The cryptocurrency market remains slightly bearish with Bitcoin (BTC) hovering around $60,000. While preparing this report, Bitcoin was trading at $60,982, a decrease of 1.60% in the past 24 hours. Ethereum (ETH) lost 0.50% to trade at $3,385. XRP was trading at $0.469, down 1.30% in the same period.
Major cryptocurrencies, which have lost ground in the past 24 hours, are Hedera (HBAR, $0.0753, -4.80%). Polygon (MATIC – $0.5684, -3.20%), Stellar (XLM, $0.0895, -2.40%), Immutable (IMX, $1.54, -3.80%), ChainLink (LINK – $13.80, -3%). Avalanche (Avax- $25.42, -0.40%), Polkadot (DOT, $5.74, -1.60%), and Solana (SOL, $136.78, -1.60%).
Government Level Initiatives
BIS Launches Project Meridian FX to Sync DLT and RTGS for Forex
The Bank for International Settlements (BIS) has revealed Project Meridian FX, a collaborative initiative for foreign exchange (FX) dealings involving the Bank of England, the Eurosystem, and the London BIS Innovation Hub. This project will synchronize the payment versus payment (PvP) mechanism between distributed ledger technology (DLT)-based systems and real-time gross settlement (RTGS) platforms.
In 2023, the Bank of England and the London BIS Innovation Hub released the outcome of the initial stage of Project Meridian, which focused on a delivery versus payment trial.
This trial utilized a “synchronization operator” to concurrently settle DLT-based real estate dealing and the associated money transfer on the RTGS system.
At that time, the potential to trial PvP as a means to mitigate foreign exchange settlement issues, which totaled $2.2 trillion daily in April 2022, was also noted.
Project Meridian FX intends to study methods for reducing the liquidity requirements of participants. Compared to the initial version of Meridian, this project will broaden the range of assets and technologies used in the RTGS synchronization trials.
Private Sector Initiatives
Deutsche Telekom Explores Blockchain Nodes and Green Mining Initiatives
Deutsche Telekom has been operating nodes and staking services for multiple blockchains—14 and counting. Strategically, it considers this endeavor a new-age iteration of traditional telecom infrastructure-related services. Dirk Röder of Deutsche Telekom disclosed that the enterprise currently operates Bitcoin and Lightning network nodes and has the intention to mine Bitcoin. He made this announcement at the BTC Prague event held a week ago.
Deutsche Telekom stressed that its focus is on infrastructure and not on investment. With most blockchains transitioning to proof-of-stake, Bitcoin’s proof-of-work is notably more energy-consuming, fueling ongoing debates about its significant energy consumption.
To address the environmental impact of Bitcoin mining, Deutsche Telekom intends to conduct a pilot project to reduce its energy footprint. This initiative involves making changes to Bitcoin mining rigs so that they respond to the available energy supply in real-time. Essentially, during energy shortages, the rigs would power down, while during excess energy periods, they would use it for mining. This approach is similar to the energy stabilization designs deployed in Texas.
Garanti BBVA Launches Turkey’s First Bank-Affiliated Cryptocurrency Wallet
In 2023, Turkish bank Garanti BBVA introduced Garanti BBVA Digital Assets. Initially, the digital asset wallet was available in beta mode, but it became fully operational at the beginning of June. As per the bank, it is the first associate firm of a Turkish bank to develop and roll out its cryptocurrency wallet. Notably, Neobank Misyon joined hands with Taurus for custody services a few months ago. Garanti BBVA boasts 12 million digital customers and 11.6 million mobile clients, with digital customers accounting for a huge chunk of its business. The mobile app enables clients to transfer and store Bitcoin, Ethereum, and the USDC stablecoin.
“We will continue to grow by expanding our asset diversity and enhancing our service infrastructure in the future,” stated Çağrı Süze, BBVA Garanti EVP and Chairman of BBVA Digital Assets.
Although Turkey has limited laws regarding cryptocurrencies, a 2021 regulation intends to ban the use of cryptocurrencies directly or indirectly for payments.
Miscellaneous
NAB Ventures Acquires Stake in Zodia Custody to Expand Digital Asset Services
Zodia Custody revealed that the National Australia Bank (NAB) has acquired a stake through its subsidiary, NAB Ventures. The digital asset custody firm, established by Standard Chartered, includes Northern Trust, one of the world’s largest international custodians, as a minority investor. Subsequently, Japan’s SBI Holdings headed a $36 million funding round, increasing the cumulative funds raised to $68 million. At that time, Standard Chartered had a 72% stake, Northern Trust 8%, and SBI 20%.
This development follows Zodia Custody’s announcement last year that it had established operations in Australia, intending to cater to domestic institutional customers. With approximately 26% of clients holding digital asset investments, Zodia Custody secured asset manager DigitalX as its initial Australian client, and NAB was conducting a proof of concept.
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