The cryptocurrency market remains range-bound with a slight bearish bias as increasing selling pressure has made it difficult for Bitcoin (BTC) to sustain above $30,000. While writing this article, Bitcoin was trading at $30,646.90, down 3.5% in the last 24 hours. Ether (ETH) has lost 5.60% to trade at $1,785. XRP was trading at $0.5416, down 7.4% in the past 24 hours.
The only major altcoin, which has gained ground in the past 24 hours, is Dash (DASH-$130.41, 13.6%).
Major altcoins, which have lost ground in the past 24 hours are Binance Coin (BNB-$273.16, -9.3%), IOTA (IOTA-$0.6039, -9.70%), Cosmos (ATOM, $9.63, -10.20%), Tezos (XTZ-2.22, -7.6%), Tron (TRX-$0.0519, -6.80%), EOS (EOS-$3.33, -7.70%), ChainLink (LINK-$14.05, -8.30%), Cardano (ADA-$1.09, -7.10%), Polkadot (DOT-$10.91, 11.80%), Bitcoin Cash (BCH-$404.45, -7.4%), Stellar (XLM-$0.2055, -9.80%), and Bitcoin SV (BSV-$114.91, -6.10%).
Government level initiatives
National Bank of Ukraine CBDC feasibility poll published
Ukraine’s central bank, the National Bank of Ukraine, has published the outcome of a poll conducted to know the necessity and feasibility of a central bank digital currency (CBDC).
The survey had participation from 100 financial professionals from a range of sectors. Specifically, finance professionals from the retail sector represented 45% of the poll participants. Also, 36% of the respondents had knowledge of financial markets.
Notably, the National Bank of Ukraine started working on the e-hryvnia project five years ago, and the trial to utilize the CBDC for retail payments via a blockchain platform began in 2018.
The survey revealed that the e-hryvnia was well suited for making payments at retail outlets, mainly in online (e-commerce) transactions. The three selected use cases for the digital currency were cashless retail payments, cross-border remittance, and virtual asset transactions. Furthermore, e-hryvnia is expected to pave the way for quicker and safer electronic transactions.
In Ukraine, card-based payment systems, which involve high fees, are generally used for cashless transfers. Notably, the use of digital currency leads to a sharp drop in transaction charges.
Private sector initiatives
MUFG Trust considering issuing ABS through security token platform.
MUFG Trust has revealed its intention to start issuing asset-backed securities (ABS) through the use of a blockchain-based Progmat security token platform. The tokens will be based on real estate, and Kenedix will act as the administrator of the property assets. SBI Securities and Nomura Securities will back the security token offering (STO) in the form of an underwriter and offer the tokens to potential investors. The platform basically tokenizes real estate but conforms to Japan’s law.
Two years ago (2019), MUFG revealed the development of the Security Token Research Association (SRA) and, as a portion of that, established a team to work on asset-backed securities. The aforesaid enterprises are part of that association. Initially, the SRA had 22 members but has increased to over 50 over time.
Kenedix will administer the real estate, which makes up the fund, and MUFG Trust would provide a beneficiary certificate. The paper-based beneficiary certificate issued earlier is replaced by a security token issued using the Progmat platform. SBI and Nomura Securities act as underwriters for the security tokens. Additionally, MUFG Trust also acts as custodian, with the info retained on the Progmat platform.
Miscellaneous
Circle to be listed on the NYSE
Circle, the financial technology company well known for the development and issuance of stablecoin USDC, is preparing to get listed on the NYSE via the special acquisition (SPAC) vehicle Concord Acquisition Corp (CAC) in a transaction that pegs the worth of Circle at $4.60 billion. The listed entity will have assets of over $1.10 billion.
The listed entity will continue to have Jeremy Allaire as CEO. Notably, Bob Diamond, the Chairman of CAC, was the former CEO of Barclays Bank. He stepped down after the regulator took action against Barclays for rigging the LIBOR interest rate. Diamond will be given a seat on Circle’s board.
Under Circle’s management, the USDC stablecoin rose in market cap of about $1 billion a year ago to $25 billion currently. The stablecoin was created by Centre, a joint program with Coinbase, but is primarily administered by Circle. As per Circle’s announcement, the USDC has been utilized in over $785 billion worth of on-chain transactions.
While the primary aim of USDC was on payments, the surge in decentralized finance (DeFi) and DeFi based lending, specifically, has increased the demand for USDC.
Fujitsu invests in Digital Commodity Exchange
Fujitsu publicized its investment in the Singapore-based Digital Commodity Exchange (DCX). The Japanese tech firm began working with startup rice exchange RiceX, a DCX subsidiary, in 2019, to implement the blockchain for rice traceability. The joint partnership has since grown after DCX unveiled its fertilizer exchange FertX, with additional commodities planned.
Fujitsu has made a strategic investment in the Singapore-headquartered Digital Commodity Exchange (DCX). Two years ago, the Japanese technology firm joined hands with RiceX, a subsidiary of DCX. The startup rice exchange uses a blockchain platform for tracking rice. The collaboration has deepened in the following years, with DCX rolling out its fertilizer exchange FertX, with additional commodities in the offing.
In late 2020, the RiceX platform became commercialized. Following the completion of three deals last November, the firm stated that it aims to command a market share of 20% in the global rice market by the end of 2020.
In the months ahead, the Japanese company intends to target grains and other farming goods, in addition to raw materials for manufactured goods. Even though Fujitsu did not reveal the quantum of investment, Fujitsu Ventures has set aside an aggregate fund of ¥10 billion ($91 million) for investment in multiple phases of the project.
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