Weekly Summary: Focus on Crypto M&As as Consensys Buys Web3Auth and FalconX Takes Majority Stake in Monarq
In this edition, crypto M&As take centre stage as blockchain firm Consensys acquires wallet infrastructure startup Web3Auth and FalconX takes majority stake in digital asset hedge fund manager Monarq.
🔊Crypto M&As Are Heating Up
The crypto market has recently been on a bullish run, which saw the Bitcoin price hit a new all-time high of about $112,000. As such, several players have been looking for ways to cement their positions as they gear up for the next growth phase.
Mergers and acquisitions have been a major highlight this year with the likes of Kraken, Coinbase, Circle, Robinhood and Alchemy among those augmenting their offerings through acquisitions.
More recently, Consensys acquired crypto wallet infrastructure company Web3Auth, citing the need to make seed phrase management easier for MetaMask users as one of the main reasons behind the acquisition.
On the other hand, FalconX is looking to expand its digital asset strategy with a majority stake in crypto hedge fund management firm Monarq.
Consensys Acquires Web3Auth to Boost MetaMask User Experience
The acquisition allows Consensys to leverage Web3Auth’s wallet infrastructure to improve seed Phrase management.
MetaMask users will be able to create and recover wallets using Web3Auth’s user-friendly Web2 login methods.
This removes the need to back up seed phrases manually, thus reducing the risk of losing funds.
Consensys also plans to leverage Web3Auth’s infrastructure to speed up MetaMask support for non-EVM chains like Solana and Bitcoin.
Consensys co-founder and CEO Joseph Lubin said in the statement. “This integration enhances MetaMask’s capabilities significantly, embodying our belief that the best web3 wallets will seamlessly integrate an infrastructure that supports a wide range of empowering features. These include frictionless onboarding, customizable interfaces, extensive ecosystem connectivity reminiscent of a mycelium network, configurable security for varying needs, and maximal protections in high-security contexts.”
FalconX Takes Majority Stake in Multi-Strategy Hedge Fund Monarq Asset Management
The prime brokerage platform said the acquisition is part of its strategy of expanding its asset management services.
Shiliang Tang the CEO and managing director of Monarq previously worked at Bank of America Merril Lynch and UBA as a volatility trader before pivoting to crypto in 2017.
This investment follows FalconX CEO Raghu Yarlagadda’s comments in October predicting a wave of consolidation in the crypto space.
💵Crypto Fundraising News
Stablecoin Issuer Circle Raises More than $1 Billion in Oversized IPO
The company offered 34 million shares of its common stock priced at $31 per share, valuing the company at $6.9 billion.
Circle offered 14,800,000 shares of Class A common stock with the selling stockholders offering 19,200,000 shares.
The company has also granted underwriters a 30-day option to purchase additional 5.1 million shares.
Circle stock started trading on the New York Stock Exchange on June 5 under the symbol CRLC. The stock spiked to $91 per share on Thursday.
Chinese Automotive and Hospitality Firm Webus Advances Plans for $300M XRP Treasury
The company has filed with the SEC to notify U.S. investors of its plans to raise $300 million for a strategic XRP treasury.
It follows Webus’ announcement last week to establish a framework that provides it with institutional-grade infrastructure and expertise for potential future digital asset treasury operations, specifically focused on XRP management.
The agreement takes a phased approach with the asset management mandate becoming effective only after Webus’s actual transfer of digital assets to designated custody wallets.
“As we continue to evaluate innovative approaches to treasury management, establishing this framework with a regulated, institutional-grade partner provides us with strategic optionality while maintaining prudent controls,” he said. “Samara Alpha brings institutional-grade discipline, and we look forward to activating the mandate when operational needs and funding align.”
🔊More News
MoonPay Secures New BitLicense to Roll Out Crypto Payment Services Across All 50 US States
The license allows the crypto payments firm to “operate coast-to-coast in the United States without coverage gaps.”
The BitLicense authorises firms to conduct business in virtual currencies in New York.
The issuance of the BitLicense comes despite New York City Mayor Eric Adams recently speaking against it.
The new license enables MoonPay’s New York-based customers to access all services provided by the firm.
MoonPay co-founder and CEO Ivan Soto-Wright: “The New York BitLicense is a critical milestone for MoonPay, enabling us to directly service New York customers. New York is considered the gold standard in U.S. financial regulation, and we are thrilled to join the small group of companies that have passed this rigorous process.”
Polymarket Becomes the Official Prediction Market Partner of xAI and X
The predictions markets platform has announced a partnership with Elon Musk’s AI firm xAI.
Shayne Coplan, the CEO of Polymarket, described the partnership as a union of two truth-seeking platforms.
The announcement comes amid Musk’s public fallout with President Trump whose media company owns Truth Social.
Big Techs Eye Stablecoin Integration to Bring Crypto to the Mainstream
Apple, X, Airbnb and Google are holding early conversations with crypto firms about integrating stablecoins, according to Fortune.
An anonymous source told Fortune that the firms see crypto as a means of cutting transaction costs in their bid to optimize cross-border payments.
Meta is also reportedly leaning towards crypto despite abandoning its earlier plans due to regulatory challenges.
They join the likes of Uber, whose CEO Dara Khosrowshahi on Thursday told Bloomberg his company is in the “study” phase of using stablecoins for global transfers.
Kraken Launches Prime Brokerage Services for Institutional Digital Asset Investors
Crypto institutions will gain access to trading, custodial and financing services from a unified platform.
Kraken Prume will provide liquidity for more than 90% of the digital asset market.
The platform also supports asset-backed lending, T+1 facilities and an in-house smart order routing system.
The announcement follows Kraken’s partnership with the financial API platform Alpaca to enable stocks and ETFs trading.
Kraken co-CEO David Ripley said in a statement: “Kraken Prime is built to meet the execution quality and service expectations of today’s institutional investors. Our infrastructure has been battle-tested across several market cycles, and with Kraken Prime, we’re channelling that robustness and unmatched expertise into a premium experience tailor-made for institutions.”
📈On-Chain Analysis
Bluefin TVL Surges to Nearly $200M After Launching Lending Platform
Bluefin’s TVL on Sui has nearly doubled to $198M in a week, driven by the launch of its lending platform.
The increase in liquidity inflow may be partially caused by the dramatic collapse of Cetus, which suffered a major hack over a week ago, leading to a 75% decline in TVL.
Cetus was one of the largest decentralized exchanges (DEXs) on Sui and is now left with about $62 million in TVL.
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