The cryptocurrency market remains slightly bearish as Bitcoin (BTC) is finding it hard to rebound to $45,000 levels. While preparing this report, Bitcoin was trading at $42,534, down 0.90% in the past 24 hours. Ethereum (ETH) had lost 1.50% to trade at $2,526. XRP was trading at $0.5655, a decrease of 1.60% in the same period.
Major cryptocurrencies, which have lost ground in the past 24 hours, are Binance Coin (BNB – $308.71, -2.10%), VeChain (VET, $0.0299, -0.80%), EOS (EOS – $0.7572, -1.70%), Bitcoin Cash (BCH, $242.06, -3%), and Polkadot (DOT, $7.34, -2.30%), IOTA (IOTA – $0.2436, -2.30%), Avalanche (Avax- $35.56, -2.90%), Solana (SOL, $99.31, -0.1%), Cardano (ADA, $0.533, 0.9%), Shiba Inu (SHIB, $0.00009603, -1.30%), and ChainLink (LINK – $15.27, 3.30%).
Government Level Initiatives
Central Bank of Turkey’s Digital Lira Initiative
Just before the dawn of the New Year, the Central Bank of the Republic of Turkey (CBRT) published a report on the first phase of its central bank digital currency (CBDC) trials. The central bank will complete the second phase in the months ahead, after which a decision will be made regarding the launch of a digital lira.
Two years ago, the central bank revealed the list of its tech associates, which includes defense firm Aselsan, software company Havelsan, and government Information Security Research Center, Tubitak Bilgem.
The Turkish government regards digitization as a top priority among its young population. Notably, about 50% of Turks are less than 35 years of age.
Almost 40% of Turkey’s population does not own a bank account. The CBDC is aimed at changing this scenario. Additional factors influencing the situation involve the establishment of an alternate payment pathway, the assurance of consistency in digital payments, and the facilitation of innovation through the implementation of programmable payment solutions.
Private Sector Initiatives
Montis Expands Product Offerings with Enhanced CSD Framework
The central securities depository (CSD) firm Montis, an associate firm of digital asset exchange Archax, is widening its product offering. Nine months ago, it joined hands with Delta Capita to create a distributed ledger based CSD. With that solution now in place, both firms extend their partnership.
The solution facilitates delivery versus payment mechanisms to settle digital securities transactions through the use of deposit tokens and wholesale CBDC. Furthermore, Montis aims to optimize settlement in the EU and handle European-listed warrants.
Following the rollout of the CSD framework, Montis is optimistic about achieving regulatory clearance soon. In the initial stage, it backs Algorand, Ethereum, and Hedera DLTs. A year ago, Delta Capita took over capital markets distributed ledger technology from SETL and rebranded it as MACH.
AsiaNext Launches Institutional-Grade Crypto Derivatives Trading Platform
Singapore-headquartered AsiaNext has rolled out its crypto derivatives trading platform. The platform will function as an institutional-level digital asset trading venue co-founded by Switzerland-based SIX and SBI Digital Asset Holdings.
Trading members at the time of rollout were Wintermute and SBI-owned liquidity provider B2C2.
AsiaNext has claimed that it ensures minimized counterparty and settlement risk, coupled with capital efficiencies via intraday margin and settlement mechanisms. The platform, running on a 24×7 basis, also aids in high-frequency and crypto derivatives trading.
With respect to the time frame, the anticipated clearance of the initial US spot bitcoin ETFs could fuel the need for a hedging platform.
Notably, AsiaNext already has a Recognized Market Operator (RMO) license from the Monetary Authority of Singapore. Nevertheless, the license pertains to only tokenized securities and not crypto derivatives, which do not fall under the purview of regulatory authority in the country. Therefore, crypto derivatives trading is run through a distinct subsidiary.
Libre Unveils Web3 Fund Tokenization Protocol in Partnership with Brevan Howard and Hamilton Lane
Libre, a collaborative venture between Alan Howard-backed WebN and Nomura’s digital asset subsidiary Laser Digita, revealed its intention to roll out a web3 fund tokenization protocol in the current quarter, with Brevan Howard and Hamilton Lane performing the roles of partners to the first asset manager.
The institutional protocol intends to launch a permissioned Polygon sidechain. In due course, as institutions become more welcoming to public blockchains, assets can be hosted on the Polygon mainnet and other permissionless blockchains compatible with the Ethereum blockchain.
Libre’s CEO, Sehra, strategically positions the company as a protocol rather than merely one among numerous tokenization platforms. Similar to other tokenization solutions, Libre automates the process of issuing tokens. Furthermore, as a B2B protocol, it facilitates the transit of tokens to wealth managers and their customers by automating the regulatory, legal, and policy facets. Therefore, it will also aid in the distribution of tokens, which were not earlier issued on Libre.
Sehra envisions a multi-chain future where public blockchains account for a bulk share of activities. Nevertheless, as per the CEO, permissioned blockchain frameworks will also be used for specific functionalities.
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.
