ChainCatcher news, according to The Block, the algorithmic crypto trading platform Tread.fi, founded by former Morgan Stanley employees, has completed a $3.5 million seed funding round. This round was led by New Form Capital, with participation from Aquanow, Varys Capital, GBV Capital, Thanefield Capital, and others.David Jeong, founder and CEO of Tread.fi and former vice president of quantitative research at Morgan Stanley, declined to comment on the valuation but stated that this funding round utilized a Simple Agreement for Future Equity (SAFE) structure, accompanied by a symbolic letter, laying the groundwork for the next funding round in the first quarter of 2025.

ChainCatcher news, according to The Wall Street Journal, cryptocurrency and blockchain venture capital firm New Form Capital has launched a $100 million fundraising effort aimed at returning to the once-troubled cryptocurrency industry.New Form Capital stated that the venture will focus on reshaping traditional finance through crypto-related technologies, including trading markets and payment systems. Additionally, they revealed that they will also invest in some AI startups related to cryptocurrency and blockchain.

ChainCatcher news, the crypto lending platform Trident Digital Group, founded by former Coinbase executives, has completed an $8 million seed round financing, led by White Star Capital and New Form, with participation from CMT Digital, Joint Effects, and Permit Ventures. Trident will launch a yield product that links returns to risk-free interest rates while ensuring that government bonds physically back any deposits.It is reported that Trident CEO DeMartino previously worked at UBS, Barclays, and HSBC, joined Coinbase in 2021 as Head of Risk Strategy, focusing on DeFi and derivatives trading, and later served as CEO of Matrixport's U.S. operations for a year before resigning in July. Trident's Chief Business Officer Toby Norfolk-Thompson was the Chief Investment Officer of Coinbase Risk Strategy at Coinbase and previously served as Chief Investment Officer for the U.S. and U.K. at Matrixport.

ChainCatcher news, the European Central Bank (ECB) has finalized the prototype of the digital euro and is set to make a decision later this year on whether to develop the digital euro in a new format.The European Central Bank stated that the design of its potential central bank digital currency (CBDC) could promote innovation, but it seems to hold more skepticism towards the use of Web3-style distributed ledger technology and smart contracts. (source link)

ChainCatcher news, the Bank for International Settlements (BIS) published two papers on Friday stating that DeFi could lead to more turbulence in financial markets and may not resolve the dominance of large intermediaries. One paper examined a unique dataset on collateral liquidation from two major DeFi applications, Aave and Compound, where such liquidation requires arbitrageurs to repay loans in exchange for discounted collateral. The article states: "This contagion to other exchanges can lead to negative feedback loops. Our findings illustrate a new form of systemic vulnerability arising from collateralized loans under DeFi architecture."Another research paper indicated that DeFi can reduce financial transaction costs but cannot fully address the issue of centralized intermediaries charging excessive fees for services, and it may also evade scrutiny. Without proper rules, regulators will have to rely on "goodwill and voluntary cooperation," or countries may run their own versions of blockchains independently. The paper states: "The current design of DeFi applications poses significant challenges for tax enforcement and exacerbates money laundering issues and other types of financial misconduct." (Source link)