Crypto Three Things (7/15)

The secret of success is to do the common thing uncommonly well-John D. Rockefeller Jr.

1) Alan Howard quietly stacks crypto: The co-founder of $23B asset manager Brevan Howard has been building a digital asset empire, taking up significant roles as a crypto VC across Europe and the US, the Financial Times reported. In the analysis, the FT cites 43 investments by the macro hedge fund boss in a flurry of companies ranging from large-scale ones like FTX to smaller projects like play-to-earn crypto games and NFTs. The diverse portfolio has been in the making for the past five years.

Titan’s Takeaway: Quiet accumulation of crypto assets across the spectrum looks like a strategic macro move by someone betting on the ecosystem’s growth rather than its individual parts. In light of the recent turmoil, this thematic approach might be a winning one.

2) SEC’s Gensler seeks to build bridges: Securities and Exchange Commission chief Gary Gensler said the agency might use its powers to tailor disclosures to suit crypto companies while protecting investors. In his usual manner, Gensler invited all those non-compliant crypto companies to “come in, [and] talk to us” as he weighed exempting them from specific securities laws. The SEC boss emphasized that cooperation and transparency should pave the path forward.

Titan’s Takeaway: Gensler’s take on digital asset policies is another step toward bridging the gap between Wall Street’s top regulator and the crypto community. Still, it will likely take a lot of back-and-forth dialog before the industry is pulled into compliance.

3) Circle breaks down its reserves: Stablecoin issuer Circle fully disclosed its holdings, reporting a total of $55.7B in reserve assets backing the USDC’s stability. With this being the first monthly report, the company plans to provide daily disclosures of its reserves eventually. In addition to the dollar-pegged token, Circle expanded its offerings with a euro-backed stablecoin called Euro Coin (EUROC), launched this week. 

Titan’s Takeaway: Circle appears to realize the importance of transparency, and its first full disclosure is a move that will likely enhance the coin’s reputation in the gloomy stablecoin sector. Since the report is unaudited, verifying the numbers by an independent audit will solidify USDC’s position as a trusted stablecoin.