Credit: Shutterstock photoWhen cryptocurrency was initially thrust into the spotlight in 2017, traditional institutions steered clear of these currencies. However, there are signs the tide is changing. We used the CoinWatch Platform to identify two large cap industry goliaths, namely Facebook (FB) and Goldman Sachs (GS), that have just unveiled plans to break into the world of crypto.
Facebook To Launch its Own Cryptocurrency
Social media tycoon Mark Zuckerberg sent pulses racing this week with news that Facebook is ‘very serious’ about exploring its own cryptocurrency spin-off. This shock decision is a sharp U-turn from its former position.
In January, Facebook issued a ban on all ads promoting crypto, in a bid to block people from advertising ‘financial products and services frequently associated with misleading or deceptive promotional practices.’ Subsequently, FB Corporate Developer Morgan Beller assured the public that Facebook had no plans to integrate blockchain as ’payments using crypto right now is just very expensive, super slow, so the various communities running the different blockchains and the different assets need to fix all the issues.’
However, Cheddar sources have now revealed that Beller had already been exploring the possibility of entering the blockchain for almost a year. At the same time, Vice President of the Messenger App, David Marcus, has announced further plans to ‘explore how to best leverage the power of blockchain technology across Facebook, starting from scratch.’ Marcus said he would spearhead a new team to ‘explore many different applications.’ Despite the infinite number of questions raised by this revelation, Marcus abruptly concluded ‘we don’t have anything further to share.’
Whether this announcement was unveiled to divert attention from Facebook’s data issues, or to give Facebook a credible boost, the networking giant is still an iconic benchmark for the industry. A pivotal move like this could represent a monumental shift for the entire social media and crypto landscape.
Goldman Sachs Backs a Crypto Spin-Off
A Goldman Sachs-funded start-up called Circle has just announced plans to unleash a new cryptocurrency that is a ‘better, faster, digital version of the U.S. dollar.’ The fintech start-up recently wrapped up a $110 million in an investment round with crypto-mining company Bitmain, and Circle CEO Jeremy Allaire hailed the new currency as ‘basically a dollar that operates on blockchain.’
Circle functions as a peer-to-peer payment network using blockchain technology. After the $110 million cash injection, this brought its value to a staggering $3 billion, and the two companies have partnered to ‘develop the fiat-backed token or stable coin.’ Allaire signaled that the initiative is designed to tackle the instability and volatility of cryptocurrencies and that the ‘blockchain-native asset will be supported by government currency and enable digital wallets to communicate with each other.’
Circle is one of the most well-funded fintech startups in the game, with prominent support from investment giants including Goldman Sachs. Allaire predicts that ‘there are a number of banks who are excited about it and will support it.’ He continues that it ‘is part of Circle's bid to become a conglomerate of cryptocurrency trading services, moving it beyond just the level of an exchange platform.’ The project is set to be branded Circle USD Coin, or USDC and should be ready for lift-off by the summer.
Article by Jenny Lynton
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
