The cryptocurrency market remains range-bound with a slight bullish bias as Bitcoin (BTC) continues to consolidate above $50,000. While preparing this report, Bitcoin was trading at $51,619, down 1% in the past 24 hours. Ethereum (ETH) had gained 1.10% to trade at $2,915. XRP was trading at $0.5881, an increase of 0.80% in the last 24 hours.
Major cryptocurrencies, that have gained ground in the past 24 hours, are EOS (EOS – $0.7869, 0.90%), Polkadot (DOT, $7.89, 0.80%), Cardano (ADA, $0.6288, 1.30%), IOTA (IOTA – $0.2845, 0.40%), and Binance Coin (BNB – $354.21, 0.5%).
Major cryptocurrencies, that have lost ground in the past 24 hours, are VeChain (VET, $0.0439, -4.40%), Solana (SOL, $109.97, -1.70%), Bitcoin Cash (BCH, $269.33, -0.40%), Shiba Inu (SHIB, $0.00009804, -0.20%), ChainLink (LINK – $19.68, -2.10%), and Avalanche (Avax- $39.20, -2.40%),
Government Level Initiatives
Hashgraph Association and Saudi Ministry Partner for Riyadh’s DeepTech Venture Studio
The Hashgraph Association (THA) has entered into an agreement with the Ministry of Investment of Saudi Arabia (MISA) to establish a “DeepTech Venture Studio” in Riyadh. For this purpose, THA has set aside $50 million. Additionally, in partnership with MISA, the entity will seek investors to raise up to $250 million over the next five years.
The Switzerland-headquartered Hashgraph Association was established through financial aid from Hedera Hashgraph, which runs the layer-1 public DLT. THA intends to support business growth and partner with the Hedera ecosystem.
Along with Web3 and DLT, the DeepTech Venture Studio will focus on AI, robotics, virtual reality, and quantum computing.
In the forthcoming five years, the Studio intends to back over 500 enterprises, beginning with 100 in the initial year. The Ministry of Investment of Saudi Arabia will aid in receiving licenses and becoming compliant while acting as a bridge with government entities and other strategic collaborators. As a part of the Swiss Economic Mission, the Hashgraph Association visited Saudi Arabia.
To begin with, the Studio will focus on domestic Saudi enterprises but will later tie up with overseas companies that are interested in establishing business in the Kingdom.
Firms that meet the criteria would be granted venture capital investments ranging from $250,000 (startups) to $500,000 (established enterprises). Furthermore, the Studio will offer training and assistance, including product development, engineering, and compliance.
Florida Considers Regulation for State Banks in Crypto Business
The State of Florida is presently examining legislation aimed at providing regulatory transparency for state-chartered banks and trust entities interested in engaging in ‘digital trust business,’ which includes activities such as crypto custody and cryptocurrency exchange. This initiative also encompasses banks involved in the issuance of stablecoins. The bill has been introduced in the Senate and is awaiting a committee hearing for further deliberation.
A major part of the tabled bill delineates the application procedure and risk evaluation criteria that banks must compulsorily undergo when venturing into the crypto domain. The draft bill also mentions stablecoin stipulations, some of which match those outlined in Federal legislation. The prescribed underlying assets include short-term Treasuries, reverse repurchase (repo) agreements, or bank deposits. Additionally, a limited percentage of assets could be retained in government money market funds.
Additional prerequisites involve a certified accountant providing monthly confirmation of reserve attestations. Nevertheless, any state bank intending to introduce a stablecoin would still be obligated to seek approval at the federal level.
Private Sector Initiatives
UBS Issues Tokenized Warrant on Ethereum Blockchain in Hong Kong
In Hong Kong, UBS issued a tokenized warrant on the public version of the Ethereum blockchain. The warrants, suitable for investment, were issued using the UBS Tokenize issuance platform. The offered asset was fundamentally a call warrant on Xiaomi stock, and the investor was OSL Digital Securities.
For the last few years, UBS has been proactive in the institutional DLT domain. In fact, the financial institution co-founded the institutional payment solution Fnality. Of late, the firm has been focusing on Web 3.
In the final leg of 2022, UBS Wealth Management issued digital debt securities worth $50 million to accredited investors in Asia. Last year, the Bank of China Investment (BOCI) issued digitally structured notes on the Ethereum blockchain by utilizing the UBS Tokenize platform.
Furthermore, UBS took part in several public blockchain trials as part of Singapore’s Project Guardian. One of those trials was related to a tokenized money market fund issued on the Ethereum blockchain. Another trial was linked to cross border repo, which involves the sale and repurchase of a natively issued digital bond on a public blockchain. The trial was carried out with the cooperation of SBI and DBS.
Miscellaneous
BitGo Acquires Brassica to Advance Real-World Asset Tokenization
Digital asset custodial firm BitGo acquired Brassica, which offers a back-end framework and custodial facilities for private securities and alternative investments. Therefore, it is positioning the company to leverage the (RWA) real-world asset tokenization trend.
Several top banks offer cryptocurrency custodial services. Nevertheless, in the US, the SEC’s staff accounting guidelines do not permit banks to offer such solutions.
Brassica possesses a transfer agent license in the state of Texas, along with holding a Wyoming Trust charter. Similarly, BitGo is endowed with trust charters in both South Dakota and New York.
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.
