The cryptocurrency market remains range-bound, with Bitcoin (BTC) hovering around $37,000. While preparing this report, Bitcoin was trading at $37,129, down 0.50% in the past 24 hours. Ethereum (ETH) had lost 1.20% to trade at $2,027.50. XRP was trading at $0.6036, a decrease of 1.20% in the same period.
Major cryptocurrencies, which have lost ground in the past 24 hours, are IOTA (IOTA – $0.1707, -3.20%), Cardano (ADA, $0.3778, -1.90%), Binance Coin (BNB – $226.90, -1.30%), Bitcoin Cash (BCH, $222.82, -1.40%), VeChain (VET, $0.02137, -2.20%), Shiba Inu (SHIB, $0.00000815, -1.10%), EOS (EOS – $0.6734, -2.50%), Avalanche (Avax- $20.27, -2.60%), Polkadot (DOT, $5.18, -2%), Solana (SOL, $55.02, -3.20%), and ChainLink (LINK – $14.23, -4.50%).
Government Level Initiatives
Piloting RBI’s Wholesale CBDC for Interbank Settlements
Last year, the RBI started working on piloting the wholesale CBDC, which is used only between banks for various processes, including settlements. Initially, the wholesale CBDC was used to settle secondary market government bond trades. In October, the wholesale CBDC was employed for interbank settlement in call money markets.
Even though wholesale CBDC is mainly utilized for interbank settlement, it could be employed for interbank payments linked to SME transactions.
Across the world, the wholesale CBDC has been utilized in settling several capital market transactions and/or DLT-powered trades. The wholesale CBDC enables atomic settlement, a phrase indicating simultaneous completion of payment and transfer of asset title.
Private Sector Initiatives
DZ Bank Partners with Metaco to Launch Custodial Solution
Germany’s third-largest bank, DZ Bank, has unveiled a digital asset custodial solution for processing and safeguarding digital financial assets on the blockchain. The bank joined hands with Swiss company Metaco to administer its cryptocurrency services by employing Metao’s custodial technology solution, Harmonize.
The partnership has placed DZ Bank in the league of financial firms that have rolled out a suitable blockchain-powered solution for institutional clients. The digital custody solution, which has been under development for the past year, will initially accept crypto securities into custody. This includes a crypto bond, subscribed to by Union Investment and DZ Bank, from Siemens.
DZ Bank served as the processor and custodian in the inaugural external transaction involving the shares of a cryptocurrency fund from Bankhaus Metzler. Given that both instances are encompassed by the Electronic Securities Act (eWpG), the existing licenses permit the provision of custody services.
Furthermore, DZ Bank’s prevailing framework provides them with a solid opportunity to take part in the European Central Bank’s (ECB) study phase. During this stage, the settlement of large-volume capital market trades in central bank money is trialed.
HSBC Announces 2024 Launch of Institutional Digital Asset
HSBC has affirmed its plan to roll out a digital asset custodial solution next year. HSBC’s solution will aim at institutional customers investing in tokenized securities, including cryptos. The bank is collaborating with Switzerland-headquartered tech company Metaco and will utilize its Harmonize custody and orchestration platform. HSBC, a renowned custodian administering $9.10 trillion in holdings as per 2022 data, perceives the custodial solution as complementary to its other solutions related to digital assets.
This includes HSBC Orion facilitating bond tokenization and issuance, in addition to a gold tokenization solution. Zhu Kuang Lee, Chief Digital, Data, and Innovation Officer, Securities Services, HSBC, stated, “There is a growing trend in the financial industry wherein asset managers and asset owners are demonstrating an escalating interest in custody and fund administration services for digital assets. This heightened demand is a direct response to the ongoing evolution of the digital asset market.”
Siemens First to Use JPM Coin’s Programmable Payments
Siemens has gained the credit of being the first enterprise to use the programmable payment feature of blockchain-powered JPM Coin, developed by JP Morgan.
The feature facilitates the incorporation of a wider spectrum of rules than traditional conditional payments. JP Morgan offers a unique “If-This-Then-That” aspect via its online treasury platform.
FedEx and Cargill intend to go live in the weeks ahead.
Illustrations of programmability include the capacity to outline regulations ruling the replenishment of a bank account in the case of a deficit. Payments can be structured to react to various scenarios, such as margin calls or the receipt of an asset or commodity.
Four years ago, JP Morgan began piloting JPM Coin, which is now utilized to handle over $1 billion in payments. Even without the feature of programmability, the solution facilitates atomic settlement and 24×7 cross-border trades between accounts within the bank.
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.
