China Construction Bank to Issue Debt via Blockchain Platform

China Construction Bank to Issue Debt via Blockchain Platform
November 12, 2020

 

After undergoing a slight price correction on November 8th and 10th, Bitcoin (BTC) has once again bounced back above the $15,500 level. At the time of writing this article, Bitcoin was trading at $15,619, up 1.3% in 24 hours. However, most of the altcoins remain in the red. Ether (ETH) has lost 1.1% to trade at $457.72. XRP has lost 0.7% to trade at $0.2551.

The only altcoin which has gained ground in the past 24 hours is OKB (OKB-$4.78, 2.7%). Major altcoins which have lost value in the past 24 hours include ChainLink (LINK-$12.59, -5%), Dash (DASH-$68.93, -1.4%), Tezos (XTZ-$2.11, -3.6%), Cosmos (ATOM, $5, -3%), Tether (USDT-$0.9996 -0.1%), Bitcoin Cash (BCH-$253.54, -3%), Binance Coin (BNB-$27.88, -2%), Polkadot (DOT-$4.38, -3.4%), Litecoin (LTC-$58.27, -2.6%), Cardano (ADA-$0.1055, -1.6%), Bitcoin SV (BSV-$157.27, -1.3%), EOS (EOS-$2.49, -1.4%), Monero (XMR-$113.79, -2.2%), Huobi (HT-$3.64, -1.3%), IOTA (IOTA-$0.2506, -2.9%), Stellar (XLM-$0.0800, -1.1%) and Tron (TRX-$0.0250, -0.7%).

 

Government level initiatives

UK Treasury preparing a draft for laws to govern private stablecoins

The UK’s Treasury Department has disclosed that it is preparing a draft of the law to govern private stablecoins, while exploring central bank digital currencies (CBDC) as a substitute for cash.

Through an announcement, the UK Treasury Chancellor Rishi Sunak has revealed the efforts put forth in drafting regulatory guidelines in addition to other objectives for the country’s financial services sector: “New technologies such as stablecoins — privately-issued digital currencies — could transform the way people store and exchange their money, making payments cheaper and faster.”

Sunak further stated that he believes the UK’s financial service industry will take the lead in “the global conversation on new technologies like stablecoins and central bank digital currencies. We are starting a new chapter in the history of financial services and renewing the UK’s position as the world’s pre-eminent financial center. […] Our plans will ensure the UK moves forward as an open, attractive and well-regulated market.”

Even though little info is only available, the announcement indicates that the draft guidelines will call for steps to launch a stablecoin that confirms with the operational standards followed by other payment forms. The document further reveals that both the UK’s central bank and Treasury are exploring the feasibility of a CBDC that can act as a substitute for cash.

 

Private sector initiatives

Santander partners with none Spanish enterprises

Santander stated that it has partnered with nine more leading Spanish enterprises to build a blockchain-powered digital identity validation solution. The venture, named Dalion, includes financial organizations such as Bankia, CaixaBank and BME, insurer MAPFRE and Linea Directa, energy company Repsol and the Alastria association. Dalion was set up in October 2019 and is now far from becoming more than just a vision. It starts its second stage this month, with the idea of rolling out the platform in May 2021. The prototype has been structured to comply with European regulations.

Dalion presently runs on Quorum, the permissioned variant of Ethereum, and has been deployed on Alastria’s blockchain network. The core of the platform is based on ID_Alastria, the digital identity prototype motivated by the vision of Self-Sovereign Identity (SSI). Dalion functions by making certifiers verify the digital identity of the users. Total control of personal info is available for users and can be accessed at any time via a mobile app. They will be able to determine the person or entity with whom they wish to disburse their info.

Blockchain technology improves the trustworthiness of the info safely and dependably. Compared with other SSI solutions, a bit more is saved on the blockchain. Even though blockchain does not store the private information that is being shared, the reality of a credible issue or data disbursement is saved as a hash on the blockchain.

The firms look forward to implementing the digital identity solution in multiple services such as purchasing insurance, applying for a loan, or hiring a car. The solution avoids the need to fill out numerous forms, thereby saving costs and time.

Santander has revealed that all details pertaining to ID_Alastria has been presented to the Spanish Standardization Association and the rest of the European regulatory bodies such as CEN/CENELEC.

 

China Construction Bank partners with a financial tech firm from Hong Kong

China Construction Bank has joined hands with a Hong Kong-headquartered financial technology firm to issue the first-ever digital security using a blockchain-based platform. CCB, one of the “Big Four” banks in the People’s Republic of China, is the second-largest bank in the world in terms of assets.

The bank’s primary intention is to raise a maximum of $3 billion through the issue of debt using the blockchain platform. The first tranche of bonds worth $58 million will be issued to both retail investors and financial institutions. Furthermore, the bank intends to disburse digital bonds having a minimum face value of $100 via an offshore branch of CCB in Labuan, Malaysia. The bonds carry an annual interest of Libor plus 50 basis points or about 0.75%.

Most importantly, the bonds are issued as tokenized certificates of deposit on the blockchain. Additionally, the tokenized certificate of deposits will be tradable on the Fusan exchange from November 13th onwards. As Fusang Exchange supports crypto trading, traders will be able to use their Bitcoin (BTC) holdings to purchase the bonds.

 

Miscellaneous

Brad Garlinghouse contemplating moving Ripple’s HQ to a crypto-friendly country

Of late, Brad Garlinghouse, CEO of Ripple, had revealed plans to shift the company’s headquarters to a crypto-friendly country. The list of preferred locations included the UK, Japan, and Singapore.

In a media release, the Dubai International Financial Centre (DIFC) has revealed that Ripple will establish its headquarters in the DIFC. As per Ripple, the country offers progressive regulations, a wide network, and a standing “as a leading global financial center.”

DIFC Authority CEO Arif Amiri listed the benefits of operating under DIFC regulations. Amiri said: “Leveraging DIFC’s world-class platform, laws and regulations, our FinTech firms are able to work with other DIFC’s clients, who form part of the region’s largest financial ecosystem, to contribute to the development of the global, regional and local finance industry.”

Navin Gupta, Ripple’s Managing Director for South Asia and MENA (the Middle East and North Africa), has stated that the company will use the opportunity to cement its presence in the region: “Ripple already has a significant client base in the MENA region and the opportunity to co-locate with our customers made DIFC a natural choice. Our regional office will serve as a springboard to introduce our blockchain-based solutions and deepen our ties with even more Financial Institutions in the region.”

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.

Ian Maguire

Ian Maguire

Ian is our resident contributor to the latest going ons in the cryptomarket, keeping up to date with the latest icos and coins


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