UK Pension Fund Becomes First to Invest Directly in Bitcoin
An undisclosed UK-based pension fund has made headlines as the first pension fund in the country to directly invest in Bitcoin. The fund, which invested 3% of its total assets, has committed approximately 50 million pounds to the cryptocurrency. This pioneering move signals a growing acceptance of digital assets in traditional financial portfolios. Interestingly, the pension fund has opted to invest directly in Bitcoin, rather than using indirect methods such as exchange-traded funds (ETFs).
In an effort to safeguard the fund's holdings, the private keys to its Bitcoin were divided and distributed among five independent institutions, ensuring a robust security infrastructure to protect the assets. This unique approach to securing a high-value crypto investment is expected to set a new standard for institutional involvement in digital assets.
Global Dollar Network Launched to Drive Stablecoin Usage Worldwide
Fintech leaders and digital asset pioneers have come together to introduce the Global Dollar Network, an open platform designed to accelerate the global adoption of stablecoins. The new initiative, which marks a significant shift in the stablecoin landscape, brings together several high-profile industry partners, including Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood. These partners will pool their resources and expertise to promote the use of stablecoins, particularly in real-world applications, aiming to solve current inefficiencies in the market.
The creation of the Global Dollar Network is set to address the key challenges facing stablecoins today, including their lack of consumer protections and outdated business models that levy high costs on blockchain ecosystems and global economies. The network is also expected to promote competition in the stablecoin sector, which has been hindered by a few dominant players, thereby unlocking more opportunities for institutions seeking low-cost, secure, and scalable stablecoin solutions.
At the center of this innovation is the Global Dollar (USDG), a new stablecoin issued by Paxos, based out of Singapore. The coin is designed to meet the standards set by the Monetary Authority of Singapore’s forthcoming stablecoin framework, which provides regulatory clarity and stability in the growing stablecoin market. The USDG will serve as the anchor currency for the Global Dollar Network, and its use will help drive adoption across multiple sectors.
- Anchorage Digital
- Bullish
- Galaxy Digital
- Kraken
- Nuvei
- Paxos
- Robinhood
The network also aims to address the inherent issues of enterprise adoption, which have been limited by traditional business models and a lack of regulatory compliance. Global Dollar Network is expected to revolutionize how stablecoins are used in cross-border payments, enabling fast peer-to-peer transactions and efficient trading capabilities while offering rewards on select stablecoin deposits.
Nathan McCauley, CEO of Anchorage Digital, emphasized the opportunities that stablecoins present for institutions, noting that they provide fast cross-border settlement options and the ability to earn rewards on deposits. He added, “Institutions gain an incredible set of opportunities with stablecoins: fast peer-to-peer and cross-border settlement, efficient trading capability, and the chance to earn rewards on select stablecoin deposits.”
Arjun Sethi, Co-CEO at Kraken, underscored the lack of competition in the regulated stablecoin market, stating that the introduction of USDG would help bring mainstream participants into the ecosystem. “The lack of competition in the regulated stablecoin market has prevented the industry from reaching its full potential,” Sethi said. “USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases.”
According to Charles Cascarilla, CEO and Co-Founder of Paxos, the Global Dollar Network represents a turning point in the stablecoin space, emphasizing that leading stablecoins remain unregulated and retain all reserve economics. He explained, “Stablecoins are replatforming the financial system and revolutionizing how people interact with US dollars and payments. However, the leading stablecoins are unregulated and retain all the reserve economics. Global Dollar Network will return virtually all rewards to participants and is open for anyone to join.”
Joining the momentum, Johann Kerbrat, GM & VP of Robinhood Crypto, expressed his company’s commitment to expanding the use of stablecoins, which have proven to bridge traditional finance with cryptocurrency ecosystems. “Stablecoins have been proven to offer a bridge between traditional finance and cryptocurrencies, enabling faster, lower cost, and more efficient transactions,” Kerbrat stated. “We’re pleased to support the Global Dollar Network’s efforts to expand these opportunities, which align with our commitment to making financial access easier and more inclusive.”
Tom Farley, CEO of Bullish, highlighted the importance of trusted stablecoins in facilitating seamless transitions between crypto and traditional markets, adding, “Trusted stablecoins are essential in bridging the gap between crypto and traditional markets. By combining the efficiency of blockchain technology with robust prudential oversight, institutions can confidently engage with digital assets.”
USDG will soon be available across all distribution partners in the Global Dollar Network, and leading Southeast Asian bank DBS Bank, recognized as the safest bank in Asia for 16 consecutive years, will serve as the primary banking partner at launch. DBS will be responsible for cash management and custody of USDG reserves.
Subscribe to Our YouTube Channel!
