Cosmos-based networks Umee and Osmosis have announced plans to merge and create a so-called "DeFi Hub." Meanwhile, Brazilian bank Itau Unibanco has reportedly launched a cryptocurrency trading service for its clients as part of its investment platform, and Bitcoin has reached the $40,000 milestone, its highest price level in 19 months.

Cosmos-based networks announce merger plans

Umee and Osmosis, two networks that operate on the Cosmos chain, have announced plans to merge through a software upgrade and create a "DeFi Hub" for the entire Cosmos ecosystem. 

According to the Dec. 4 announcement, the protocol merger will allow Umee's lending app and Osmosis' decentralized exchange to exist on the same chain. The teams say this will allow the exchange to offer advanced features such as margin trading, shorting, stablecoin pools, interchain flash loans, and MEV markets.

“The combined architecture of both chain functionality will open up the door for flash loans and new forms of MEV on the same DeFi Hub,” said Sunny Agarwal, Osmosis' co-founder.

Osmosis made news in October by allowing a bridged version of Bitcoin to be traded on the exchange.

Brazil’s largest bank Itau Unibanco launches Bitcoin trading

Brazilian bank Itau Unibanco has launched a cryptocurrency trading service for its clients as part of its investment platform, Reuters reported on Dec. 4.

Itau, the largest bank by assets in Brazil and one of the leading lenders in Latin America, is debuting crypto trading with Bitcoin and Ether, digital asset head Guto Antunes reportedly said. In the future, the bank plans to add more cryptocurrencies for trading, he noted.

“It starts with Bitcoin, but our overarching strategic plan is to expand to other crypto assets in the future,” Antunes stated, adding expansion would depend on regulatory developments.

The move reportedly comes about a month after two local players announced they were leaving the crypto market. According to Reuters, brokerage and investment company XP recently shut down its crypto services without citing its reasons. The financial services firm PicPay, owned by conglomerate J&F, which also controls meatpacker JBS, cited regulatory uncertainties.

Bitcoin price tops $40K, its highest level since April 2022

Bitcoin has reached the $40,000 level for the first time since late April 2022, climbing around 2% in 24 hours.

Bitcoin surged from under $39,500 to strike above $40,000 on Dec. 3 to hit a 19-month high, according to CoinGecko data.

It also marks a new year-to-date high for Bitcoin, which is up over 140% since Jan. 1.

In a Nov. 30 note, Matrixport research head Markus Thielen predicted that Bitcoin would hit over $60,000 by April next year and $125,000 by the end of 2024.

Thielen said the last three crypto bear markets saw a following three year bull cycle and an analysis suggested "another three years of this bull market, with 2023 being the first year."

“Historically, the years when Bitcoin mining rewards were halved were generally bullish,” Thielen explained. Bitcoin is expected to again halve — when mining rewards are cut by 50% — in mid-April 2024.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.