Quick Take

• Facebook uses Coinbase Custody for its new Novi digital wallet.

• Coinbase announces a multi-year partnership with the NBA and WNBA.

• Martha Stewart cashes in with the launch of her own NFT collection.

• NY’s Attorney General orders Nexo and Celsius to cease operations amid securities claims.

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Facebook Partners With Coinbase For Crypto Custody

Facebook has selected Coinbase as its custody support provider for the pilot release of its native digital wallet called Novi. The pilot application is currently available for users in the U.S. and Guatemala. Users are able acquire the Pax Dollar (USDP) stablecoin through their Novi account, which Novi will hold on deposit with Coinbase Custody. Novi users are then able to transfer the USD pegged stablecoin between each other instantaneously.

The Paxos Standard Token is a stablecoin that runs on Ethereum. The release of Novi comes after years of silence over the launch of Libra and Facebook’s long-anticipated cryptocurrency called Diem. Plans for the launch of Libra were scrapped after scrutiny and disapproval from congress. Despite the absence of Facebook’s native cryptocurrency, Facebook confirmed in a press release that the project is still planned, stating: “Our support for Diem has not changed. We intend to migrate Novi to the Diem payment network once it receives regulatory approval.”

Coinbase Custody currently manages more $180 billion worth of crypto assets on its platform. Novi users will also benefit from Coinbase Custody’s $320 million commercial crime insurance policy. U.S. Sen. Elizabeth Warren has since commented on the announcement, urging Mark Zuckerberg to immediately discontinue the program. 

Coinbase Partners With NBA and WNBA

Coinbase also announced a multi-year partnership with the NBA and WNBA as the league’s first and exclusive cryptocurrency platform partner. Coinbase will have a brand presence during nationally televised games as part of the deal. Coinbase will create interactive experiences to engage with the NBA and WNBA’s community and athletes.

Martha Stewart Drops NFT Collection

Martha Stewart has launched her own collection of ethereum-based NFTs. The NFTs are displayed on a site called Fresh Mint, however the assets are actually sold through OpenSea. The first collection of NFTs are Halloween-themed, featuring carved pumpkins and photos of Stewart wearing costumes.

The drop also features 1-of-1 pumpkin carving artwork giving buyers the potential of having their NFT carved on a pumpkin alongside a signed note from Stewart. Winners of the custom carved pumpkins will receive both the NFT and the physical artwork. Stewart is a frequent collaborator of Snoop Dogg, who remains an active investor in the space.

Obol Network Raises $6.15 Million

Staking protocol Obol Network has raised a $6.15 million seed funding round led by Ethereal Ventures. The round also included participation from Coinbase Ventures and Acrylic Capital among others. Founded by ConsenSys’ former head of global product strategy Collin Myers, Obol Technologies will enable liquidity platforms such as Lido Finance to operate multiple staking validators.

Obol will use secret shared validators (SSV), a primitive technology created in collaboration with researchers at the Ethereum Foundation. Similar to the structure of a multisig wallet, SSV helps split a validator key between multiple operators. Myers says the longer term vision is to prevent single operator failure in the event of staking providers going offline.

Obol will use the funding to expand its team of three to around 12. The project also aims to launch a testnet for staking on Ethereum 2.0 by early next year. ConsenSys co-founder Joseph Lubin says the majority of staking in public networks will be done in a multi-provider fashion, through the use of SSV.

NY AG Sends Nexo and Celsius Cease And Desist

New York Attorney General Letitia James has directed crypto lending platforms Nexo and Celsius to cease operations in the State of New York. The announcement follows previous warnings to unregistered cryptocurrency platforms for “unlawful activity” in the state.

The letter claims that the crypto lending products offered by Nexo and Celsius are securities under the Martin Act. The firms would need to register as brokers with the Office of the Attorney General (OAG) in order to offer crypto lending products to New Yorkers.