Weekend Update Newsletter

I hope you had a good weekend, folks. In today’s newsletter, the SEC warns FTX against repaying creditors in stablecoins, OKX hires a former MAS official as its Singapore CEO, global crypto investment products see over $300 million in net weekly outflows, and more.

Let’s get started.

SEC Warns FTX Over Stablecoin Repayments

In a recent filing, the Securities and Exchange Commission warned the FTX estate that it might oppose attempts to repay creditors with stablecoins or other digital assets.

• While some creditors have called for in-kind distributions, FTX’s current plan is to pay creditors back in cash or U.S. dollar-pegged stablecoins.
• The SEC stated it reserves the right to challenge the legality of repaying claims or generating revenue from FTX’s holdings of “crypto asset securities.”
• Additionally, the SEC filing noted that the plan does not specify who would distribute the stablecoins if the repayment method was approved.
• The regulator also joined the U.S. Trustee overseeing the bankruptcy by objecting to a discharge provision in the plan that would protect FTX debtors from future legal actions by creditors.
• The administrative costs of FTX’s bankruptcy have soared since the crypto exchange collapsed in November 2022, with fees surpassing $800 million.

OKX Becomes Fully Licensed in Singapore, Hires Former MAS Official as Local CEO

OKX’s Singapore entity, OKX SG, has received a full Major Payment Institution license from the Monetary Authority of Singapore.

• OKX appointed Gracie Lin—a former MAS official who has also held roles at sovereign wealth fund GIC and ride-hailing giant Grab—as CEO of its Singapore operations.
• The new license allows OKX SG to offer digital payment token and cross-border money transfer services, including spot crypto trading for Singaporean investors.
• OKX considers Singapore a “priority market” for its crypto exchange platform, which processed over $67 billion in trading volume globally last month.

Global Crypto Investment Products Record $305 Million in Net Weekly Outflows

Global crypto investment products returned to net outflows last week, totaling $305 million, following net inflows of $543 million the week before, according to CoinShares.

• The outflows came amid “widespread negative sentiment evident across various providers and regions,” Head of Research James Butterfill wrote.
• This was driven by stronger-than-expected economic data in the U.S., which “diminished the likelihood of a 50-basis point interest rate cut,” Butterfill added.
• Bitcoin dominated, with funds based on the foremost cryptocurrency experiencing $319 million in net outflows, while short bitcoin funds saw $4.4 million in net inflows for the second consecutive week.
• Ethereum investment products also witnessed $5.7 million in net outflows, while Solana-based funds and blockchain equities bucked the trend, recording net inflows of $7.6 million and $11 million, respectively.

DeFi Protocol Fees and Bitcoin Miner Revenues Drop in August as Crypto Exchange Volumes Rise

DeFi protocol fees dropped by 24.4% in August to $288 million, marking the lowest level since February, according to The Block’s data dashboard.

• Lido led in fee generation with $76.2 million, followed by Uniswap, Jito, and PancakeSwap.
• Total bitcoin miner revenues also declined in August, dropping 10.5% to $851.4 million, down from a record high of over $2 billion in March.
• Meanwhile, centralized crypto exchange trading volumes rose 6.6% last month to $1.2 trillion, extending the growth that began in July after hitting a multi-month low in June.
• Binance captured the largest market share in August, with a trading volume of $448.5 billion.

Harris’ Election Win Odds Slip to 47% on Polymarket as Trump Gains Ground

U.S. Vice President Kamala Harris’s odds of winning the November election have dropped to 47% on the decentralized predictions platform Polymarket.

• Donald Trump’s odds of winning remain around 50%, surpassing Harris after the candidates were previously tied at 50-50, with the Vice President leading earlier in August.
• The U.S. presidential election is the largest prediction market on the platform, with a trading volume of more than $778 million.

In the Next 24 Hours

• It’s quiet on the economic calendar front.
• Korea Blockchain Week continues in Seoul.

Never miss a beat with The Block’s daily digest of the most influential events happening across the digital asset ecosystem.