The cryptocurrency market remains slightly bullish with Bitcoin (BTC) hovering around $40,000. While preparing this report, Bitcoin was trading at $41,795, a decrease of 0.40% in the past 24 hours. Ethereum (ETH) has inched up 0.20% to trade at $2,234. XRP was trading at $0.6236, down 0.40% in the same period.
Major cryptocurrencies, which have gained ground in the past 24 hours, are IOTA (IOTA – $0.2766, 3.90%), VeChain (VET, $0.0275, 5.50%), EOS (EOS – $0.7858, 1.20%), Avalanche (Avax- $41.96, 19.50%), Solana (SOL, $71.37, 0.60%), Cardano (ADA, $0.5588, 0.10%), Binance Coin (BNB – $252.45, 8.60%), Bitcoin Cash (BCH, $233.55, 0.10%), Polkadot (DOT, $6.90, 1.90%), and ChainLink (LINK – $15.05, 0.70%).
The only major cryptocurrency, that lost ground in the past 24 hours, is Shiba Inu (SHIB, $0.00000964, -1.10%).
Government Level Initiatives
European Central Bank Unveils Plans for Digital Euro Trials
In mid-October, the European Central Bank (ECB) conducted another meeting with industry stakeholders to discuss its forthcoming digital euro trials, specifically focusing on wholesale settlement solutions powered by Distributed Ledger Technology (DLT). During this meeting, the ECB outlined the key themes it intends to study and detailed the various stages of the upcoming pilot programs.
The wholesale trials will evaluate three interoperability platforms for securities on distributed ledger networks. The transactions are planned to be settled on a DvP (delivery versus payment) basis. The three interoperability solutions include a wholesale CBDC from the Banque de France, Italy’s escrow solution that connects to the traditional TARGET-2 mechanism, and Germany’s trigger solution that connects to Target-2.
The presentation done at the meeting divided the themes into two categories.
Themes studied directly through trials and research:
- Settlement performance and efficiency
- Reliability and safety
- Information management
- Automation features
- Integration of interoperability solutions with new environments (market DLTs)
- Energy consumption
Themes studied with in-depth experimentation:
- Integration of interoperability-type solutions with existing environments (TARGET Services)
- Liquidity management and settlement finality
- Preliminary and qualitative cost analysis
UK Investment Association Unveils Interim Report
The interim report published by the UK’s Investment Association for the Technology Working Group, functioning under the Government’s task force, underlines a plan to permit asset managers to be involved in fund tokenization, but with restrictions. Nevertheless, it also offers a roadmap for wider DLT adoption, facilitating asset managers to capitalize on the advantages of tokenized funds. Notably, 50% of the £8.80 trillion (~$11 trillion) worth of UK funding administers assets on behalf of investors residing outside the UK.
The report highlights three registries poised to leverage Distributed Ledger Technology (DLT): the client registry, responsible for documenting ultimate beneficiaries; the unit register, which enumerates primary market investors (institutions); and the asset register. During the initial stages of tokenization, asset managers are anticipated to incorporate DLT in the unit register, utilizing a permissioned DLT system.
Private Sector Initiatives
Okasan Securities Marks Centennial with ¥2 Billion Digital Bond Offering
To commemorate its centennial celebration, Japan-headquartered Okasan Securities intends to offer digital bonds worth ¥2 billion (~$13.40 million) to retail investors at the end of December. The firm intends to employ the Progmat security token platform, owned by MUFG, for securities issuance. The bonds, redeemable in one year, are sold in units of one million ($6,700).
Mizuho Securities is participating in the issuance as a co-underwriter of the bond. Specifically, Mizuho Bank will perform the role of bond manager, and the custodian is MUFG.
Notably, this will be the 17th security token issued using the Progmat platform, which is co-owned by banks and stock exchanges. Interestingly, MUFG holds a 49% stake in platform ownership.
Miscellaneous
Binance Settles $4.30 Billion with US DOJ for AML Violations
Binance Holdings, the world’s largest cryptocurrency exchange in terms of volume, has agreed to pay $4.30 billion to the US Department of Justice for breaches of the Anti-Money Laundering (AML) and Bank Secrecy Act.
Furthermore, Binance CEO Changpeng Zhao (CZ) has stepped down from his position after pleading guilty to the alleged violations.
While Zhao has entered into a plea agreement stipulating a $50 million penalty, the ultimate decision regarding its acceptance rests solely with the federal judge. Consequently, he has been granted bail until the judgment, scheduled for February. In the event of a guilty verdict, Zhao could face a potential sentence of up to ten years. Notably, the $50 million agreed upon will be deducted from the $150 million that CZ is obligated to pay as part of the settlement with the Commodity Futures Trading Commission (CFTC).
The Binance settlement encompasses multiple issues related to the exchange’s activity:
- Provider services to US clients without relevant approval (license) for money-transmitting business.
- Failure to pursue an infallible anti-money laundering program
- Breach of sanctions
The regulators argued that Binance deliberately failed to comply with the guidelines and covered up its activities. Specifically, the regulators blamed Binance for processing roughly $900 million worth of trade between the US and Iran. Additionally, as per the lawsuit, the firm facilitated trade with Cuba, Russia-controlled regions of Ukraine, and Syria.
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.
