Twitter, now known as X, is planning to add financial services to its platform in an attempt to become the American equivalent of the popular Chinese super-app WeChat. This move is part of a larger strategy by Elon Musk, the owner and chief technology officer of X, to offer an “entire financial world” on the platform.
Super-apps, like WeChat, have been successful in China by providing users with a range of services beyond social networking. They have become the go-to app for everything from shopping to filing for divorce. Musk believes that X has the potential to capture “half of the global financial system” if executed correctly.
One of the key elements of X’s plan is the inclusion of cryptocurrencies. Musk has hinted that Dogecoin (DOGE), a popular meme cryptocurrency, could play a role in X’s services. In April, Musk also announced a partnership with eToro to offer crypto and stock trading on the platform. As the “global town square” where much of the crypto business and innovation takes place in real-time, X has the potential to shape the future of the crypto industry in the Western world.
In addition to X’s plans, the Italian central bank has embraced decentralized finance (DeFi) by supporting a tokenization project with Polygon and Fireblocks. The project aims to help financial institutions get started with DeFi and tokenized assets. This move reflects growing interest in DeFi and security tokens on secondary markets within the crypto industry.
Meanwhile, PacWest bank experienced a flash crash of its stock, losing 27% of its value before quickly recovering following a merger with the Banc of California. The merger aims to strengthen both banks and comes after a period of turmoil in the banking industry earlier in the year. Together, the two banks are expected to have around $36 billion in assets and over $25 billion in total loans.
In terms of investment trends, Bitcoin-related products have seen a decline in interest from crypto investors. Bitcoin investment products recorded their first week of outflows since BlackRock filed for a spot Bitcoin ETF in June. In contrast, Ether and XRP investment products have seen inflows of $9.2 million in the past week. Altcoins such as Solana and Polygon have also attracted some investment, potentially benefitting from Ripple’s recent legal victory.
In conclusion, X’s plans to add financial services to its platform, along with the Italian central bank’s embrace of DeFi and the merger between PacWest and Banc of California, indicate significant developments in the financial and crypto industries. Moreover, the changing investment trends in cryptocurrencies suggest a shifting landscape in the digital asset market. These developments have the potential to shape the future of money and finance in the Western world.
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