Eterna's Insights - August 2024

Crypto Tap-to-Pay Coming Soon

After years of regulatory pressure, Apple announced on that it will allow third-party developers to access the NFC payment chip and Secure Element APIs on iPhones. Previously, Apple had restricted access due to security concerns. This change will enable new use cases, including in-store payments, transit fares, work badges, keys, and reward cards, with government ID support coming later.

Developers must enter a commercial agreement with Apple, meet industry standards, and adhere to Apple's security protocols to access the system. The rollout will begin with iOS 18.1 in select countries, excluding the EU.

Circle CEO Jeremy Allaire reacted positively, suggesting that this could enable crypto wallets to use NFC for transactions on iPhones, though he clarified that Circle has no formal relationship with Apple.

Layer 1 blockchain from Kakao and LINE launches mainnet

Kaia, an EVM-compatible Layer-1 blockchain created by messaging app giants Kakao and LINE, has officially launched its mainnet, offering ultra-fast transactions and low gas fees. The blockchain aims to integrate with Kakao and LINE, which together boast over 250 million users, enabling developers to build Telegram-style mini dapps on LINE.

Kaia targets the creation of an ecosystem that supports DeFi, gaming, real-world assets, and web3-based messenger apps. It also introduced a support program offering up to $1.2 million in resources per project, including marketing, tech, and business support, as well as future token generation events and liquidity support.

MetaMask Card brings crypto payments to the real world

MetaMask has partnered with Mastercard to launch the MetaMask Card, a debit card linked directly to users' MetaMask wallets, which currently boast 30 million monthly active users. This card enables users to spend their digital assets at any location where Mastercard is accepted, helping to bridge the gap between crypto and traditional payment systems. Initially available as a limited pilot for a few thousand users in the UK and European Union, the card is expected to roll out more widely in these regions by the end of the year.

OpenSea receives a Wells Notice from the SEC

OpenSea CEO Devin Finzer announced that the NFT marketplace has received a Wells Notice from the SEC, indicating that the agency may soon file an enforcement action against the company. According to Finzer, the SEC believes that NFTs on OpenSea's platform may be considered securities.

In his statement on X, Finzer expressed shock at the SEC's stance, calling it a move into "uncharted territory" that could "stifle innovation" and harm thousands of NFT artists who lack the resources to defend themselves. OpenSea has pledged $5 million to support NFT creators and developers with legal defense against potential SEC actions.

The SEC has previously settled cases involving NFT sales with entities like Impact Theory and the television show Stoner Cats, alleging unregistered securities offerings.

Sony Group has developed new Ethereum Layer-2 network “Soneium”

Sony Block Solution Labs, part of the Sony Group, has developed a blockchain called "Soneium" aimed at becoming a core infrastructure for Web3. Their goal is to make Soneium publicly accessible and create new services by integrating it with Sony's existing businesses and intellectual property. Soneium will allow decentralized interaction with Web3 games, NFT marketplaces, and entertainment services via compatible apps, managed autonomously through digital wallets. Sony plans to foster new use cases to attract mainstream users and empower creators by offering tools for content protection and engagement. A testnet for app developers will soon be launched, with a future public mainnet planned to broaden Web3 access and integrate it into daily life. Sony aims to make Web3 accessible to a wider audience, leveraging their global presence. They believe Soneium will enable creative innovation and transform the digital content landscape.

Eterna Portfolio Company Spotlight:

Microsoft-backed Space and Time raises $20 million to merge AI and blockchain

We recently announced our follow-on investment in Space and Time (SxT), a decentralized data platform. The $20m Series A investment is part of their commitment to supporting Web3 infrastructure, particularly for scalable and secure data solutions. Space and Time is empowering the community to own their future in an AI-powered world by providing the tools they need to build sophisticated, data-driven applications, tokenize them onchain, and win in the AI economy. Space and Time's technology is seen as vital for enhancing data processing and enabling smart contracts to work with large datasets in various industries, including finance and gaming. Eterna Capital believes Space and Time’s innovation will drive the future of decentralized applications.

For more details, you can visit the full blog here.