The cryptocurrency market remains rangebound with Bitcoin (BTC) hovering around $17,000. While preparing this report, Bitcoin was trading at $16,685, reflecting an increase of 0.70% in the past 24 hours. Ethereum (ETH) was trading at $1,214, up 1.50% in the same period. XRP had gained 5.20% to trade at $0.3441.
Major cryptos, which have gained ground in the past 24 hours, are ChainLink (LINK – $5.67, 1.80%), VeChain (VET, $0.01615, 1.90%), EOS (EOS – $0.8825, 1.20%), IOTA (IOTA – $0.1817, 6.50%), Binance Coin (BNB – $245.42, 1.30%), Polkadot (DOT, $4.49, 3.20%), Polygon (MATIC – $0.7795, 3.80%), Avalanche (Avax- $11.10, 3.20%), Bitcoin Cash (BCH, $98.82, 3.20%), Dogecoin (DOGE – $0.0714, 2.90%), Solana (SOL, $11.13, 12.60%), Cardano (ADA, $0.2529, 1.80%), Tezos (XTZ, $0.7426, 3.30%), Stellar (XLM, $0.0739, 3%).and Shiba Inu (SHIB, $0.00000820, 1.30%).
Major crypto, which has lost ground in the past 24 hours, is Internet Computer (ICP, $4.01, -0.50%).
Government level initiatives
Third-Party Handling of Digital Euro by ECB
The latest report on digital euro-related activities, published by the European Central Bank (ECB), indicates that the central bank digital currency (CBDC) will be handled by a third party in the form of ‘supervised intermediaries’ or commercial banks and the central banks under the Euro system so that the central bank will not have any need to administer client relationships in a straight forward manner.
The Governing Council of the European Union will make its final decision about issuing a digital euro at the end of 2023.
Similar to physical cash, the liability for the digital euro will be on the central banks of the Euro system. Furthermore, like cash, banks will disburse the digital euro after carrying out anti-money laundering checks.
Nevertheless, contrary to cash, the Euro system linked central banks will owe the responsibility for settlement of all online activities including validation of funds in the wallet of the payer and recording money transfer. Interestingly, depending on the functionality, the ECB stated that it might employ distributed ledger technology (DLT), conventional technology, or a combination of both.
Furthermore, commercial banks will verify client payments (pre-settlement) and have access to the main copy of the activities carried out by their customers (post-settlement).
Private sector initiatives
UBS Issues $50 Million in Security Tokens on Blockchain Platform
UBS Wealth Management revealed that it has used a blockchain-based platform to issue $50 million worth of debt in the form of security tokens to high-net-worth individuals (HNWIs). The investors in the six-month, fixed-rate debt were from Hong Kong and Singapore.
The private placement was carried out by the London office of UBS, with the securities being governed by English and Swiss law. The issue was done using a platform developed on a permissioned version of the Ethereum blockchain.
In the meantime, several digital securities and tokenization platforms are being rolled out in Asia. Singapore’s SGX exchange backs multiple platforms including ADDX and Marketnode. Likewise, Singapore headquartered DBS has released tokenized bonds utilizing its platform. Also, Japan’s SBI Digital Markets has opened a shop in Singapore intending to issue digital bonds.
Notably, Japan-headquartered MUFG’s Progmat is a prominent token-issuing platform focused on real estate. Furthermore, Nomura had partnered with ibet software to develop a blockchain-powered BOOSTRY platform. Currently, the firm has joined hands with JPX, which is the Tokyo Stock Exchange operator, for green bond issuance.
Alphaledger Uses Permissioned Blockchain to Document Municipal Bond Issuances
The US firm Alphaledger used permissioned blockchain to document three municipal bond issuances. As mentioned often, the main advantages of employing blockchain are enhanced transparency and reduced expenses. A distributed ledger is utilized frequently for a broad range of bond and other digital asset releases mainly because the advantages offered by the system have turned the issuance process viable. In the US, a large chunk of bond issuers is in the sub $50 million category.
As per SIFMA, last year, 13,000 municipal bonds valued at $482 billion were issued.
Documenting the issuance using a blockchain-powered platform is the initial step aimed by Alphaledger, which intends to employ smart contracts for on-chain clearing and custodial service.
Carbon Credit PoC Trades Completed Using Blockchain by CIX and Carbonplace
Singapore headquartered carbon exchange CIX and the Carbonplace network revealed that the two bank-aided firms had finished a sequence of Proof-of-concept (PoC) trades for voluntary carbon credits. Both firms employ blockchain.
One of the trial’s aims was to resolve compliance issues, specifically, know your customer (KYC) and anti-money laundering (AML) requirements for participants of emerging market institutions trading carbon credits. The trial illustrated that the compliance procedure could be eased, paving way for shortened settlement times.
The partakers in the trial included carbon credit sellers Carbon Growth Partners and Sustainable Carbon, in addition to Pavilion Energy, Itaú Unibanco, and NatWest on the buy side.
Singapore-headquartered CIX offers a marketplace for sustainable ventures and a platform for trading carbon credits. The firm was established with funding from DBS, SGX, Standard Chartered, and Temasek in May 2021.
Standard Chartered CIBC, National Australia Bank, Itaú Unibanco, Natwest, UBS, BNP Paribas, SMBC, and BBVA are the nine banks backing Carbonplace, which primarily acts as a settlement network and intends to link multiple marketplaces.
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.
