Day: June 26, 2023

MAS Proposes Open and Interoperable Framework for Digital Asset Networks

by Blockchain News

The Monetary Authority of Singapore (MAS) has unveiled a comprehensive report introducing a framework for the design of open and interoperable networks for digital assets. The report, titled “Enabling Open & Interoperable Networks,” is a collaborative effort between MAS and subject matter experts from the Bank for International Settlements’ Committee on Payments and Market Infrastructure (CPMI), with contributions from various financial institutions [1].

In addition to outlining the framework, the report explores the application of the CPMI-IOSCO principles for financial market infrastructures to evolving models of digital asset networks. It draws insights from industry pilots conducted under Project Guardian, an initiative by MAS in partnership with the financial industry. The objective of Project Guardian is to assess the feasibility of asset tokenization and Decentralized Finance, ensuring that emerging digital asset networks adhere to international standards that promote safety and efficiency within the financial market infrastructure.

As part of its ongoing efforts, MAS has expanded Project Guardian to encompass a broader range of financial asset classes. To support this expansion, MAS has established the Project Guardian Industry Group, consisting of 11 prominent financial institutions [2]. These institutions will lead industry pilots in asset and wealth management, fixed income, and foreign exchange.

Within the realm of asset and wealth management, several pilots are currently underway. HSBC, Marketnode, and UOB have successfully completed a technical pilot involving the issuance and distribution of a digitally native structured product. This pilot showcased the potential benefits of lower costs, reduced settlement times, enhanced customization, and wider distribution within the structured product chain. Another pilot, led by UBS Asset Management, is exploring the native issuance of a Variable Capital Company (VCC) fund on digital asset networks. This initiative aims to enhance fund distribution and facilitate improved secondary market trading of VCC fund shares, resulting in operational efficiencies for the industry. Additionally, Schroders and Calastone are collaborating to investigate the capabilities of a tokenized investment vehicle that can bundle and issue traditional investment securities using VCCs. Such a vehicle could provide cost-efficient investment allocation for retail and institutional investors while simplifying day-to-day operational processes.

In the fixed income and foreign exchange sectors, pilots involving tokenized asset-backed securities, tokenized bonds, and tokenized bank liabilities are being conducted. Standard Chartered, in collaboration with Linklogis, has developed an initial token offering platform enabling the issuance of asset-backed security tokens listed on the Singapore Exchange. The pilot demonstrated the feasibility of utilizing asset-backed tokenization to grant investors access to yield-generating tokens linked to cashflows from underlying trade finance and working capital loans. Furthermore, DBS Bank, SBI Digital Asset Holdings, and UBS AG are executing a pilot repurchasing agreement (repo) utilizing natively issued digital bonds. This initiative aims to enhance flexibility, operational efficiency, settlement speed, and cross-border distribution and settlement efficiency for capital market instruments on digital asset networks. Citi is also involved in a pilot project that focuses on the pricing and execution of digital asset trades on a distributed ledger. By leveraging ledger data, this initiative aims to improve post-trade reporting and analytics.

In a significant development, the Japan Financial Services Agency (JFSA) has become the first overseas financial regulator to join Project Guardian, forging a partnership with MAS. This collaboration will facilitate knowledge exchange and the sharing of best practices in digital asset innovation and asset tokenization, while ensuring the safeguarding of financial stability and integrity.

Mr. Leong Sing Chiong, Deputy Managing Director (Markets and Development) at MAS, expressed the institution’s cautious stance on cryptocurrency speculation while emphasizing the potential for value creation and efficiency gains in the digital asset ecosystem. He highlighted MAS’s commitment to collaborating with the industry to foster a responsible and innovative

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Hut 8从Coinbase Credit获得5000万美元信贷额度，推动数字资产挖掘与创新发展

by Blockchain News

Hut 8 Mining Corp.与Coinbase Credit合作，获得5000万美元的信贷额度。信贷包括1500万美元的定期贷款，另有2000万美元和1500万美元的可延迟提款贷款。利率将根据联邦基金利率加5.0%计算，信贷期限为364天。Hut 8的比特币将作为贷款担保，并由公司提供担保。该信贷额度将支持Hut 8的运营和扩张计划。作为北美重要的数字资产挖掘和高性能计算基础设施提供商，Hut 8通过创新、可持续和具有领导地位的表现不断推动数字资产革命。

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Understanding the Rise of Non-Fungible Tokens

by Blockchain News

 

 Non-fungible tokens are currently garnering attention in the digital market. To verify their ownership and authenticity, NFTs use blockchain technology. They represent a wide variety of things, such as art, music, games, and even real estate. The concept of NFTs has gained popularity and acceptance. This article details the rise of NFTs and the potential benefits of investing in them.

Understanding Non-Fungible Tokens?

Tokens that are not fungible are assets that are encoded and stored on blockchain. Each NFT has its own unique identifier and associated metadata, distinguishing it from all other tokens. Non-fungible tokens can be traded for money, or in digital assets; their value is determined by market demand and owners.

For example, an exchange could be used to create a token for an image of a banana. NFTs could be highly sought-after and worth millions or worthless, depending on the buyer. Cryptocurrencies can be seen as tokens; however, they can be interchanged. This is a major distinction from non-fungible tokens, which are not interchangeable.

How Do Non-Fungible Tokens Work?

NFTs are created through minting, a process where information is stored on a blockchain. This involves validating NFT data, creating an additional block, and closing it. This process also uses smart contracts to determine ownership and control of NFT transfers.

 

When new tokens are created, they are each given their own ID associated with a blockchain address. Every token has an owner and the ownership info (the address the token is located at) is visible to the public. Even if 5,000 identical NFTs are minted, each has a distinct identifier and can be distinguished.

Benefits of Non-Fungible Tokens

Non-fungible tokens have several potential benefits for both creators and buyers. Here are some NFT benefits:

 

  • Artists, musicians, and even Twitter users can monetize their unique digital creations through NFTs.

  • NFTs provide proof of ownership and authenticity, which can increase digital assets’ value and make them more sought after.

  • Investing and owning a digital asset with NFTs is a great way for buyers to build wealth over time.

  • NFTs also provide transparency and security, as blockchain technology ensures their integrity. 

  • Unlike traditional physical assets, non-fungible tokens can be transferred and traded easily, making them a more liquid investment

  • NFTs provide a more efficient way to market physical assets. Tokenization simplifies the sales process by removing middlemen and allowing sellers to directly reach potential customers. This enables artists to securely offer their works without third parties.

How Can I Buy NFTs?

To buy NFTs, one needs Ether which is stored in a digital wallet. There are several online NFT marketplaces, such as OpenSea, Rarible that offer these purchases. Ethereum-based meme coins such as Shiba Inu aim to provide financial independence outside of centralized control. It is critical to assess the Shiba Inu price before purchasing.

Endnote

Non-fungible tokens have revolutionized the digital world by providing an innovative way to own and trade unique digital assets. NFTs have opened up new opportunities for creators to monetize their work and for buyers to invest in one of the unique ways of digital assets. As NFTs gain popularity, it is vital to understand the technology behind them. Whether you are a creator

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Hut 8 Secures US$50 Million from Coinbase Credit to Enhance Financial Flexibility and Support Growth Initiatives

by Blockchain News

Hut 8 Mining Corp., a prominent North American mining pioneer and high-performance computing infrastructure provider, has recently made a significant announcement. The company has secured a credit facility of US$50 million through a partnership with Coinbase Credit, Inc., a leading lender in the cryptocurrency industry. This credit facility will provide Hut 8 with additional financial flexibility and support its general corporate purposes.

The credit facility consists of a US$15 million term loan, which is expected to be funded shortly after the closing of the agreement. Additionally, the credit facility offers the option to draw an additional US$20 million delayed-draw term loan in a second borrowing, taking place between one and two months following the initial funding. Furthermore, there is a provision for an additional US$15 million delayed-draw term loan tranche in a third borrowing within 15 business days after the completion of Hut 8’s previously announced merger with U.S. Data Mining Group, Inc., also known as “US Bitcoin Corp.” These borrowing options are subject to maintaining a specified loan-to-value ratio.

To determine the interest rate, the amounts borrowed under the credit facility will bear interest at a rate equal to the greater of the federal funds rate on the borrowing date or 3.25%, plus 5.0%. The credit facility has a maturity of 364 days from the date of the first borrowing. The borrower’s interest in certain Bitcoin held in the custody of Coinbase Custody Trust Company, LLC serves as collateral for the loan obligations. Furthermore, the credit facility is guaranteed by Hut 8, providing an added layer of assurance for the lender.

CEO Jaime Leverton expressed enthusiasm for the credit facility, stating, “This credit facility gives us additional financial flexibility. At the same time, it ensures that we can maintain our dynamic Bitcoin treasury management strategy going into the halving.” This development aligns with Hut 8’s strategic objectives and will contribute to its ongoing operations, growth initiatives, and expansion plans.

Hut 8 is a key player in the digital asset mining landscape, focusing on innovation and powered by a team of visionary technologists. With two operational digital asset mining sites located in Southern Alberta, Hut 8 boasts one of the highest capacity rates in the industry. Additionally, the company holds a substantial inventory of unencumbered, self-mined Bitcoin, solidifying its position as a major player in the global digital asset mining sector.

Moreover, Hut 8 is revolutionizing the data center industry by creating the first hybrid data center model that serves both traditional high-performance computing (Web 2.0) and emerging digital asset computing sectors, blockchain gaming, and Web 3.0. With over 36,000 square feet of geographically diverse data center space, Hut 8 is committed to sustainable practices, with its electrical grids powered by significant renewable and emission-free resources.

It is worth noting that Hut 8 made history by becoming the first Canadian digital asset miner to list on the Nasdaq Global Select Market, a significant achievement that underscores its market presence and leadership position. The company’s relentless pursuit of innovation, combined with its passion for digital asset revolution, enables it to create value and positive impacts for shareholders and future generations.

While this announcement brings about positive prospects for Hut 8, it is important to exercise caution regarding forward-looking information. Factors such as security threats, regulatory changes, market demand, and unforeseen events like the COVID-19 pandemic and climate change can impact the company’s operations and performance. Hut 8 acknowledges these risks and uncertainties, and although they consider their statements reasonable, actual results may differ materially from the forward-looking information provided.

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Hong Kong Embraces Web3.0 and Advances as an International Crypto Hub, said Chief Executive

by Blockchain News

Chief Executive Li Ka-chung expressed his delight at attending the “Convergence of Finance, Innovating the Future” seminar and the Hong Kong Economic Times Business Awards ceremony hosted by the Hong Kong Economic Times. Addressing esteemed guests and friends, Li Ka-chung emphasized Hong Kong’s potential in leveraging its strengths as an international financial center and driving the development of cutting-edge technologies, particularly in the realm of Web3.0.

Renowned for its status as one of the world’s freest economies and the largest offshore RMB hub, Hong Kong boasts a highly open and international market, aligned regulatory frameworks, a robust legal system, and a pool of talented professionals. As a city under the “One Country, Two Systems” framework, Hong Kong enjoys the unique advantage of bridging global and Chinese advantages, acting as a two-way gateway connecting the nation and the world’s financial markets.

The current administration has made significant efforts to consolidate Hong Kong’s position as an international financial center. Notably, in the past two months, the “Bond Connect” Northbound trading link was officially launched in mid-May. Additionally, the Ministry of Finance issued the first tranche of RMB 12 billion government bonds in Hong Kong this month, with a total of RMB 30 billion to be issued throughout the year. Furthermore, the Hong Kong Stock Exchange introduced the “HKD-RMB Dual Counter Model” and dual counterparty mechanism in the local securities market.

Hong Kong has established itself as a leader in financial services and offshore RMB business. Moreover, it has emerged as Asia’s green finance hub, with the issuance of green and sustainable bonds reaching a record high of USD 80.5 billion last year, representing a growth of over 40% compared to the previous year. Hong Kong’s share in the Asian market for such bonds exceeded one-third, positioning it as the leading city in Asia. In February of this year, the government issued the world’s first government-backed tokenized green bond, contributing to the sustainable and responsible development of the virtual asset industry while embracing Web3.0-related financial innovations.

The government’s embrace of financial innovation showcases its determination to develop Hong Kong as an international innovation and technology center under the national “14th Five-Year Plan.” The government unveiled the “Hong Kong Innovation and Technology Development Blueprint” at the end of last year, introducing several policy measures aligned with four major development directions.

Notably, Hong Kong’s commitment to nurturing an innovative and technological ecosystem has received global recognition. According to the “2023 Global Startup Ecosystem Report,” Hong Kong ranked second among the top “Emerging Ecosystems” globally and first in Asia. This ranking affirms Hong Kong’s determination to develop a thriving startup ecosystem and demonstrates its readiness to compete globally and become an international innovation and technology hub.

To enhance the city’s innovation and technology ecosystem, the government has allocated HKD 10 billion to establish the “Industry-University-Research Collaboration Program” aimed at accelerating the commercialization of outstanding research achievements in Hong Kong. Efforts are also underway to establish a microelectronics research institute and an artificial intelligence supercomputing center, providing comprehensive support to local scientific research

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Hong Kong Embraces Web3.0 and Advances as an International Crypto Hub, said Chief Executive

by Blockchain News

Chief Executive Li Ka-chung expressed his delight at attending the “Convergence of Finance, Innovating the Future” seminar and the Hong Kong Economic Times Business Awards ceremony hosted by the Hong Kong Economic Times. Addressing esteemed guests and friends, Li Ka-chung emphasized Hong Kong’s potential in leveraging its strengths as an international financial center and driving the development of cutting-edge technologies, particularly in the realm of Web3.0.

Renowned for its status as one of the world’s freest economies and the largest offshore RMB hub, Hong Kong boasts a highly open and international market, aligned regulatory frameworks, a robust legal system, and a pool of talented professionals. As a city under the “One Country, Two Systems” framework, Hong Kong enjoys the unique advantage of bridging global and Chinese advantages, acting as a two-way gateway connecting the nation and the world’s financial markets.

The current administration has made significant efforts to consolidate Hong Kong’s position as an international financial center. Notably, in the past two months, the “Bond Connect” Northbound trading link was officially launched in mid-May. Additionally, the Ministry of Finance issued the first tranche of RMB 12 billion government bonds in Hong Kong this month, with a total of RMB 30 billion to be issued throughout the year. Furthermore, the Hong Kong Stock Exchange introduced the “HKD-RMB Dual Counter Model” and dual counterparty mechanism in the local securities market.

Hong Kong has established itself as a leader in financial services and offshore RMB business. Moreover, it has emerged as Asia’s green finance hub, with the issuance of green and sustainable bonds reaching a record high of USD 80.5 billion last year, representing a growth of over 40% compared to the previous year. Hong Kong’s share in the Asian market for such bonds exceeded one-third, positioning it as the leading city in Asia. In February of this year, the government issued the world’s first government-backed tokenized green bond, contributing to the sustainable and responsible development of the virtual asset industry while embracing Web3.0-related financial innovations.

The government’s embrace of financial innovation showcases its determination to develop Hong Kong as an international innovation and technology center under the national “14th Five-Year Plan.” The government unveiled the “Hong Kong Innovation and Technology Development Blueprint” at the end of last year, introducing several policy measures aligned with four major development directions.

Notably, Hong Kong’s commitment to nurturing an innovative and technological ecosystem has received global recognition. According to the “2023 Global Startup Ecosystem Report,” Hong Kong ranked second among the top “Emerging Ecosystems” globally and first in Asia. This ranking affirms Hong Kong’s determination to develop a thriving startup ecosystem and demonstrates its readiness to compete globally and become an international innovation and technology hub.

To enhance the city’s innovation and technology ecosystem, the government has allocated HKD 10 billion to establish the “Industry-University-Research Collaboration Program” aimed at accelerating the commercialization of outstanding research achievements in Hong Kong. Efforts are also underway to establish a microelectronics research institute and an artificial intelligence supercomputing center, providing comprehensive support to local scientific research

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Largest Weekly Inflows in Digital Assets in Over a Year, Led by Bitcoin

by Blockchain News

In a significant shift of sentiment, digital asset investment products experienced their largest single weekly inflows since July 2022, totaling a substantial $199 million, according to CoinShares report. This surge effectively corrected almost half of the prior nine consecutive weeks of outflows, signaling renewed investor confidence in the market.

Bitcoin emerged as the primary beneficiary, capturing a staggering $187 million in inflows last week, which accounted for an impressive 94% of the total funds. This surge in Bitcoin investment comes amidst one of the largest price surges in recent times, as the cryptocurrency experienced a remarkable 20% increase over the course of the week.

Conversely, short-bitcoin products continued to face outflows for the ninth consecutive week, with a total of $4.9 million withdrawn.

However, this positive sentiment did not extend to altcoins, as they only witnessed minor inflows. Ethereum, the second-largest cryptocurrency by market capitalization, attracted $7.8 million in inflows. Although this figure represented a mere 0.1% of assets under management (AuM) compared to Bitcoin’s 0.7% inflows, it indicated a relatively lower appetite for Ethereum in the current market.

The positive market shift was primarily attributed to recent announcements made by high-profile exchange-traded product (ETP) issuers. These issuers have filed applications for physically backed exchange-traded funds (ETFs) with the US Securities and Exchange Commission, generating renewed optimism among investors.

The total assets under management (AuM) for digital asset investment products now stand at an impressive $37 billion, reaching their highest point since before the collapse of 3 Arrows Capital.

While Bitcoin experienced significant inflows, outflows persisted for short-bitcoin products. Over the course of the past nine weeks, outflows accounted for 60% of the total AuM, further highlighting the divergence in investor sentiment.

Other altcoins, including XRP and Solana, saw only marginal inflows of $0.24 million and $0.17 million, respectively. However, the improved market sentiment did encourage some investors to explore multi-asset investment ETPs, resulting in $8 million in inflows during the previous week.

Overall, the surge in inflows into digital asset investment products, particularly Bitcoin, suggests a growing confidence among investors, possibly driven by the anticipation of new physically backed ETFs in the US market. While altcoins have yet to witness a substantial boost, the market remains dynamic, and investor preferences may shift as new opportunities emerge.

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NEAR Protocol Expands Gaming Ecosystem with Vortex Gaming Partnership, Strengthening Web3 Integration

by Blockchain News

NEAR Protocol has expanded its gaming ecosystem by partnering with Vortex Gaming, a Web3 subsidiary of INVEN, Korea’s largest game media and community. This collaboration aims to attract more users and companies to the NEAR ecosystem while strengthening the NEAR game ecosystem. INVEN, with a monthly active user count of 7.2 million, brings valuable expertise and content to the partnership.

In addition to onboarding Vortex Gaming’s content onto NEAR Protocol, the NEAR Foundation and INVEN plan to support the growth of Vortex Gaming and enhance brand awareness through active collaboration, including offline hackathons and events to foster developer talent.

INVEN has been a leading company in the game industry for over 20 years, driving development as a top online game media platform. Vortex Gaming, a content-based game community optimized for Web3 games, aims to break stereotypes by offering specialized content, such as in-depth analysis of in-game economies. Leveraging their experience in building Web2 communities, Vortex Gaming plans to establish a strong user base by incorporating high-quality content and INVEN’s existing wide pool of users.

NEAR Protocol, a global Layer 1 blockchain, focuses on usability and scalability. It also serves as a Blockchain Operating System (BOS), allowing Web2 companies and developers to easily build decentralized apps and experiences for the open web. With features like FastAuth, NEAR Protocol reduces entry barriers in the Web3 gaming industry and works alongside Vortex Gaming to popularize the NEAR ecosystem.

The CEO of Vortex Gaming, Hoon Jai Lee, aims to build an integrated gamer community encompassing both Web3 and traditional Web2 gamers by providing high-quality content for both. This community-driven approach includes incentivizing gamers to create content such as character builds and game guides.

Marieke Flament, CEO of NEAR Foundation, expects the partnership with INVEN to further enhance NEAR’s sustainable game ecosystem, following the success of leading companies in the gaming industry. Scott Lee, Co-CEO of NEAR Korea, highlights the importance of community in maintaining content competitiveness and believes that onboarding Vortex Gaming will strengthen NEAR’s position as the optimal mainnet in the Web3 game ecosystem, accelerating its development.

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Federal Reserve Governor Michelle W. Bowman Stresses Banking Supervision including Digital Assets

by Blockchain News

Governor Michelle W. Bowman, a member of the Board of Governors of the Federal Reserve System, emphasized the need for a responsive and responsible regulatory framework in the banking sector. Speaking at an event in Salzburg, she discussed the importance of adapting to changing economic conditions and emerging risks while ensuring transparency and open debate in regulatory adjustments.

Governor Bowman highlighted recent stress in the banking system and the failures of certain banks, underscoring the deficiencies in risk management practices and supervisory priorities. To address these issues, she proposed an independent third-party review to thoroughly analyze the factors contributing to recent bank failures and stress in the banking system. The goal is to provide a comprehensive understanding of the events and improve the impartiality and effectiveness of future reviews.

Furthermore, Governor Bowman emphasized the need for effective supervision and regulation, focusing on core banking risks such as liquidity and interest rate risk. While supporting certain reforms, she expressed concern that higher capital requirements could hinder bank lending and competition without addressing the underlying effectiveness of supervision. She debunked the notion that recent bank stress resulted from a less assertive supervisory approach, highlighting the strength and resilience of the banking system today compared to pre-2008 financial crisis.

Governor Bowman called for improvements in supervision, transparency in supervisory expectations, and a clear regulatory approach to novel banking activities, including including banking as a service and digital assets. She stressed the importance of evaluating the consequences of regulatory revisions and considering the impact on the broader financial system. While supportive of Basel III endgame reforms, she emphasized the need for public comment and transparency in the rulemaking process.

Governor Bowman also urged policymakers to be mindful of the impact of capital requirements on international competition and the shadow banking system. Higher capital requirements could create a disadvantage for regulated banks compared to non-bank competitors, potentially shifting financial activity out of the regulated banking system.

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Bitcoin (BTC) $ 38,773.39 2.65%
Ethereum (ETH) $ 2,094.69 1.52%
Litecoin (LTC) $ 71.67 3.12%
Bitcoin Cash (BCH) $ 225.67 1.75%