Crypto Biz: The Biggest Problem With DeFi Isn’t What You Think

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Cryptocurrency has converted another Wall Street veteran after ex-Morgan Stanley chief executive Kevin Lepsoe launched a new decentralized finance (DeFi) platform. His new company, Infinity Exchange, received a nice injection of seed funding to drive the adoption of DeFi among institutions. In his pledge to help build “DeFi 2.0,” Lepsoe described one of DeFi 1.0’s biggest pain points — and it’s one you’ve probably never heard of. It turns out that if you want institutions to adopt your products and services, you need to give them a product suite that they’re familiar with. Until then, DeFi offers a value proposition obscured by risk and inefficiency.

This week’s Crypto Biz newsletter examines Lepsoe’s solution to the dangers of DeFi. We also dissect the latest news about MicroStrategy and Fireblocks.

Fixed interest rates to create a DeFi 2.0 for institutions, says former bank executive

Lepsoe’s Infinity Exchange has raised $4.2 million to continue building its institutional fixed-income protocol, which introduces the concept of a floating rate with a zero-bid offer. In other words, Infinity Exchange seeks to bring the interest rate mechanisms and risk management practices of traditional finance to DeFi. According to Lepsoe, providing institutional investors with access to a full-rate product suite, including fixed-to-variable rates, could be key to driving DeFi adoption. While most of us are aware of DeFi’s boom-and-bust cycles, Lepsoe said the industry’s biggest challenge is the decoupling between floating-rate and fixed-rate markets. Not exactly intuitive, but it’s a compelling look nonetheless.

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MicroStrategy Reinvests $500 Million Share Sales in Bitcoin: SEC Filing

Michael Saylor’s business intelligence firm MicroStrategy plans to buy much more Bitcoin (BTC), which should surprise no one at this point. In a recent filing with the United States Securities and Exchange Commission, MicroStrategy revealed it is partnering with agents Cowen and Company and BTIG to raise $500 million through a stock sale, with the proceeds going towards acquiring more BTC. The business intelligence firm is doubling its Bitcoin gambit despite dropping more than $1 billion from its current position. With BTC hovering around $20,000 and analysts expecting more downtrend in the near term, will MicroStrategy actually buy the dip this time around, or will the price just keep falling after the buy?

Institutional Investors Heading to a Tipping Point for Crypto: Apollo Capital

Remember when investing in crypto was considered a ‘career risk’? Now it looks like not investing in digital assets carries the greatest reputational risk. What a difference a year can make. According to Apollo Capital chief information officer Henrik Andersson, institutional investors may soon “reverse” their conservative approach to digital assets. In an exclusive interview with TBEN, the crypto fund manager said that institutional interest in digital assets is slowly increasing. Some large institutions, such as pension funds, may wait for others to take the first step because no one wants to be first and is wrong. But once the floodgates open, not getting assigned is considered a greater career risk.

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Fireblocks Records $100M+ Subscription Revenue Amid Bear Market

The crypto industry has crowned dozens of unicorns in the past two years, but how many of these companies have a viable business model? Blockchain infrastructure provider Fireblocks announced that it has generated more than $100 million in annual recurring revenue this year, which is a huge milestone given the current state of the market. Web3 startups, payment service providers, consumer brands, and gaming companies have all contributed to Fireblocks’ massive pull, showing that the blockchain industry is attracting steady interest despite the bear market.

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Do not miss it! Will Ethereum’s Merge Change Crypto History?

Ethereum’s Merge has been described as a landmark event for the blockchain industry as the largest smart contract platform begins a major shift in its governance structure. While most traders are fixated on the price of Ether (ETH), there is much more at stake. Will the Merge change the trajectory of the crypto industry, which relies so heavily on Ethereum? Or will it prove to have a negligible impact in the long run? In this week’s Market Report, analysts Marcel Pechman, Benton Yaun and Joe Hall discussed the topic. You can watch the full replay below.

Crypto Biz is your weekly pulse of the company behind blockchain and crypto delivered straight to your inbox every Thursday.