• The US Federal Reserve denied a request from crypto bank Custodia Bank to join the system.
• Top Shot creator Dapper Labs is laying off 20% of its full-time staff and Twitter founder Jack Dorsey’s payment firm Block reported that it generated a gross profit of $1.66 billion in Q4 2022.
• Israeli blockchain chip startup Chain Reaction raised $70 million in a funding round and DeFi protocol Huma announced the close of an $8.3 million seed round.
US Fed Denies Custodia Bank’s Membership Request
The US Federal Reserve denied a request from crypto bank Custodia Bank to reconsider its membership application to the Federal Reserve System. Per the press release, “the Board previously concluded that the firm’s application as submitted was inconsistent with the required factors under the law. The Board’s rules permit an applicant to request that the Board reconsider its application decision.”
Dapper Labs Lays Off 20% of Staff
Top Shot creator Dapper Labs is laying off 20% of its full-time staff, according to a letter to staff sent by founder and CEO Roham Gharegozlou. “We are restructuring the Dapper Labs organization to improve our focus and efficiency, strengthening our position in the market and better serving our communities,” he said. The company will provide compensation, health continuation benefits, extended exercise windows for equity stock options, mental health benefits, and job search support, the letter stated.
Block Reports $1.66BN Profit for Q4
Twitter founder Jack Dorsey’s payment firm Block reported that in the fourth quarter of 2022, it generated a gross profit of $1.66 billion, up 40% year-over-year. “Square generated gross profit of $801 million, up 22% year over year, and [Block-developed payments app] Cash App generated gross profit of $848 million, up 64% year over year,” the Q4 2022 shareholder letter said.
Chain Reaction Raises $70M Round
Israeli blockchain chip startup Chain Reaction raised $70 million in a funding round led by Morgan Creek Digital, bringing the total raised to $115 million