• Deutsche Bank shares fell 11% on Friday, 26% from a month prior.
• Cost of default insurance for the bank surged to four-year highs.
• The decline in stocks was coupled with other European banks‘ stocks, including Commerzbank and Societe Generale.
Deutsche Bank Shares Plunge
Shares in Deutsche Bank – Germany’s largest lender – began to crash on Friday as financial industry fears continue to spread following a string of global bank failures this month. The fall began to accelerate after the price of Deutsche Bank’s five-year Credit Default Swaps began surging on Friday above 220 basis points (bps). That’s up from 142 bps just two days prior, and its highest point since late 2018, according to S&P Global Market Intelligence.
Default Insurance Soars
The cost of default insurance on the bank’s potential collapse has risen to four-year highs. Soaring CDS costs indicate fear among investors about the bank’s stability, despite the firm’s financial results showing 10 consecutive quarters of profit. The bank reaped $5.7 billion EUR on after-tax profit in 2022.
Credit Suisse Falls
Fears follow the collapse of Silicon Valley Bank (SVB) earlier this month, prompting the Federal Reserve to bail out the bank’s depositors as part of a „systemic risk exception“ shortly afterward. Panic soon crossed the Atlantic when Swiss banking giant Credit Suisse fell by 6%, resulting in an emergency liquidity injection by Switzerland’s central bank – Swiss National Bank – which is ultimately owned by taxpayers.
Other Banks Affected
The fall in Deutsche Bank shares was coupled by declines in neighboring European bank stocks, including Commerzbank (-5.6%) and Societe Generale (-6.48%). This market instability has been further exacerbated by uncertainty surrounding Brexit negotiations and slow economic growth across Europe amid rising inflation rates and sluggish employment figures throughout 2021 and 2022 so far.
The future remains uncertain for Deutsche Bank as well as other major lenders across Europe amidst increasing market volatility and nervousness amongst investors due to recent high profile banking failures around the world this year alone
• SVB Financial Group, a tech-supporting bank, has filed for Chapter 11 Bankruptcy Protection.
• The filing was sent to the US Bankruptcy Court for the Southern District of New York and comes as Bitcoin’s latest price push took it to $27,000.
• The bank has $2.2 billion of liquidity and $3.3 billion in unsecured notes that are only recourse to SVB Financial Group.
SVB Financial Group Files for Chapter 11 Bankruptcy Protection
The California-based tech-supporting bank SVB Financial Group has officially announced filing for a „court-supervised reorganization under Chapter 11“ a week after its shares were halted and the FDIC had to intervene. This comes amid Bitcoin’s latest price push that drove it to a multi-month high at $27,000.
The filing was sent to the US Bankruptcy Court for the Southern District of New York and outlines details about the funds of SVB Securities and SVB Capital that are not included in the Chapter 11 filing and continue to operate „in the ordinary course.“ The PR by SVB Financial Group also states that SVB Private is no longer affiliated with them and is now operating under the jurisdiction of Federal Deposit Insurance Corporation (FDIC).
Financial Resources Available
The company declared having $2.2 billion of liquidity as well as additional cash and interests in SVB Capital and SVB Securities which will be used to explore „strategic alternatives“. Meanwhile, their debt is believed to be $3.3 billion in aggregate principal amount of unsecured notes, which are only recourse to SVB Financial Group.
These developments come after last week when Silicon Valley Bank’s shares were halted from trading on Nasdaq following news about its financial troubles due to deteriorating assets quality highlighted by FDIC’s intervention into its operations. Following this news, Silicon Valley Bridge Bank N.A., acted as successor entity taking over from Silicon Valley Bank N.A., however without including any part of it in this bankruptcy processs filed by SVG Financial Group today..
In conclusion, we see another case where BTC’s recent market performance has been accompanied by stories such as these relating corporate bankruptcies related or not linked with crypto investments or activities involving cryptocurrency markets
• Investments in African countries are on the rise and Direct Property Africa Token (DPAT) is a new protocol that simplifies and secures them.
• DPAT connects investors with African real estate and infrastructure projects, allowing users to vote on the types of constructions, who performs them, and where they are situated.
• It also provides transparency, security, immutable transactions, tax advantages or other cost-saving procedures related to trading offshore assets.
Growing African Economies
The past years have seen Asia, North America, and Europe as the main engine of innovation – especially crypto adoption. However, many countries from Africa have recently joined the digital asset bandwagon for various reasons such as lack of basic financial services or devaluation of local currency. This has resulted in an increase in investments in African states.
Direct Property Africa Token (DPAT)
To facilitate these investments in a simplified and secure way – A new protocol has been introduced called Direct Property Africa Token (DPAT). It allows people to invest in African real estate and infrastructure projects located in large cities like Cape Town (South Africa) or Accra (Ghana). The token disperses governance and ownership to users through voting on the type of constructions being done by whom and at what location. Apart from this it also offers transparent transactions, security measures along with immutable transaction history – thus providing investors with a safe environment for their investments. Additionally it offers tax advantages or other cost-saving procedures related to trading offshore assets.
Benefits of Investing via DPAT
Investing via DPAT comes packed with numerous benefits such as:
1) Governance & Ownership: Users can easily vote on what types of constructions should be built by whom and where they should be situated without worrying about any third party interference.
2) Transparency: All transactions made using DPAT will be recorded immutably on blockchain technology providing full transparency between all parties involved while ensuring security at the same time.
3) Tax Advantages: Investors can benefit from certain tax advantages or other cost-saving procedures related to trading offshore assets when investing through DPAT..
In conclusion, DPAT is an innovative platform that allows people to invest safely in the growing economies of African countries without having to worry about any third party interference or lack of financial services. Its transparent nature ensures all transactions are recorded immutably while its taxation policies provide additional benefits for overseas investors looking for lucrative opportunities within Africa’s booming markets
• Multichain and OKX Wallet have recently partnered to expand cross-chain capabilities in the blockchain world.
• As part of the partnership,OKX DEX has aggregated liquidity of Multichain, while OKX Discover, a one-stop platform for discovering decentralized applications, has supported Multichain.
•The integration of Multichain with OKX Web3 Wallet offers a new level of interoperability and convenience for users.
Multichain and OKX Wallet Partner to Expand Cross-Chain Capabilities
The partnership between Multichain and OKX Wallet enables users seamless access to the Web3 ecosystem and the ability to transfer tokens across different chains without switching wallets.
As part of the partnership, OKX DEX has aggregated liquidity of Multichain, while OKX Discover, a one-stop platform for discovering decentralized applications, has supported Multichain. Additionally, Multichain has successfully integrated the OKX Wallet web extension on its website and product.
The integration of Multichain with OKX Web3 Wallet offers a new level of interoperability and convenience for users providing them with unlimited tokens and dApps in more than 40 chains and roll-ups.
Unlimited Access to Decentralized Applications
Users can gain enhanced access to the Web3 ecosystem including access to 10,000+ third-party DApps such as crypto games through the OKX Discover Portal.
< p > The partnership will allow users to transfer tokens across different chains without switching wallets resulting in a much smoother user experience. p > < h 2 > Major Boost To Development h 2 > < p > This partnership will be a major boost to development in terms of enhanced access to assets in different blockchains as well as improved interoperability between networks. p >