DekaBank to Launch Blockchain-Based Tokenization Platform

Together with the digital asset startup Metaco, the German bank DekaBank, which has been in business for 105 years, is now working on the preparations necessary to launch a tokenization platform that is powered by blockchain technology.

Sack has said that the infrastructure for the tokenization platform will become accessible in the not too distant future, and that this will result in the introduction of the first minimum viable product in our cryptocurrency custody solution. Moreover, he believes that this will take place very soon. He went on to explain that it is extremely conceivable that the tokenization platform will have its first set of test transactions this year. He said that this year is the most likely time for this to occur.

In collaboration with the digital asset management platform Metaco Harmonize, the next blockchain platform that will be used by DekaBank is now in the process of being developed. The statement about the financial institution’s relationship with Metaco was made in an official capacity on January 31. It is the intention of the bank to make use of Harmonize as the key platform for what it refers to as a “institutional digital asset offering.”

According to Sack, the next sale will include tokenizing assets like as shares, bonds, and money in order to create a new token economy viable. This will make it possible to buy and sell tokens. In addition, he said that “Metaco is the key to this economy since it is our major management solution for tokenized assets on different blockchains.” The reason for this is due to the fact that Metaco is the driving force behind this economy.

The CEO said that the process of tokenization takes use of a number of other blockchains, such as Ethereum and Polygon, amongst others. “It is not yet clear if there is one blockchain that will become the standard,” he stated. “It is possible that several blockchains will coexist.” There is a possibility that more than one blockchain may emerge as the industry standard.


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LocalBitcoins Shuts Down After 10 Years

LocalBitcoins, a peer-to-peer (P2P) bitcoin trading platform located in Finland, has announced that it would be ceasing operations after more than a decade of providing services to its users.

On February 9, LocalBitcoins made the formal announcement that company will be discontinuing its services, citing the challenging market circumstances caused by the protracted bitcoin winter.

LocalBitcoins urged all of its clients to remove their cryptocurrency holdings from the site and instructed them to begin the process of removing Bitcoin (BTC) from the wallet associated with their LocalBitcoins account. According to the notification, customers have the ability to withdraw their cryptocurrency assets from their LocalBitcoins accounts for a period of one year. The company made the following observation: “However, of course, we advise you to continue with withdrawing sooner.”

According to the timeframe for the shutdown, starting on February 9, LocalBitcoins will instantly stop accepting any new registrations. On February 16th, all trading will be halted, and after that date, users will only be allowed to log in to their wallets to withdraw monies from their accounts.

The sudden shutdown of LocalBitcoins comes not long after the United States Financial Crimes Enforcement Network named the site as one of the most significant Bitcoin senders to the Russia-connected exchange Bitzlato. The United States authorities have initiated a significant enforcement action against Bitzlato, accusing the company of engaging in money laundering and allegedly assisting in the evasion of sanctions imposed on Russia.

Since October 2022, when we ceased providing Russian user accounts and accounts of users resident in Russia, our records show that there have been almost no transactions between LocalBitcoins and BitZlato. This information is based on the data we have collected.

Blomberg further emphasized that Know Your Customer and Anti-Money Laundering requirements were adhered to by LocalBitcoins in a stringent manner and that the company has been regulated by the Finnish Financial Supervisory Authority since 2019.

As was noted in the past, Russia was at one time one of the most important markets for LocalBitcoins. As of June 2020, the country had the highest volume of Bitcoin trades on the site. According to statistics provided by Coin Dance, the total trade volumes on LocalBitcoins have been steadily decreasing after hitting an all-time high in December of 2017.

Since February 2021, when they fell below 1,000 BTC for the first time, weekly Bitcoin trade volumes on LocalBitcoins have never recovered to their previous levels. The most recent weekly BTC trade volume that was reported on LocalBitcoins was 283 BTC, which is equivalent to around $6 million. According to statistics provided by CoinGecko, large cryptocurrency exchanges such as Coinbase conduct daily transactions totaling $282 million in digital currency.


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Chiliz Launches Layer-1 Blockchain to Support Growth

Chiliz, a platform for fan tokens, has now announced the launching of its very own layer-1 Ethereum Virtual Machine (EVM) compatible blockchain environment. This move was made to allow the network to continue expanding five years after its first appearance.

The Chiliz fan token ecosystem has been propelled by ERC-20 tokens that are based on Ethereum since since the project’s launch. However, after the genesis block of the Chiliz 2.0 blockchain has been successfully validated, the community will shift to its very own layer 1.

It is anticipated that the new blockchain, which uses a network of 11 active validators and a proof-of-stake authority consensus, will result in shorter block times, cheaper fees, and reduced energy consumption. These benefits will be realized as a result of the use of a proof-of-stake authority consensus.

According to the documentation that was published by the project, Chiliz Chain 2.0 is a hard fork of BNB Chain. BNB Chain is a well-known option for Ethereum forks. This shows that the new layer-1 is compatible with EVM, a feature that is intended to persuade developers of decentralized apps to create their applications inside the ecosystem rather than outside of it.

Chiliz has become well-known in the fields of both sports and entertainment thanks in large part to the success of the fan token app known as Socios. The platform works with some of the most successful teams and businesses in the industry of sports to provide its users with the best possible experience. Some of the most prestigious football clubs in the world, like Barcelona, Paris Saint-Germain, Manchester City, Arsenal, and Juventus, are among the teams who use the platform to handle the tokens of its supporters.

Non-fungible tokens (NFTs), fan tokens, and tickets that are compatible with Web3 may be minted on the platform, making it useful for corporations, teams, and people. In addition, users have the ability to build decentralized apps (DApps) by combining Web3-based experiences and products.


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Tether Completes Reserves Attestation by Major Global Accounting Firm

The completion of the reserves attestation for the cryptocurrency Tether has been accomplished with flying colors by the prestigious international accounting firm BDO. The attestation that Tether is the world’s biggest stablecoin by market value was carried out by BDO, and the coin is issued by the company that owns the stablecoin with the highest value.

The stablecoin company released a statement on February 9 about the issuing of BDO’s assurance opinion. This opinion restates the reassurance that the right information may be seen in Tether’s consolidated reserves report (CRR) as of December 31, 2022.

According to the CRR, Tether’s consolidated assets are worth at least $67 billion, which is more than the company’s consolidated liabilities, which are at $66 billion, and the company has surplus reserves that are worth at least $960 million. Tether’s consolidated assets are greater than the company’s consolidated liabilities, which are at $66 billion. The whole amount of Tether’s consolidated assets is $67 billion, which is more than the total amount of the company’s consolidated liabilities, which is $66 billion.

In addition to the reduction in its committed secured loans, the report reveals that by the end of 2022, Tether had no outstanding commercial paper. This comes after a drop in the amount of its total committed secured loans. [There must be other citations for this]

As was first indicated, by the middle of October 2022, Tether will have totally eliminated commercial paper from (USDT) reserves and will have replaced those assets with United States Treasury Bills. This will have been accomplished in accordance with the original timetable. The first step in the company’s first strategy was to announce that it would begin removing commercial paper from USDT reserves in the month of June 2022. On the other hand, this proposal was ultimately abandoned. At that time, the total reserves held by the USDT were $82 billion, and commercial paper accounted for less than 25 percent of those reserves. Commercial paper accounted for less than 25 percent of those reserves.


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Russia Gives Tax Incentives to Crypto Miners

In the most recent months, the cryptocurrency mining business has been met with moratoriums in several regions of the United States and Canada. Those who wish to invest in cryptocurrency mining may now take advantage of tax benefits offered by Russia. The new crypto mining facility in east Siberia, which will cost $12 million and get direct backing from the government, will open soon.

Buryatia is a republic located in east Siberia and is a part of the Russian Federation. According to the local media, the Corporation for the Development of the Far East, which is controlled by the state, has announced the start of the cryptocurrency mining facility in Buryatia.

The plant will have 30,000 mining equipment, will employ one hundred people, and will use one hundred megawatts of electricity from the local power system. It is going to open in the first half of 2023 and will be owned and operated by BitRiver, which is the leading provider of cryptocurrency mining colocation services in Russia.

The mining center will be eligible for a wide range of benefits, including exemption from land and property taxes as well as a reduction in the income tax rate. For the mine operator, there will be a fifty percent decrease in the cost of the power.

The legal position of Buryatia, which is that of a “territory of advanced development” — a special economic zone that is encouraged to attract national and international investments — might provide an explanation for the help that the government is providing. It is the mission of the Corporation for the Development of the Far East, a wholly owned subsidiary of the Ministry for the Development of the Far East and Arctics, to provide financial backing for various investment endeavors.

Since the beginning of war in Ukraine and the financial sanctions that followed it, the Russian government has altered its anti-cryptocurrency posture, especially with regard to mining. This change came about as a result of the conflict in Ukraine. Gazprom Neft, a state-owned gas company, and BitRiver entered into a cooperation in July 2022 so that Gazprom Neft could provide BitRiver with power produced from petroleum gas. As part of the collaborative effort, BitRiver has begun creating a digital infrastructure in the oil fields where Gazprom supplies flare gas for cryptocurrency mining operations. These fields are located in Russia.


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Alameda Research’s FTX Tokens worth millions transferred

On February 7, wallets associated with the defunct Alameda Research company started sending and receiving FTX Tokens, totaling millions of dollars’ value (FTT). The activity in the Alameda wallets after the bankruptcy filing by FTX has been a major source of worry for the cryptocurrency community, with many members of this community calling into doubt the legitimacy of law enforcement authorities and the means by which these wallets are being accessed.

Brokenfish.eth, which is the address of an Alameda wallet, was used to receive over $2 million worth of FTT tokens from the BentoBox smart contract that was hosted on SushiSwap. The relevant smart contract operates as the ecosystem-wide vault for the whole Sushi decentralized payment system. Sam Bankman-Fried, who served as the previous chief executive officer of FTX, has a relationship with SushiSwap that goes back to the year 2020, when he succeeded Chef Nomi as the protocol’s top developer.

Within the range of $1.86 and $1.87, the “Alameda Research 4” wallet purchased more than one million FTT, which is equivalent to around $2.3 million. A loan position was also formed on Abracadabra using the wallet, and the loan is presently secured by 73,000 FTT and $31,000.

Many others saw the connection between the transfer of cash and the current bankruptcy proceedings and concluded that the court-appointed CEO of FTX, John Ray III, had authorized the transfer of funds. Ray III has not been coy about the fact that he wants to take control of the assets of the exchange as well as those of its subsidiaries in order to pay off the exchange’s obligations. The findings of FTX’s investigations led to the discovery of approximately $5.5 billion in liquid assets, of which more than $3 billion was owing to its top 50 creditors as of the 17th of January, when the company made the announcement.

This was not the first time in February that monies were transferred between wallets connected to the Alameda blockchain. The blockchain security company PeckShield issued a warning on February 2 indicating that “Alameda Consolidation” had acquired crypto funds worth a total of $13 million from three separate wallets.

The first one is a cryptocurrency exchange that goes by the name Bitfinex. It is estimated that 1,545 Ether (ETH) and around 6 million Tether (USDT) were transmitted, for a total of approximately $8.5 million. The remaining anonymous people sent roughly six million United States Dollars Coins (USDC) to the location associated with the Alameda Consolidation.


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Algorand Foundation Expands its Presence in India

In India, the Algorand Foundation has announced a number of new partnerships, one of which is a cooperation with educational institutions to establish instructional programs that would assist in the expansion of Web3 in the nation.

According to Anil Kakani, who was recently appointed to the position of Algorand’s national head for India, the collaborations seek to generate a sustained effect. He elaborated as follows: “We are poised to take center stage in India and throughout the globe to power world-changing solutions to increase access to financial services, healthcare, education, and so many other essential applications.” This statement was made in reference to the country of India.

In addition to the educational market, the organization is actively pursuing opportunities inside the country’s newly established businesses. A relationship between Algorand and T-Hub, an innovation hub with headquarters in Hyderabad, was also revealed. According to Srinivas Rao Mahankali, the Chief Executive Officer of T-Hub, the cooperation would assist local businesses in gaining access to finance from all around the globe and in scaling their initiatives on a global level.

Additionally, the Algorand Foundation has joined forces with the Clinton Foundation to become a technology partner for their recently established Global Climate Resilience Fund. Local companies will get assistance in connecting with carbon markets and monetizing carbon credits thanks to the fund’s contribution. Seed funding and business acceleration programs will be provided by the company to female-owned and -operated companies in an effort to expand access to financial markets. “I am pleased to be back in India, and particularly to witness the acceptance and excitement by people throughout the nation for technology that can so drastically and positively improve their quality of life,” said Staci Warden, CEO of the Algorand Foundation. “I am thrilled to be back in India.”

Warden said that the collaborations would assist in bringing blockchain closer to its full potential and will assist the local ecosystem in creating an economy that is more welcoming to everybody.

The Algorand Foundation has been working hard to significantly expand its influence around the world. The business made the announcement on the 13th of December 2022 that it had been selected to provide assistance for a bank and insurance guarantees platform in Italy.


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Gazprombank suggests banks be given more time to adjust to digital

Gazprombank, which is an unit of the main Russian government-owned gas business, Gazprom, has openly recommended that banks be given extra time before the implementation of the digital currency. Because of international financial restrictions and rising geopolitical tensions, progress on the country’s central bank digital currency (CBDC) initiative has picked up speed.

As was reported by local media on February 7th, Gazprombank, one of the 15 banks participating in the CBDC pilot, issued a public statement with a recommendation to proceed with caution regarding the interests of traditional banks. The statement read, “It is imperative that banks take measures to mitigate potential losses.” As a result, it is of the utmost importance to be aware of the possible dangers that are connected with the transition to a digital ruble and to approach its implementation with extreme care, giving the monetary system the time to readjust.

Nevertheless, the statement acknowledges that the CBDC will contribute to more openness across the whole of the Russian economic and financial system.

The Russian division of McKinsey calculated that conventional banks might potentially suffer losses of around $3.5 billion (250 billion rubles) in the first five years as a result of the adoption of CBDC. During the same time period, the consulting company predicted that the stores would make an annual profit of $1.1 billion.

The planning stages of a CBDC were initiated in Russia around the year 2020. The completion of the transition to the digital rouble, which is presently undergoing testing for settlement with the banks, is anticipated for this year. The most recent update to the Bank of Russia’s monetary policy indicates that the regulatory body would start the process of connecting all banks and credit institutions to the digital rouble network in the year 2024.

Additionally, the Central Bank of Russia has initiated the process of creating a cross-border settlement system that will make use of a CBDC. When Russia began a full-scale invasion of Ukraine at the end of February 2022, the nation was already facing rising financial and economic sanctions as a result of the intensification of the conflict between Russia and Ukraine.


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Global Efforts to Classify Cryptocurrencies

A significant cryptocurrency data aggregator known as CoinGecko and a cryptocurrency investment company known as 21Shares have teamed forces to develop a universal standard for categorizing the many different types of crypto assets.

The Global Crypto Classification Standard study was published on February 8 by CoinGecko and 21Shares. It outlines a standardized technique that can be used to classify cryptocurrency assets. The purpose of this work is to assist investors and regulators in gaining a better understanding of the particulars of each asset class in the cryptocurrency business, including the possibility for failures such as those that the sector experienced in 2022.

“In contrast to conventional financial assets, the nature of crypto assets may have a wide range of variations, both in terms of the asset itself and the protocol that underpins it,”

At the time this article was written, the website of CoinGecko listed more than 12,000 distinct cryptocurrencies, and each coin has its own set of traits and features that marked it apart from the others. The classification method used by CoinGecko and 21Shares is based on three main layers of categorization, which differentiate these hundreds of assets according to stack, market sectors, industries, and taxonomy.

The first level, known as the “crypto stack,” organizes crypto assets into categories such as centralized apps, decentralized applications, interoperable blockchains, and smart contract platforms, amongst others. The technique does not refer to the underlying token at any point in the first two tiers; rather, it exclusively discusses networks and protocols.

The second level is referred to as “market mapping by sectors and industries,” and it further divides cryptocurrencies into categories such as infrastructure, metaverse, and decentralized finance (DeFi), in addition to groups such as payment platform, lending, and developer tooling, amongst other categories. The technique makes an effort to classify the assets according to the category that is the most relevant to their use in situations when certain standards may be applied to more than one industry.

Based on the cryptocurrency taxonomy approach that was suggested by crypto analyst Chris Burniske in 2019, the third level was referred to as the “taxonomy of crypto assets.” Within this level, crypto assets were categorized according to related asset “superclasses.” The methodology developed by Burniske is based on a study written by Robert Greer in 1997 titled “What is an Asset Class Anyway?” Putting crypto assets into their respective superclasses, such as capital assets, assets that can be consumed or transformed, and assets that may be stored as value.

Dogecoin (DOGE), Bitcoin (BTC), Monero (XMR), and Zcash (ZEC) are some of the examples that may be found in the category of store of value assets (DOGE). This particular kind of crypto asset “cannot be consumed,” and it also does not provide any form of revenue. “However, it does have worth; it is a store of value asset,” is how the proposed categorization standard puts it.

The attempt by CoinGecko and 21Shares to bring about a worldwide crypto categorization standard is only one of the numerous efforts being made all around the world to classify cryptocurrencies. The Australian Department of the Treasury issued a consultation paper on “token mapping” on February 3, with the goal of developing its own taxonomy of crypto assets. Prior to this, Belgium’s Financial Services and Markets Authority was also soliciting comment on its categorization of crypto assets as securities, investment instruments, or financial instruments in July of 2022. This was done in order to make an informed decision.

According to Gonzalez, “while the categorization of digital assets is quite prevalent, many classification attempts are one-dimensional and mislead conventional investors by combining crypto assets, the investable tokens, directly with the protocols that are behind them.”

The executive also expressed optimism that the newly suggested standard would be able to appeal to retail and institutional investors, as well as governments all over the globe, as a result of 21Shares’ work with CoinGecko, a leading independent cryptocurrency statistics website.


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A group of nine banks has invested $45 million in Carbonplace

According to a news statement that was issued on February 8th, the blockchain-based carbon credit transaction network Carbonplace was successful in raising $45 million in an investment round from its nine founding banks, which together oversee $9 trillion in assets. The following financial institutions make up the banking system: BBVA, BNP Paribas, CIBC, Ita Unibanco, National Australia Bank, NatWest, Standard Chartered, SMBC, and UBS. The financial technology company headquartered in London has also made the announcement that it would transition into an independent business under the leadership of its newly appointed CEO, Scott Eaton.

According to Carbonplace, the company plans to use the investment to strengthen its platform and workforce. This will enable the company to scale its services to a larger client base consisting of financial institutions and seek partnerships with other market players involved in the carbon market, such as registries and stock exchanges around the world. Carbonplace has been called the “SWIFT [Society for Worldwide Interbank Financial Telecommunications] of carbon markets” because it will enable participants to share carbon data in real time. This will ensure a secure and traceable settlement of transactions. Carbonplace has been described as the “SWIFT [Society for Worldwide Interbank Financial Telecommunications] of carbon markets.”

Robert Begbie, CEO of NatWest Markets, commented on the news by citing research from McKinsey which showed that “global demand for voluntary carbon credits is anticipated to expand by a factor of 15 in the next few years.” He said that Carbonplace is in a unique position to address that need since the company offers scalable technology to organizations who are concerned about the environment.

Carbonplace has already conducted test transactions with a number of different organizations, including Visa and Climate Impact X, ahead of the anticipated debut of the service later on in this year. Carbonplace employs its own distributed ledger technology to conduct offset transactions. The company has praised digital wallets as a tool that “enables owners to accurately establish ownership to the market, therefore lowering the dangers of double counting and simplifying reporting.”


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Bitcoin (BTC) $ 26,129.00 1.78%
Ethereum (ETH) $ 1,573.17 1.37%
Litecoin (LTC) $ 64.28 0.71%
Bitcoin Cash (BCH) $ 207.20 0.74%