The cryptocurrency market remains range bound with a slight bullish bias as Bitcoin (BTC) hovers around $28,000. While preparing this report, Bitcoin was trading at $27,843, up 0.20% in the past 24 hours. Ethereum (ETH) gained 1.80% in the same period to trade at $1,811. Also, XRP lost 3.40% to trade at $0.4940.
The major cryptos, which have gained ground in the past 24 hours, are Dogecoin (DOGE – $0.0975, 25.80%), Shiba Inu (SHIB, $0.00001133, 6.80%), VeChain (VET, $0.02323, 1.30%), IOTA (IOTA – $0.2154, 1.40%), Polkadot (DOT, $6.43, 4.10%), Bitcoin Cash (BCH, $127.24, 4.50%), Cardano (ADA, $0.3888, 3.30%), Tezos (XTZ, $1.11, 1.30%), Solana (SOL, $20.49, 1.70%), ChainLink (LINK – $7.29, 1.80%), Avalanche (Avax- $17.06, 0.70%),
The major cryptos, which have lost ground in the past 24 hours, are Binance Coin (BNB – $309.34, -0.30%), Stellar (XLM, $0.1059, -0.20%), Internet Computer (ICP, $4.94, -1.10%), and EOS (EOS – $1.18, -3.20%).
Government level initiatives
Luxembourg Allows DLT Securities as Collateral, Expands Definition of Financial Assets
The Luxembourg parliament endorsed a law that permits DLT-powered securities as collateral. It also relaxes the explanation of financial assets to include those released under the EU’s DLT Pilot Regime, which has become effective last month.
Instead of making any key amendments to the rules on preparing, amending, and establishing collateral arrangements, it broadens the description of financial assets to encompass those released on DLT.
Luxembourg has been among the initial jurisdictions to back blockchain-driven securities. Four years back, the state-enforced rules that backed the documentation and transfer of DLT-based securities. It later amended it to include the issuance of dematerialized securities utilizing distributed ledger or blockchain.
The European Investment Bank has released blockchain bonds thrice so far and two of them were released using Luxembourg rules. A €100 million bond was released by employing the Goldman Sachs private blockchain platform in November 2022. This was followed by a £50 million bond release using the HSBC-run Orion enterprise blockchain based on the public Ethereum public blockchain.
Private sector initiatives
Absa CIB Joins Contour’s Trade Funding Network to Streamline Letter of Credit Settlements
Absa Corporate and Investment Bank (Absa CIB) has become a member of Contour’s trade funding network focused on end-to-end Letter of Credit settlement. Absa is the third biggest banking group in South Africa, operating in 15 countries, including 12 in Africa. Notably, Absa is the 20th member of the Contour network.
Contour aids in digitizing the paper-based letter of credit workflow, minimizing the processing time period to less than 24 hours rather than five to 10 days. Several large shipping companies have started digitization of bills of lading, which function as proof of cargo ownership. Bills of lading are a crucial document in the shipping process.
As of now, Contour has made successful inroads in Asia, with the top five trade funding banks in the region being its network members (BNP Paribas, HSBC, StanChart, DBS, and Citi). In the case of Africa, currently, Contour’s platform is used only by Standard Chartered. The demand for the platform is expected to rise in the region as the African Continental Free Trade Area (AfCFTA) intends to boost intra-continental trade by 52.30%.
JP Morgan Trials 24×7 Dollar Settlements via Blockchain in India’s GIFT City
In India, dollar payments are carried out using Nostro accounts opened by Indian financial institutions in the US-based banks. In GIFT City (Gujarat state, India), JP Morgan’s branch has commenced a trial to carry out international settlements for other banks in the GIFT City. Within a month, local banks will establish a Forex account (blockchain) with JP Morgan (India), paving way for 24×7 settlement rather than US banking hours.
GIFT City intends to compete with other top global financial centers such as Hong Kong, Singapore, Dubai’s IFC, and Abu Dhabi Global Market (ADGM). Therefore, it is categorized as a quasi-foreign territory with different regulations from other parts of India. Deutsche Bank and MUFG have also set up offices in GIFT City.
JP Morgan will run a sandbox environment allowing the aforesaid banks to set up on-chain Nostro accounts. Even though communication is done through standard SWIFT messages, the ability to provide real-time settlement and 24/7 payments is due to the availability of distributed ledger within JP Morgan’s network. This implies payments are transferred from one bank’s account at JP Morgan to another account in another branch of JP Morgan. Currently, payments outside the system are not facilitated.
As JP Morgan processes about $10 trillion worth of payments on a daily basis, major banks will probably have an account with the financial behemoth ensuring the success of the blockchain platform
SITA and Indicio Trial Decentralized Identity for Travelers in Aruba
SITA, the tech provider focused on the transport industry, has begun its decentralized identity trial in association with digital identity firm Indicio. The trial aims at the verification of travelers without the use of physical documents. Specifically, while touring the Caribbean island of Aruba, tourists will be able to employ SITA’s Digital Travel Credential (DTC). The app retains the passport info as a verifiable record in the user’s mobile wallet.
In addition to the advantage of not having to manually enter the information, another benefit is that the individual who enters it is in charge of giving consent for the data to be shared. Therefore, only government officials should have access to all passport details. The card can also be utilized at hotels and car rental agencies.
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.
