Crypto Biz: Bidding war for SVB Capital, new crypto funds and Citi’s private blockchain

Citi Token Services will provide payments, liquidity to institutional customersInstitutional clients can now access cross-border payments, liquidity and automated trade financing options through Citi Token Services, a personal blockchain by Citigroup. It worked with Danish shipping business Maersk and an unnamed canal authority on a program that made immediate payments to service providers by means of clever contracts, reducing transaction processing times from days to minutes. Citi was amongst the large financial institutions that participated in a proof-of-concept headed by the Federal Reserve Bank of New York that concluded in July.Crypto Biz is your weekly pulse on the organization behind blockchain and crypto, provided directly to your inbox every Thursday.

The equity capital industry appears to be tailoring up for portfolio rebalancing in 2024, with investors positioning themselves to increase exposure to digital assets in the next booming market. Blockchain Capital, for example, closed 2 brand-new funds this week, with $580 million in capital to be released in crypto video gaming and decentralized finance jobs. Likewise, SkyBridge Capital, Atlas Merchant Capital and Vector Capital are amongst the final bidders to acquire SVB Capital, the venture arm of the collapsed Silicon Valley Bank. SVB Capital is supposedly a backer of other major equity capital companies in the crypto space, consisting of Sequoia and Andreessen Horowitz. Bitcoin-based financial investment products from mainstream financial giants are becoming more popular. Japans largest financial investment bank, Nomura, introduced through its subsidiary, Laser Digital, a new Bitcoin (BTC) fund for institutional financiers seeking to cater to the need for Bitcoin exposure. A growing number of newbies are likewise drawing in funds. Web3 start-up Bastion disclosed $25 million in a seed round to bridge Web3 facilities into enterprise innovation. The round was led by Andreessen Horowitz, Laser Digital Ventures (Nomuras crypto venture arm), Robot Ventures, Aptos Ventures and Alchemy Ventures.This weeks Crypto Biz checks out SVB Capital bids, new funds from Blockchain Capital, the Hut 8-US Bitcoin merger and Citigroups private blockchain. Scaramucci leads bidding for Silicon Valley Bank VC arm: ReportSVB Financial Group, the former parent company of Silicon Valley Bank, is getting closer to a deal that will see the organization sell its equity capital arm, SVB Capital. According to a report from The Wall Street Journal, Anthony Scaramuccis SkyBridge Capital and Atlas Merchant Capital are jostling with the San Francisco firm Vector Capital in the lasts of the bidding procedure. Sources declared that SVBs equity capital arm could be offered off for in between $250 million and $500 million however warned that a final sale is not ensured and would still need the review of the financial institutions committee. SVB Capital performs a vast array of financial investments, including backing other significant venture capital firms, such as Sequoia and Andreessen Horowitz. The company is not part of SVBs Chapter 11 personal bankruptcy procedures, and a choice on the sale is anticipated in the coming weeks.SVB Capital holdings summary as of December 2022. Source: SVB CapitalHut 8 receives green light from Canadian Supreme Court for US Bitcoin mergerCanadian Bitcoin mining firm Hut 8 is set to conclude its scheduled merger with United States Bitcoin following final approval from the Supreme Court of British Columbia. Hut 8 and US Bitcoin announced the relocation in February 2023, subject to investor and regulatory approval. The merger will see the 2 business form Hut 8 Corporation, or “New Hut,” which will become a publicly traded United States-based company. An initial announcement from Hut 8 highlighted that the merger would open 825 megawatts of capability across six different Bitcoin mining and information center facilities. New Hut also plans to note its shares on the Nasdaq and Toronto stock exchanges, trading under the ticker HUT.Blockchain Capital closes funds totaling $580 million for financial investments in crypto gaming, DeFiVenture capital group Blockchain Capital revealed the closing of two new funds, amounting to $580 million, for financial investment in facilities, video gaming, decentralized finance (DeFi), and customer and social innovations. The funds will operate as Blockchain Capitals 6th early-stage fund and its first “chance fund,” which will serve as an entry point for companies that have actually currently brought in financing. The funds will be split, with $380 million supposedly going to the early-stage fund and $200 million allocated for the opportunity fund. The company did not define which projects will be focused on by the mutual fund; nevertheless, a spokesperson noted that it has no plans to buy artificial intelligence-related jobs or function as a hedge fund. Were delighted to share the closing of 2 brand-new funds– our 6th early phase fund and 1st opportunity fund.Together, they amount to $580 million and serve to enhance our commitment to leading the global shift to decentralized, blockchain-based systems. ↓ https://t.co/Vr2uYnGlF7— Blockchain Capital (@blockchaincap) September 18, 2023

SkyBridge Capital, Atlas Merchant Capital and Vector Capital are amongst the last bidders to get SVB Capital, the venture arm of the collapsed Silicon Valley Bank. The round was led by Andreessen Horowitz, Laser Digital Ventures (Nomuras crypto venture arm), Robot Ventures, Aptos Ventures and Alchemy Ventures.This weeks Crypto Biz explores SVB Capital bids, new funds from Blockchain Capital, the Hut 8-US Bitcoin merger and Citigroups personal blockchain. According to a report from The Wall Street Journal, Anthony Scaramuccis SkyBridge Capital and Atlas Merchant Capital are jostling with the San Francisco company Vector Capital in the last phases of the bidding procedure. SVB Capital carries out a large range of financial investments, consisting of backing other major endeavor capital firms, such as Sequoia and Andreessen Horowitz. New Hut likewise prepares to note its shares on the Nasdaq and Toronto stock exchanges, trading under the ticker HUT.Blockchain Capital closes funds totaling $580 million for investments in crypto gaming, DeFiVenture capital group Blockchain Capital revealed the closing of two new funds, amounting to $580 million, for financial investment in infrastructure, video gaming, decentralized financing (DeFi), and consumer and social technologies.

Other Questions People Ask

What is the significance of the bidding war for SVB Capital in the crypto biz?

The bidding war for SVB Capital highlights the growing interest and competition among major financial players in the crypto space. With firms like SkyBridge Capital, Atlas Merchant Capital, and Vector Capital vying for SVB Capital, it underscores the potential value of its investments in prominent venture capital firms such as Sequoia and Andreessen Horowitz. This activity indicates a strategic shift as investors prepare for increased exposure to digital assets in the upcoming market cycle.

How are new crypto funds impacting the landscape of the crypto biz?

The launch of new crypto funds, such as Blockchain Capital's recent $580 million fundraising, is reshaping the investment landscape in the crypto biz. These funds are specifically targeting sectors like crypto gaming and decentralized finance, which are expected to drive future growth. As institutional investors increasingly seek opportunities in digital assets, these funds provide essential capital to innovative projects, fostering further development in the blockchain ecosystem.

What role does Citi’s private blockchain play in the current crypto biz environment?

Citi’s private blockchain, through its Token Services, is revolutionizing how institutional clients handle payments and liquidity in the crypto biz. By enabling immediate cross-border payments and automated trade financing, Citi is significantly reducing transaction processing times. This innovation not only enhances operational efficiency for clients but also positions Citi as a key player in the evolving landscape of blockchain technology and financial services.

What are the implications of Hut 8's merger with US Bitcoin for the crypto biz?

The merger between Hut 8 and US Bitcoin represents a significant consolidation in the crypto biz, creating a new entity poised to leverage substantial mining capacity. With plans to operate under the ticker HUT on major stock exchanges, this merger could attract more institutional investment and enhance market visibility. The combined resources and capabilities will likely position "New Hut" as a formidable competitor in the Bitcoin mining sector.

How does the interest from mainstream financial institutions affect the crypto biz?

The increasing interest from mainstream financial institutions, such as Nomura launching a Bitcoin fund, signals a broader acceptance of digital assets within traditional finance. This trend not only legitimizes cryptocurrencies but also opens up new avenues for institutional investors seeking exposure to Bitcoin. As more financial giants enter the crypto biz, it could lead to greater market stability and innovation, ultimately benefiting both investors and consumers alike.