Banks and merchant companies are gradually offering their customers services related to cryptocurrencies. Here is a look at the week’s most important headlines.
MoneyLion customers gain access to crypto trading services
U.S. banking and investment firm MoneyLion announced on Monday that it has added a cryptocurrency option to its financial app. The company also confirmed that its public listing is planned for later this month. Initially, users will be able to trade only Bitcoin and Ethereum, but MoneyLion intends to add other crypto coins over time.
In a joint press release, MoneyLion executive Dee Choubey said the new offering will help customers manage their finances more effectively. Choubey explained that digital assets align with the company’s goal of providing relevant education and tools to support customer decisions. As an early step into decentralized finance (DeFi), the company plans to raise customer awareness about these products.
Choubey also noted that MoneyLion may explore additional crypto products in the future, including non-fungible tokens (NFTs) and yield-generating products. The fintech company said it will sponsor a $1 million crypto prize pool, allowing early adopters of MoneyLion Crypto a chance to claim part of the Bitcoin rewards.
MicroStrategy now holds more than 114,000 Bitcoins
Michael Saylor, a prominent Bitcoin advocate, told the crypto community on Monday via tweet that his company MicroStrategy purchased an additional 5,050 Bitcoins for $242.9 million. The company now holds a total of 114,042 Bitcoins at an average purchase price of $27,713 per Bitcoin.
Additionally, MicroStrategy reported to the SEC that it bought 8,957 Bitcoins in Q3 2021 for a total of $419.9 million. Saylor, the company’s CEO, has prioritized MicroStrategy’s Bitcoin strategy since 2020 as part of its treasury management approach. Other major companies, such as Jack Dorsey’s Square and Elon Musk’s Tesla, followed suit and shifted portions of their reserves into Bitcoin.
Not all executives reacted positively to increasing corporate exposure to cryptocurrencies. Some reportedly sold MicroStrategy shares shortly after the announcements, which did little to boost confidence in the bitcoin strategy. Last week, Saylor said that allocating to cryptocurrencies instead of gold had spared his company a potential “billion-dollar mistake.”
AMC theaters to accept crypto payments
Cryptocurrencies are continuing to move into mainstream consumer use. AMC CEO and Chairman Adam Aron announced on Wednesday that the entertainment company will enable ticket purchases using Ethereum, Litecoin and Bitcoin Cash by the end of the year.
This followed an earlier announcement in August that initially included only Bitcoin as the accepted digital asset. The initial update also announced that AMC will enable Apple Pay and Google Pay in theaters. Notably, those payment services recently partnered with a public exchange to support branded crypto cards.
Some customers voiced disappointment with AMC’s announcement, and the Dogecoin community in particular questioned why DOGE was excluded from payment options. Supporters argued Dogecoin sees wide real-world usage—sometimes more than some accepted cryptocurrencies—and pointed to examples where merchants reported major portions of merchandise payments coming in DOGE.
Interactive Brokers launches crypto services in the U.S.
Financial services firm Interactive Brokers announced earlier in the week that it will partner with Paxos to enable cryptocurrency trading for its customers. According to the announcement, U.S. clients will be able to trade and hold Bitcoin, Litecoin, Ethereum and Bitcoin Cash through the Paxos Trust Company.
The service will initially be limited to customers residing in the United States, with plans to expand to international markets later. Interactive Brokers becomes, after Robinhood, one of the largest brokers to offer direct cryptocurrency investment to its clients.
To make its market entry more attractive, the online broker said it will charge relatively low fees. The platform will levy between 0.12% and 0.18% of the trade value depending on monthly volume, with a minimum fee of $1.75 per order.
Coinbase ups junk-bond sale to $2 billion
Rising market interest prompted Coinbase, one of the world’s largest cryptocurrency exchanges, to increase its junk-bond offering from the initially announced $1.5 billion to about $2 billion. The sale is being led by investment bank Goldman Sachs.
According to reports citing anonymous sources, investors offered lower yields than Coinbase had initially sought, indicating stronger confidence in Coinbase’s creditworthiness than the company expected. Reports said bids totaled as much as $7 billion.
The bonds were sold in equal parts across seven- and ten-year maturities, carrying interest rates of 3.375% and 3.265% respectively. While those rates were lower than Coinbase’s original targets, they remain higher than the average yield of 2.86% for similarly rated debt. Coinbase said it intends to use proceeds to increase investment in product development and potentially to acquire technologies, companies and products in the future.