Interbank market news scan: New market maker in crypto; threat to liquidity in bond markets; ether and the merge.

News Scan as of 2:51 pm EDT

Cryptocurrency. Market Maker. De-Fi. The decision by blockchain network Tron to name Wintermute as the decentralized finance (DeFi) ecosystem’s official market maker is likely to help boost trading volumes in a network that’s already growing faster than rivals. Source: CoinDesk. https://www.coindesk.com/business/2022/09/14/crypto-network-tron-set-to-capitalize-on-defi-boom-with-wintermute-as-market-maker/

Cryptocurrency. Ether. The Merge. More investors in Ether, the native token of the most commercially important crypto network, are expected to lock up their tokens in special digital wallets that earn their owners a return once the network transition takes place as soon as later today. But they won’t be able to take them out, at least not for a while. Source: Bloomberg. https://www.bloomberg.com/news/articles/2022-09-14/-illiquidity-risk-is-a-side-effect-of-ethereum-crypto-upgrade?utm_source=google&utm_medium=bd&cmpId=google&leadSource=uverify%20wall.

Liquidity. Bond Market. Federal Reserve. The Federal Reserve could be forced to slow the reversal of its asset purchase programme as deteriorating bond market liquidity could become worse than during the COVID-19 pandemic, MSCI has warned. Source: ETF Stream. https://www.etfstream.com/news/us-treasury-market-liquidity-to-be-worse-than-covid-19-levels-msci-warns/.

Foreign exchange. US dollar. With the strong dollar set to persist throughout 2022 and possibly beyond, now is the time to ask why the dollar has risen so sharply and examine the steps companies can take to hedge against heightened currency risk. Source: CFO. https://www.cfo.com/credit-capital/capital-markets/2022/09/u-s-dollar-fx-currencies-hedging-strategies/

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