The cryptocurrency market remains rangebound with Bitcoin (BTC) hovering around $28,000. While preparing this report, Bitcoin was trading at $28,084, down 2% in the past 24 hours. Ethereum (ETH) had lost 0.80% to trade at $1,898. XRP was trading at $0.5026, a decrease of 0.60% in the same period.
The only major crypto, which has gained ground in the past 24 hours, is IOTA (IOTA – $0.2278, 1.30%).
The major cryptos, which have lost ground in the past 24 hours, are Dogecoin (DOGE – $0.0917, -5.50%), Shiba Inu (SHIB, $0.00001108, -2.90%), VeChain (VET, $0.02409, -1.60%), Polkadot (DOT, $6.39, -2.90%), Bitcoin Cash (BCH, $126.32, -2%), Cardano (ADA, $0.3893, -2.20%), Tezos (XTZ, $1.13, -0.90%), Solana (SOL, $20.81, -1.90%), ChainLink (LINK – $7.29, -3.70%), Avalanche (Avax- $17.89, -1%), Binance Coin (BNB – $312.99, -0.20%), Stellar (XLM, $0.1056, -1.70%), Internet Computer (ICP, $4.98, -2.60%), and EOS (EOS – $1.18, -2.20%).
Government level initiatives
ECB President Advocates for Digital Euro to Protect European Payment Sovereignty
While speaking at the 2023 BIS Innovation Summit, Christine Lagarde, president of the European Central Bank, highlighted the reasons behind the creation of a digital euro. Similar to earlier instances, the aspect of monetary sovereignty played a major part as Europe intends to minimize its reliance on overseas global payment systems.
Beginning with resiliency, Lagarde emphasized the necessity for avoiding identical errors as with Russian energy reliance and rather protecting the European payment sovereignty through the creation of a central bank digital currency (CBDC).
Indirectly referring to Visa and Mastercard, which handled almost 75% of European card payments, in addition to Paypal, she also pointed out that the prevailing methods of payment are not exactly European and so there is a need to be extremely cautious.
With regards to integrity, the ECB president highlighted the Eurozone’s declining usage of cash, which was expedited during the COVID-19 pandemic and the Russia-Ukraine war. She said, “The usage of cash has decreased from 72% to 59% over the same time period, while online payments have increased three-fold.”
Private sector initiatives
Chainlink Partners with PwC Germany to Boost Enterprise Blockchain Adoption
Chainlink Labs, which owns and administers the Chainlink blockchain oracle ecosystem, has joined hands with PwC (PricewaterhouseCoopers) Germany as an integration associate to encourage enterprises to roll out blockchain apps, primarily on the public blockchain.
Chainlink’s Oracle network channels external data for use in smart contracts. Other than crypto-related data, the material can be used for real-world apps including FX, weather, or flight info utilized for parametric insurance.
As the data provided by Chainlink can certainly influence financial outcomes, care should be taken for ensuring the data transferred from the source to the smart contracts do not get altered. Chainlink’s network plays an important role in it. The unaltered API data is necessary for the smooth functioning of several blockchains. Therefore, Chainlink Labs built the cross-chain interoperability protocol (CCIP), offering a communication interface for smart contracts running on different blockchains (public and private) to engage with each other. The firm is not piloting the system with SWIFT.
Notably, Chainlink also facilitates off-chain computation. Also, it offers a decentralized identity app for ensuring compliance with KYC guidelines.
Crypto Finance and Apex Group Partner for Crypto Products
Crypto Finance has partnered with international fund manager Apex Group to provide institutional-level structured cryptocurrency offerings. Swiss-headquartered Crypto Finance is FINMA governed and an associate firm of the Deutsche Börse Group. Other than asset administration, Crypto Finance offers crypto brokerage, custodial services, staking, and tokenization services.
In the second quarter, both firms will partner to provide exchange-traded products (ETPs) and actively managed certificates (AMCs) pegged to digital assets. The products will be targeted at banks, family offices, and asset managers.
Apex Group intends to function as a Swiss independent securitization SPV, offering its regular administration, trustee, and reporting services and capitalizing on Crypto Finance’s framework to offer structured products. Back in mid-2021, Deutsche Börse set aside over CHF 100 million ($108 million) to acquire a 75% stake in Crypto Finance.
Miscellaneous
Laser Digital Invests in Digital Asset Firms for Institutional Crypto Trading
Laser Digital, an associate firm of Nomura, has invested in two digital asset companies, namely ClearToken and Crossover Markets. While ClearToken creates a central counterparty (CCP) to eliminate bilateral counterparty threats, Crossover Markets has unveiled an execution-only network. Therefore, institutional crypto investors can select their own broker, custodial service, and credit options. Both investments seem to complement each other as one firm aims at quick, low-risk cryptocurrency trade processing while the other addresses post-trade threats.
Notably, Laser backed ClearToken during the incubation period. ClearToken’s CCP will centralize settlement, clearing, collateral, and risk administration measures comparable to CCPs for traditional assets. Therefore, rather than clearing and settling in a straightforward manner, investors, cryptocurrency exchanges, brokers, custodians, and market makers will carry out a settlement with the CCP.
In addition to risk mitigation, a crucial feature is the centralization of collateral administration. To put it simpler, instead of having capital frozen in several venues, it can be routed to a single CCP, which will release the capital.
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.
