Block Green, a Swiss-based Bitcoin liquidity protocol, has announced a partnership with US Bitcoin mining company Merkle Standard to provide miners with better liquidity options. The platform’s Bitcoin script and custodial solutions help streamline mining reward agreements for Bitcoin holders. The partnership allows for the hedging of future risks and immediate liquidity at transparent and favorable rates.
Block Green CEO, Sebastien Hess, referred to the move as “driving growth capital coupled with risk mitigation”. The partnership has already proved successful, with mining software company Luxor Tech showing interest in the service.
In other news, the US SEC’s lawsuit against two cryptocurrency exchanges, Binance and Coinbase, has stirred a change in investor on-chain behavior, according to Glassnode’s latest report. Short-term cryptocurrency holders have sent their balances to exchanges, with Binance experiencing higher withdrawals. The company’s stablecoin balance fell by $1.6 billion, while Coinbase saw larger Ethereum withdrawals, possibly indicating increased investor fear surrounding the company’s staking-as-a-service product.
Additionally, the report found that very large entities, such as institutions, were more heavily impacted by the SEC news. Coinbase’s market share has soared from 46% to 64% over the past week, while Binance.US has seen an 80% drop in liquidity, with market makers and traders leaving the exchange in large numbers.
Market depth has fallen from $34 million to $7 million since the SEC lawsuit. Market makers play a crucial role in providing liquidity by placing buy and sell orders at different price levels, but the decrease in depth has resulted in more than a 6% price difference between mainstream cryptocurrencies on Binance.US and other exchanges. Meanwhile, Binance’s open interest has fallen by over 25% from peak to trough.
The transformation of the cryptocurrency industry is far from over as partnerships form and investors and traders react to regulatory news. Block Green’s partnership with Merkle Standard is an example of companies working together to provide better liquidity options, and it will be interesting to see how other companies react to the changing market conditions.