Fineqia AG, the European subsidiary of digital assets and investment firm Fineqia International, has unveiled the first-ever exchange-traded note that deploys Cardano assets for yield bearing in decentralized finance.

The Fineqia FTSE Cardano Enhanced Yield ETN, which went live on the Vienna Stock Exchange on Jan.24, will allow investors to tap into opportunities around Cardano (ADA) price appreciation while still earning yield regardless of the underlying asset’s price movement. 

ETNs are debt instruments that collateralize an exchange-traded product’s underlying asset, including crypto. The Cardano ETN, which trades under the ticker YADA, provides access to yield by deploying ADA across yield-bearing DeFi protocols.

The global DeFi market currently holds over $155 billion in total value locked across various protocols. According to DeFiLlama, the TVL peaked at $207 billion during the last bull market. Meanwhile, research platform Statista estimates that the global DeFi ecosystem could see its revenue grow to $542 billion by 2025.

Fineqia’s offering is a collaboration with FTSE Russell, a subsidiary of the London Stock Exchange, which will serve as the ETN’s index provider.

The launch of the Cardano ETN follows Fineqia AG’s base prospectus approval from the Liechtenstein Financial Market Authority. Approval from the FMA allows the company to issue crypto-backed exchange-traded notes across the European Union.

YADA adds to the growing crypto ETN market in the EU, with a third of the 139 products listed on the Vienna Stock Exchange. Increased adoption of digital assets as investment vehicles has led to the availability of over 220 crypto ETPs globally. These products currently account for more than $216 billion in assets under management.

Among these ETPs are U.S. spot Bitcoin ETFs, which have recorded over $121 billion in AUM since their debut in January 2024. Experts attribute the positive market sentiment to Trump’s victory and assumption of office.

Spot Bitcoin ETFs have seen over $4.2 billion in net inflows year-to-date, reflecting the broader optimism surrounding the market.

David Sacks has introduced a new perspective on non-fungible tokens (NFTs) and meme coins, describing them as a distinct class of digital assets.

In an interview with Fox Business, the AI and crypto czar spoke on the growing complexity of classifying digital assets, categorizing the two as collectibles.

Digital Asset Classification

“When you talk about digital assets, it could mean many things… you’re talking about a vast area of innovation,” Sacks stated in the interview. He explained that virtual assets cover a broad spectrum, including securities and commodities, placing NFTs and meme coins in the collectible category.

This classification could influence the way the two are perceived, shifting the focus from their volatility to their potential as items of cultural and commemorative significance. Sacks elaborated on this idea, comparing such assets to traditional memorabilia.

Speaking on the Solana-based Official Trump (TRUMP) meme coin, he said:

“I think the Trump coin is a collectible. It’s like a baseball card or a stamp. People buy it because they want to commemorate something.”

However, he clarified that his statements should not be interpreted as a regulatory position.

NFT and Meme Coin Legitimacy Debate

The legitimacy of non-fungible tokens and meme coins is still a hot topic. Last August, NFT marketplace OpenSea received a Wells notice from the SEC over claims that such assets on its platform might be regarded as unregistered securities. In December, the gaming-focused NFT project Cyberkongz was sent a similar warning from the regulator.

This debate has intensified with the recent launches of the official TRUMP and MELANIA meme coins. Senator Elizabeth Warren, a crypto skeptic, has urged federal regulators and the Office of Government Ethics to investigate the TRUMP meme coin. In a January 22 letter, she alleged it had enriched the President and provided a means for crypto funds to flow to him.

At a recent press briefing, Trump downplayed the situation by saying he did not know whether he had benefited financially from the project and claimed to have no knowledge of the coin’s value.

The introduction of these tokens also caused some constitutional compliance concerns, with Zack Guzman from Coinage noting that while the emoluments clause prohibits presidents from profiting from their office, meme coins challenge these existing rules.

Meanwhile, billionaire investor Mark Cuban previously dismissed the Trump project as a gamble, suggesting it could harm the crypto industry’s reputation, especially if proper regulations were not in place. Similarly, former Coinbase CTO Balaji Srinivasan described such tokens as speculative assets, famously calling them a “zero-sum lottery.”

The US Securities and Exchange Commission (SEC) announced on Thursday, January 23, the rescission of Staff Accounting Bulletin (SAB) No. 121, a directive that had imposed stringent accounting requirements on crypto custody for US banks and financial institutions. The move, encapsulated in the newly issued SAB 122, is poised to serve as a more substantial catalyst for Bitcoin’s price dynamics than the anticipated US Bitcoin Reserve (SBR), according to several industry experts.

Implications For Bitcoin

Originally enacted in 2022, SAB 121 mandated that banks classify customer-held cryptocurrencies as liabilities on their balance sheets. This classification significantly increased the operational costs and complexities for financial institutions, effectively deterring them from offering crypto-related services. Thus, the requirement acted as a barrier, limiting the integration of Bitcoin and other cryptocurrencies into mainstream banking operations.

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The withdrawal of SAB 121 through SAB 122 effectively removes this accounting impediment. SEC Commissioner Hester Peirce lauded the decision on social media, stating, “Bye, bye SAB 121! It’s not been fun: http://SEC.gov | Staff Accounting Bulletin No. 122.”

The Bitcoin community has responded favorably to the SEC’s decision. Andrew Parish, founder of x3, emphasized the significance of SAB 122 on X, asserting, “Rescinding of SAB 121 is a bigger catalyst for Bitcoin than the SBR. Bookmark this post.” Similarly, Fred Krueger, founder of Troop, highlighted the broader market implications, noting, “SAB 122 is extremely good for Bitcoin. More significant than the Bitcoin Reserve, which is also coming. Now watch the Banks start accumulating.”

Vijay Boyapati, an Ex-Google engineer and the author of The Bullish Case for Bitcoin, further elaborated on the transformative potential of the SEC’s action, stating, “It really is hard to emphasize how huge a sea change we’re witnessing. We went from the worst conceivable anti-Bitcoin, anti-innovation, anti-growth, anti-business administration to the most friendly Bitcoin administration you could hope for. This is 100% not priced in.”

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Michael Saylor, Executive Chairman of MicroStrategy, succinctly captured the market sentiment with his tweet: “SAB 121 has been rescinded, allowing banks to custody Bitcoin. 🚀” This aligns with Saylor’s previously outlined tgree catalysts for Bitcoin reaching $1 million per coin, where the facilitation of traditional bank custody stood as last open m factor.

The regulatory easing is expected to catalyze increased institutional participation in the BTC and crypto market. Brian Moynihan, CEO of Bank of America—the second-largest US bank by assets—addressed the potential for broader crypto adoption during an interview with CNBC’s Andrew Ross Sorkin at the World Economic Forum in Davos, Switzerland. Moynihan stated, “If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard on the transactional side of it.”

This statement aligns with the SEC’s latest directive, indicating that banks are now more likely to develop and offer crypto services, including custody solutions, which were previously constrained under SAB 121. The removal of these regulatory hurdles is anticipated to enhance the liquidity and accessibility of Bitcoin, potentially driving a new wave of demand similar to the spot ETFs in January last year.

At press time, BTC traded at $105,466.

Featured image created with DALL.E, chart from TradingView.com

The Labour Government is “considering bringing forward increases” to the state pension age, according to analysts, as recent research suggests it needs to rise to 71 by 2050 for payments remain affordable.

A study by the International Longevity Centre (ILC) has warned that the UK faces “widening demographic imbalances” that will put increasing pressure on Government finances.

Analysts are warning the state pension is becoming increasingly unaffordable

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“The Government will shortly be considering whether to bring forward the following rise to age 68, which is currently scheduled for 2044,” he said.

Gribb told The Express these increases are justified in principle, noting they help control costs for taxpayers.

“While growth in life expectancy has stalled recently, over previous decades it rose substantially,” he explained.

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The retirement expert argues that as people live longer, raising the state pension age is a logical step. However, Gribb emphasises that such changes must be implemented carefully, considering their social impact.

The IFS expert warns that pension age increases disproportionately affect poorer people in their mid-60s. “It is poorer people in their mid 60s who are hit most by state pension age increases. Most of these people are not in employment, some as a result of poor health,” Gribb said.

He highlighted that many in this group lack alternative financial resources. “They also often have little savings or private pensions to fall back on,” he explained.

Previous pension age increases have had measurable negative effects on this demographic. “We know that poverty rates rose substantially among those in their mid 60s following previous pension age increases,” Gribb noted.

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Given these impacts, he argues there is “a good case for the government to do more to support this group.” Gribb outlines two potential approaches for the government to support those most affected by pension age changes.

The first option involves increasing Universal Credit support for those within a year of pension age. “A boost to their benefits costing £600 million a year would reduce poverty by around 30,000 households,” he said.

This represents just one-tenth of the savings from raising the pension age by one year. Alternatively, the Government could target additional Universal Credit specifically to those receiving disability benefits.

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Britons are concerned about potential changes to the state pension age

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This more focused approach would cost around £200 million but “would still make a real difference to many,” according to Gribb. Both options aim to provide extra support for low-income individuals while maintaining the cost-saving benefits of pension age increases.

Supporting the poorest could help maintain broader public backing for necessary pension age increases, according to the IFS analysis. Gribb emphasises that the government needs to “maintain general support for the principle of a higher pension age as life expectancy rises.”

Targeted support for the most vulnerable could be key to achieving this balance.

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“Supporting the poorest could help maintain this support, and help protect the incomes of some of those who struggle to work in their late 60s,” Gribb said.