Daily Edition · Page 6

THE DAILY INDEX

Technology, AI, software, security, crypto and business

MARKETS & BUSINESS

TLDR Crypto

JPMORGAN TO ACCEPT CRYPTO ETFS AS COLLATERAL FOR LOANS

JPMorgan will allow clients to use crypto exchange-traded funds as collateral for loans beginning with BlackRock's iShares Bitcoin Trust. The bank will also include crypto holdings when calculating client net worth, treating digital assets similarly to traditional ones in determining borrowing capacity. This initiative aligns with broader industry shifts after the Federal Reserve lifted guidance discouraging bank crypto activities and the OCC clarified that banks can custody customer crypto assets.

LEVEL: ONCHAIN BANKING PROTOCOL

Level has built an onchain banking protocol that aggregates USDC and USDT deposits, allocates them to low-risk lending strategies, and issues a single fungible stablecoin, lvlUSD, backed by the pooled receipt tokens. By accepting both native stablecoins and existing receipt tokens, Level solves fragmentation in DeFi lending and expands the on-chain money supply through transparent, programmable fractional-reserve operations. All reserve allocations and lending positions are fully onchain and auditable, combining the productivity of fractional-reserve banking with DeFi's transparency.

SIDEBAR: COINBASE'S FOUR-STEP PLAN FOR AFRICAN BUILDERS

Coinbase's new West Africa lead, Damilare Aregbesola, is rolling out a four-part Base Batch program aimed at helping African builders go beyond hackathons with sustained access to funding, mentorship, and global exposure. The initiative includes workshops, a buildathon, a world-class incubator, and a global demo day offering up to $1M in funding. Aregbesola highlights stablecoins as the most impactful blockchain use case in Africa today, urging builders to focus on solving core financial challenges before chasing newer trends.

UNDERSTANDING FLUID: A COMPREHENSIVE OVERVIEW

Fluid's Liquidity Layer unifies onchain capital by pooling deposits into multisided lending, vault, and DEX protocols, allowing users to earn yield while enabling overcollateralized borrowing and efficient asset swaps. Its Vault protocol's range-based liquidation engine supports up to 95% LTV with minimal penalties, and its “Smart Collateral” and “Smart Debt” primitives let collateral and debt positions double as DEX liquidity, driving over $10 billion in USDC–USDT volume. Since rebranding from Instadapp in late 2024, Fluid has grown to nearly $2 billion in deposited collateral and surpassed $46 billion in DEX trading volume across Ethereum and its Layer 2s, all governed by FLUID tokenholders. Upcoming upgrades include a modular, gas-efficient DEX V2 and a Solana launch via Jupiter Lend.

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