The cryptocurrency market remains range bound with Bitcoin (BTC) trying to consolidate its position. While preparing this report, Bitcoin was trading at $27,036, down 2.30% in the past 24 hours. Ethereum (ETH) has lost 1.10% to trade at $1,872.51. XRP was trading at $0.5091, down 2.20% in the same period.
Major cryptos, which have gained ground in the past 24 hours, are IOTA (IOTA – $0.2014, 0.90%) and Stellar (XLM, $0.0926, 2.20%),
Major cryptos, which have lost ground in the past 24 hours, are Tezos (XTZ, $0.9060, -2.20%), VeChain (VET, $0.02021, -2.90%), Binance Coin (BNB – $306.27, -1.40%), Polkadot (DOT, $5.29, -2.50%), Bitcoin Cash (BCH, $113.09, -0.50%), ChainLink (LINK – $6.49, -1.30%), Avalanche (Avax- $14.04, -1.50%), Solana (SOL, $20.70, -1.90%), Cardano (ADA, $0.3711, -1.70%), Shiba Inu (SHIB, $0.00000861, -0.80%) and EOS (EOS – $0.8934, -1.40%).
Government Level Initiatives
China Galaxy Securities and ICBC Launch Digital Renminbi OTC Wealth Asset
China Galaxy Securities has received clearance from the China Securities Regulatory Commission (CSRC) to unveil a trial of a digital renminbi-based over-the-counter (OTC) wealth management asset in partnership with China’s biggest bank ICBC.
The entities had earlier collaborated in a digital yuan sandbox venture two years ago during the initial days of China’s central bank digital currency (CBDC) trials.
ICBC runs a third-party depository business in which it functions as a cash custodian for customers of securities, setting aside the custody of cash from the functioning of the securities company.
Notably, through the use of a digital yuan wallet, there won’t be any need for the above-said setup as it is possible to have a distinct sub-wallet for cash administered by the securities firm.
Private Sector Initiatives
Broadridge’s DLR Platform: $1T Monthly Trades, Intraday Repo with Top Banks
Broadridge has provided an update on its Distributed Ledger Repo (DLR) platform, which has been handling about $1 trillion worth of monthly trades. Societe Generale, Trading firm DRW, and another undisclosed Tier 1 bank have carried out intraday repo trades on the DLR platform. Notably, UBS conducted the first intraday repo trade with an Asian bank.
Repurchase contracts (repos) encompass bond sales, usually a Treasury, and a repurchase at a future date. The net impact is comparable to getting a short-term loan. It is utilized as a liquidity management solution.
Until April, the major part of DLR trades involved a handful of banks, including Societe Generale and UBS, employing repo between intragroup subsidiaries. That paved way for the platform to go live and offer benefits to customers. The recent batch of cross-company intraday repos established a network effect and offered additional advantages, including risk mitigation, settlement flexibility, and reduction in expenses.
TP ICAP Completes First Crypto Trade on Fusion Digital Assets Platform
The world’s largest interdealer broker, TP ICAP, has completed the first cryptocurrency trade on its Fusion Digital Assets platform. The institutional platform separates the transaction procedures in a way comparable to traditional financial markets, with distinct providers carrying out trade execution, custody, and settlement.
In 2022, the platform was approved (cryptocurrency exchange license) by the UK’s market watchdog, the FCA. The aforesaid trade involved Bitcoin and US dollars. Also, the platform supports Ethereum transactions. Fidelity Digital Assets act as the custodian. There are plans to bring in more custodians.
The Fusion platform pools together liquidity from TP ICAP’s customer base and also the market makers. Notable liquidity providers onboarded include FlowTraders, DLT Finance, and XBTO Global.
Simon Forster, Global Co-Head of Digital Assets at TP ICAP Group, stated “Independent and distinct custody combined with an FCA-registered crypto asset exchange shapes the next phase of crypto asset market framework. With TP ICAP’s liquidity and distribution abilities, we are in an advantageous position to meet the needs of those we serve.”
OCBC Bank Partners with ADDX for Tokenized Equity Offering
Singapore-headquartered OCBC Bank has entered into a partnership with blockchain digital asset marketplace ADDX. The initial product offering from OCBC is a tokenized equity-linked structured note to certified investors. OCBC is the second largest bank in Singapore.
Regarding the partnership, Kenneth Lai, OCBC’s Head of Global Treasury, stated: “We anticipate that it will result in a wider range of product offerings that are alluring to ADDX’s international pool of certified investors.”
The short-term (three-month) debt instrument carries a fixed interest rate, with the underlying asset being the equity of an undisclosed US Big Tech. These notes allow the investors to gain from the market movement in addition to the cash flow in the form of interest.
A minimum investment of $50,000 is required to invest in the instrument and is offered only to certified investors. In Singapore, this implies investors with net assets of over S$2 million ($1.50 million) or income of over S$300,000 ($222,000).
The tokenization platform offered by ADDX offers multiple advantages including cost savings and fractionalization. Currently, ADDX’s platform has handled over 70 transactions, leading to the tokenization of a broad spectrum of assets spanning from commercial paper to debt instruments, real estate, and equities.
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.
