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Ethereum's Merge and its Implications

Ethereum is about to undergo its most profound upgrade to date. The Merge will move Ethereum away from securing its transactions through an energy-intensive mechanism (known as Proof of Work) to a capital-intensive security model (Proof of Stake). The main goal of this change is to make the network more sustainable in terms of energy, reducing consumption by 99% according to estimates from the Ethereum community. In the most recent Solidus Intelligence report, we analyze the implications of this change for the Ethereum network.

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Asset Manager Brevan Howard creates hedge fund focused on Digital Assets
Brevan Howard, asset manager with $25B in AUM, reported to the SEC the structure of a Digital Assets focused fund that has raised $184.15M since its launch in April and has no defined fundraising ceiling. According to rumors, they intend to form the largest Digital Assets hedge fund to date, managing US$ 1B.

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Singapore's Multi-Family Office to invest US$ 100M in Digital Assets fund
Whampoa Group, Singapore's original Multi-Family Office with investments in technology companies globally, has revealed its intention to invest US$ 100M in a venture capital fund focused on startups in the Digital Assets Ecosystem.

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Asset Manager Franklin Templeton prepares institutional SMA for Digital Assets
Asset Manager with $1.4T in AUM, Franklin Templeton, is working to offer separately managed accounts (SMA) for Digital Assets for US professional investors following its investment in Eaglebrook Advisors.

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U.S. dollar at its best level in 20 years
Despite historic levels of inflation in the U.S., coupled with recession risks, the U.S. Dollar Currency Index indicates that the national currency is at its highest point since May 2002. This index reflects the performance of the U.S. dollar relative to a basket of foreign currencies consisting of the euro, yen, pound, Canadian dollar, Swedish krona and Swiss franc.

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European Central Bank makes largest interest rate hike in its history
Since the European Central Bank took over monetary policy in the eurozone in 1999, it has never raised interest rates by 75 basis points. As a measure to counter inflation, the monetary authority announced the largest hike in its history, reaching interest rates of 1.25% for refinancing operations, the bulk of the banking system's liquidity.

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Fed's Jerome Powell reaffirms aggressive interest rate policy
"The longer inflation remains above target, the risks rise that the public will begin to perceive high inflation as the norm”, Fed Chairman Jerome Powell said during a Q&A session at the Cato Institute. There are broad expectations that the Fed will raise interest rates again by 75 basis points by the next meeting on Sept. 20-21.

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Russia would legalize the use of Digital Assets for international trade
Russia's Central Bank, in conjunction with the Ministry of Finance, has reportedly agreed to advance a regulation for the use of Digital Assets in cross-border settlements, due to the pressure exerted on the country by international economic sanctions. According to a local news agency, Russia would have advanced in talks with allied countries to create bilateral settlement platforms in tokenized instruments.

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Regulation for Digital Assets moves forward in Uruguay
The Uruguayan Executive sent to the country's Parliament a bill that would give the Central Bank of Uruguay (BCU) the authority over the Digital Assets market under the category of financial instruments. In this way, service providers with Digital Assets would be supervised by the Superintendence of Financial Services.

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Ethereum activates its last update before the Merge
The Bellatrix update was successfully activated in Ethereum's Beacon Chain, a preparatory step to be able to maintain the network's historical record of transactions in its migration to the Proof of Stake validation mechanism.

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SEC Chairman Supports CFTC Oversight of Bitcoin
Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC) expressed his support for the Commodities Futures Trading Commission (CFTC) to oversee activities concerning the digital asset bitcoin, in his participation during an SEC event.

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Coinbase participates in lawsuit against the Treasury Department for sanctions against Tornado Cash
One of the most important exchanges in the Digital Assets industry, Coinbase, is backing and funding a lawsuit against the U.S. Treasury Department for having included in its sanctions list the code of the Ethereum transaction mixer Tornado Cash, which, they argue, is not a legal entity that can have legal liability.

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SEC to establish new office for Digital Assets fillings
The new SEC office will be under the Division of Corporation Finance, in charge of publicly traded companies, and will handle fillings and consulting for companies tied to Digital Assets considered securities.

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White House Report Urges Digital Asset Miners to Use Renewable Energy
A report from the White House Office of Science and Technology Policy urges a nationwide policy to reduce greenhouse emissions linked to Digital Assets by pushing mining companies to use renewable energy sources. If measures are ineffective, they urge exploring executive actions to limit or eliminate the use of the Proof-of-Work (PoW) mechanism.

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KPMG sees other countries adopting Bitcoin such as El Salvador and the Central African Republic
In its latest report on the state of financial technologies, the exponent of the Big Four of professional services firms, KPMG, recognized the maturity reached in the Digital Asset Ecosystem, ensuring that El Salvador opened interest in using Bitcoin as a strategy of monetary sovereignty in the face of the hegemony of the U.S. dollar.

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Solidus Capital is the leading firm in Digital Assets, which provides exclusive, agnostic, and institutional services such as Liquidity, Custody Solutions, Wealth (Private Accounts and Portfolio Management), Multi-Strategy Funds, Private Placements, and other sophisticated products in conjunction with bespoke accompaniment to High Net Worth Individuals, Family Offices, Companies, Wealth Managers and Banks.
 
By relying on Solidus' services, investors avoid the classic fatal mistakes:

- Lacking information in the context and moments of the market  

- Executing operations inefficiently  

- Using unreliable service providers and infrastructure  

- Closing of accounts and freezing of funds

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