The cryptocurrency market remains range bound with Bitcoin (BTC) moving between $65,000 and $70,000. While preparing this report, Bitcoin was trading at $65,146, down 0.60% in the past 24 hours. Ethereum (ETH) was trading at $3,550, a decrease of 0.10% in the same period. XRP inched down 0.80% to trade at $0.4932.
Major Cryptocurrencies, that have gained ground in the past 24 hours, are Hedera (HBAR, $0.0795, 5.80%). Polygon (MATIC – $0.5684, 3.20%), Avalanche (Avax- $27.07, 3%), Polkadot (DOT, $5.81, 0.70%), Stellar (XLM, $0.0922, 2.50%), Immutable (IMX, $1.56, 7.20%), and ChainLink (LINK – $14.11, 4.60%).
The only major cryptocurrency, which has lost ground in the past 24 hours, is Solana (SOL, $135.78, -0.60%).
Government Level Initiatives
Banque de France Advances Smart Contract Certification
In a recent speech, Denis Beau, the First Deputy Governor of the Banque de France, announced that the Autorité de Contrôle Prudentiel et de Résolution (ACPR) is collaborating with industry stakeholders to certify smart contracts. The ACPR, the prudential regulatory authority of the central bank, previously outlined proposals in April regarding the potential regulation of decentralized finance (DeFi).
These proposals include establishing security standards for both private distributed ledger technologies (DLTs) and public blockchains, certifying smart contracts, and regulating DeFi access points, including websites.
While some broadly employed smart contracts have already undergone audits, the ACPR envisions a broader scope beyond mere auditing. It emphasized that the traditional regulatory approach of focusing on third parties and service providers may not be sufficient for DeFi. On the contrary, regulators should look at the direct governance of the products themselves, specifically smart contracts, in the context of blockchain technology.
Consequently, for compliance with the legislation, all smart contracts will need to undergo certification.
Russia Plans Cross-Border Digital Ruble Settlements with China and Belarus
Russia plans to start its initial cross-border settlements using the digital ruble in the latter half of 2025. Transactions involving Central Bank Digital Currency (CBDC) with China or Belarus are being considered, as per Anatoly Aksakov, Chair of the Financial Markets Committee of Russia’s State Duma.
Aksakov emphasized a cautious approach during the preliminary stages of this implementation. He noted that China has made significant strides with its digital yuan and that both countries possess relevant experience, making payments in digital currencies with China particularly compelling. He also mentioned the potential for similar trials with Belarus, highlighting the country’s friendly relationship with Russia.
Nevertheless, before Russia can advance to cross-border testing, it must first establish domestic operations for the CBDC. The initial phase of pilot tests began in August 2023, with VTB being the first Russian bank to conduct transactions. As of now, 30 companies across 11 cities are supporting the digital ruble through VTB. VTB is among the 13 banks participating in the first stage of trials. The next phase will expand to include Russia’s largest bank, Sber, the largest digital bank, Tinkoff, and an additional 15 banks.
Private Sector Initiatives
Fidelity International Tokenizes Money Market Fund
After the launch of its Tokenized Collateral Network (TCN) in 2023, Onyx, which is owned by JP Morgan, announced today that Fidelity International has successfully tokenized a money market fund using the platform, enabling its use as collateral.
In institutional finance, one of the most promising applications of blockchain technology is in processes requiring intraday settlement. Traditionally, collateral is held by a custodian and can take two days to move from one party to another within Europe. However, for trading purposes, particularly in derivatives, rapid settlement is essential to mitigate risks. Tokenizing collateral with legal compliance paves the way for instantaneous transfers.
For example, in 2023, BlackRock tokenized a money market fund using the TCN, which Barclays subsequently used as collateral for a derivatives transaction. TCN operates on JP Morgan’s private blockchain network.
Bitcoin Suisse Launches Digital Bond via Obligate Platform
Bitcoin Suisse, one of the country’s biggest digital asset firms, has released a digital bond through the obligate platform. As the issuer, Bitcoin Suisse regards itself as one of the nation’s leading digital asset custodians, managing CHF 5 billion ($5.6 billion) in assets. Approximately 40% of these assets are part of its staking solution, which, along with cryptocurrency trading, substantially contributes to its revenue. Despite a loss of CHF 13 million in 2023, the company rebounded in 1Q 2024, posting a bottom line of CHF 17.2 million.
The digital bond aims to fund Bitcoin Suisse’s digital asset lending solution and is over-collateralized. Backed by Circle, the release is atomically settled, utilizing USDC as the settlement currency.
Stephan Meyer, Co-Founder and Chief Legal Officer at Obligate, stated that facilitating this tokenized bond issuance enables institutional-grade brokers and custodians, such as Bitcoin Suisse—who manage billions in assets—to utilize Obligate’s advanced blockchain technology, robust legal framework, and collateralization capabilities.
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.
