The cryptocurrency market has turned bearish again, with Bitcoin (BTC) struggling to stay above $20,000. The latest US consumer price index data, signaling chances of another 75bps rate hike by the Fed, has turned the financial markets bearish, and the crypto market was not an exception. While preparing this report, Bitcoin was trading at $20,040, down 1.80% in the past 24 hours. Ethereum (ETH) had gained 1.20% to trade at $1,610. XRP had inched up 0.20% to trade at $0.3350.
The list of major cryptos, which have gained in the last 24 hours, include Dogecoin (DOGE – $0.0603, 0.2%) and ChainLink (LINK – $7.26, 1.60%).
The list of major cryptos, which have lost ground in the last 24 hours, include Polygon (MATIC – $0.8465, -1.70%), Uniswap (UNI, $6.00, -2.20%), Solana (SOL, $33.38, -0.40%), Avalanche (Avax- $18.69, -2.40%), Stellar (XLM, $0.1031, -1.90%), Binance Coin (BNB – $274.99, -1.40%), Internet Computer (ICP, $6.19, -3.90%), EOS (EOS – $1.43, -4%), Bitcoin Cash (BCH, $117.06, -1.80%), VeChain (VET, $0.0234, -1.70%), Tezos (XTZ, $1.54, -0.30%), IOTA (IOTA – $0.2643, -2.30%), Cardano (ADA, $0.4720, -0.20%), Shiba Inu (SHIB, $0.00001204, -1.80%) and Polkadot (DOT, $7.03, -1.70%).
Government level initiatives
SBI Digital Asset Holding joins the Project Guardian venture
In May, the Monetary Authority of Singapore (MAS) revealed Project Guardian, which intends to study institutional level DeFi (decentralized finance) on a public blockchain. At that time, the partakers in the project were DBS Bank, JP Morgan, and Marketnode, the tokenization-focused partnership venture between Temasek and the Singapore Exchange (SGX). A week ago, Japan’s SBI Digital Asset Holding joined the venture.
Two key DeFi innovations are lending and borrowing platforms based on smart contracts such as Compound and Aave and Uniswap, which falls under the category of automated market making (AMM) for trading. Nevertheless, all these platforms are permisssionless platforms, whereas project Guardian is a permissioned platform targeting the wholesale market.
Automation without intermediaries is the defining DeFi characteristic that provides better efficiency. By cutting expenses, financial services may become more affordable for all investors. And rather than limiting certain investments to large denominations, fractionalization may expand accessibility. Another advantage is that automation facilitates trading and lending 24/7.
Private sector initiatives
Japan Continental Tire to go ahead with the Project Tree blockchain drive
Japan-based Continental Tire, as a part of eco-friendly initiatives, intends to go ahead with the Project Tree blockchain drive to guarantee that a portion of its AllSeasonContact tires utilizes responsibly bought natural rubber. Project Tree is a venture rolled out by the country’s business behemoth ITOCHU, which runs rubber processing facilities in Indonesia (Sumatra) and the UK (Kwik Fit network of tire fitters). The sustainability initiative was launched in December 2021.
Project Tree tires are offered at a premium, and the funds are channeled to farmers by offering requisite farm tools, fertilizer, and training. The Indonesian rubber firm utilizes a blockchain-based platform for purchasing. This ensures adequate and relevant data (origin of rubber, etc.) are collected, and tracking of tires made using rubber from Project Tree is carried out efficiently at all stages (from raw material to final sales).
Notably, 60% of the rubber used in the world originates from Indonesia and Thailand. Furthermore, 70% of the natural rubber is used for tire production.
Digital Dollar Project to launch CBDC Technical Sandbox Program
The Digital Dollar Project is rolling out a central bank digital currency (CBDC) Technical Sandbox Program next month. In this regard, the private sector initiative is collaborating with Digital Asset, Knox Networks, EMTECH, and Ripple to study cross-border payments.
Jennifer Lassiter, executive director of The Digital Dollar Project (DDP), stated that the intention is to “resolve essential queries on the manner in which the technology may function, the challenges we intend to tackle, and the final corporate and human benefits we seek.”
The Digital Dollar Project was established in January 2020 by Accenture and former Chair of the Commodity Futures Trading Commission (CFTC), Christopher Giancarlo’s Digital Dollar Foundation. In 2021, Accenture came forward to finance five of the CBDC trials of DDP.
In April, the DTCC, the world’s biggest securities settlement institution, revealed its collaboration with the DDP on a stock settlement venture to trial a tokenized CBDC. The DTCC’s Project Lithium intends to study atomic settlement, implying simultaneous exchange of stock and money.
Marui sells blockchain-powered corporate bonds to its investors
Marui (OIOI), the Japan-headquartered department store chain, has sold blockchain-powered corporate bonds directly to its investors without the involvement of third parties. However, Nomura acted as a financial consultant. The initial issuance carried out on June 20 was for slightly more than 120 million yen (or $860,000). The firm had plans to raise 100 million yen through the issue of bond. Interestingly, the bond got oversubscribed by 20 times. Another tranche of comparable size is planned to be released soon.
In addition to the use of distributed ledger technology (DLT), the corporate bond issuance carried a lot of significance. The amount raised through the release of a one-year bond is planned to be used for social purposes instead of Marui’s in-house use.
For the bond issuance, the retailer collaborated with Gojo & Company, which has $649 million worth of assets under management and is focused on financial inclusion. In the final leg of June, Marui committed one billion yen that Gojo utilized for financing Indian microfinance partners.
Marui’s bond, carrying a 1% yield and redeemable in one year, was bought by EPOS cardholders. It should be noted that only 0.30% of returns are paid in cash, while the rest is paid as reward points enabled via tokenization. Also, the bonds need to be retained until maturity and cannot be re-sold.
Security token firm Securitize offered the platform utilized for issuance. By digitizing the procedure and keeping third parties out of the deal, the issuance costs were considerably minimized. This enables the issuance of bonds carrying smaller denominations.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
