Major crypto exchange Binance has participated in Elon Musk’s $44 billion acquisition of Twitter, according to data filed with the United States Securities and Exchange Commission.
On May 5, Musk filed an amended general statement of the acquisition, announcing that Twitter received an aggregate of about $7.2 billion in new financing commitments in connection with the merger agreement, subject to the conditions in co-investor equity commitment letters.
According to the document, Binance is one of 18 co-investors in the acquisition alongside major crypto industry players like Sequoia Capital Fund and Fidelity Management and Research Company.
Having invested $500 million, Binance is the fourth biggest contributor, following the Lawrence J. Ellison Revocable Trust, which invested $1 billion. Sequoia Capital and VyCapital donated $800 million and 700 million, respectively.
Binance CEO Changpeng Zhao took to Twitter subsequently after the filing became public, describing the company’s investment as a “small contribution to the cause.”
Each listed equity investor mentioned in the document has committed to contribute immediately prior to the closing of the acquisition. “Equity Investors have retained an option to satisfy such Equity Investor’s equity commitment with shares of common stock held by such equity investor, valued at $54.20 per share,” the document reads.
Billionaire CEO and founder of Tesla Musk officially announced the acquisition of Twitter on April 25, with the $44 billion worth transaction expected close in 2022, subject to the approval of Twitter stockholders as well as regulators. He previously said that one of his top priorities for Twitter would be to remove “spam and scam bots and the bot armies,” including those related to crypto.
As previously reported by Cointelegraph, Musk was pushing Binance to address some issues on its platform last year, causing a small Twitter battle with the Binance CEO. Musk specifically brought up a problem related to some Dogecoin (DOGE) withdrawals stuck on Binance, asking Zhao to explain the issue.
Global diamond mining firm De Beers has launched a proprietary blockchain-powered platform to manage its diamond production and distribution.
The firm has long been at work on a blockchain system to trace, record and manage its diamond mining, production and distribution across the globe. The Tracr platform was first piloted and tested back in 2018, and the company has finally released the platform at scale to serve the wider diamond mining industry.
De Beers has already incorporated the system into its global operations and estimates that 25% of its diamond production by value is registered on Tracr for 2022’s first three Sights. In the diamond industry, a Sight is a collective term for a sale event and a respective lot of diamonds for purchase.
The platform will give diamond industry producers and retailers access to tamper-proof records of a diamond’s provenance. Sightholders, companies that are authorized bulk purchasers of rough diamonds, will benefit from the immutable record of diamond credentials, which will, in turn, provide retailers with the added assurance of a diamond’s pedigree and origin.
De Beers has touted the performance of the platform to be able to scale to meet periods of high production. Tracr will be able to register one million diamonds per week on the platform, which is a major upgrade to centralized platforms that have been criticized for struggling with large volumes of data that historically cause bottlenecks in this process.
As with many blockchain-powered systems, Tracr will allow companies and users to control the permission, use and access to diamond data. This goes down to an individual level, with each user given their own distributed version of the platform, much like a traditional node operator in other blockchain networks.
Privacy and security are paramount to the ongoing operation of the diamond industry. Tracr’s blockchain-based system also ensures that every transaction on the platform is immutable, removing the threat of data tampering as a diamond moves through the value chain.
In 2021, Antwerp World Diamond Centre (AWDC) and Bain & Company released their latest Diamond Industry report, which highlighted key trends for the industry and an outlook for the next decade.
A key takeaway was an increased focus on sustainability and social consumerism. The report indicated that consumers are far more conscious of environment preservation, conflict-free supply chains as well as the carbon footprint of mining operations.
The United States continues to be a global leader in embracing the cryptocurrency industry thanks to the work of Sen. Patrick Toomey, with the White House being at the forefront of crypto regulation. Last year, President Joe Biden signed a $1.2 trillion bipartisan infrastructure bill — and it included some new legislation that would impact the crypto sector. And more recently, the U.S. president announced a “whole-of-government” approach to regulating cryptocurrency in an across-the-board executive order directing multiple government agencies to answer specific questions on cryptocurrencies. The U.S. for the last year has clearly been seeking to help make the crypto industry more sustainable, which will make it significantly easier for cryptocurrency platforms to operate.
But the Stablecoin Transparency of Reserves and Uniform Safe Transactions Act of 2022, dubbed the Stablecoin TRUST Act for short, makes the U.S. likely the only country, or at least the only Western country, to fully regulate and accept stablecoins as an official part of the financial and banking system.
Introduced by Sen. Toomey, the ranking member of the Senate Banking Committee, the Stablecoin TRUST Act forces stablecoin issuers to adhere to certain rules. The regulations in the act are sweeping and comprehensive. The bill clarifies that payment stablecoins are not securities, which is a great thing for the industry. The bill also refers to stablecoins as “payment stablecoins” — digital assets that can be “convertible directly to fiat currency by the issuer” and that have a “stable value relative to a fiat currency or currencies.”
Stablecoin issuers would have to choose between securing the Office of the Comptroller of the Currency (OCC) license, a state money transmitter, or similar license or a traditional bank charter. Stablecoin issuers operating in the U.S. would be subject to a disclosure regime that would require them to secure regular audits, detail clear redemption policies and specify what actually backs the stablecoins they issue.
This Daily Dose was brought to you by Cointelegraph.