Digital Asset’s Post

"SIX Digital Exchange (SDX) announces that digital asset issuances facilitated on its platform will surpass 1 billion Swiss Francs (CHF) with the settlement of the CHF 200mn bond by the World Bank priced on 15 May (World Bank partners with Swiss National Bank and SIX Digital Exchange to advance digitalization in capital markets). This achievement marks a groundbreaking advancement in the realm of institutional adoption of digital assets, as SDX continues to lead the way in providing innovative solutions in partnership with customers and regulators. The participation of key issuers, including The World Bank, UBS AG, the City of Lugano, the Canton of Zurich, the Canton of Basel City, the City of St. Gallen and SIX Group AG, has been instrumental in advancing the Swiss Financial Centre’s digital transformation journey. Notably, several issuances have been part of SNB’s Project Helvetia Phase III, enabling settlements in Swiss Franc (CHF) wholesale Central Bank Digital Currency (wCBDC). Switzerland is the sole major financial center that has enabled the settlement of securities transactions in wCBDC." #switzerland #cryptoadoption #digitalassets #cbdc #crypto #cryptoassets

This week, Yuval Rooz, co-founder and CEO of fintech firm Digital Asset, said utility is a critical part of the digital assets market. “We are moving to a world that talks about the virtual world where every asset, whether it’s backed by something physical or pure financial asset, is going to be digital, front and back, all the way from issuance throughout its entire life cycle.” If you are attending the Point Zero Forum this July in Zurich, you can hear more thoughts from Yuval and the team at Digital Asset. #DisruptionBanking will be there: https://lnkd.in/eX_r9zXF

When the going gets tough, the desperate go crypto. Bloomberg reports: "As Credit Suisse spiraled toward insolvency early last year, a group of Swiss bankers, technocrats and regional officials were already busy laying the groundwork for a new type of financial infrastructure. Nine months after the Swiss bank was rescued by crosstown rival UBS Group AG in March 2023, the Zurich and Basel cantons issued the first so-called tokenized bonds settled in Switzerland’s experimental digital currency. The Lugano city government followed suit shortly after. On Thursday, the country’s central bank announced that it will extend the pilot program under which those bonds were sold by two years, describing it as “very successful.”" It must be if you say so. Just as every kid born in recent memory is a genius cos their folks think so. We're gonna solve global warming in no time! Well, that and cracking the immortality code. "The central premise of tokenization is, at least on the face of it, relatively simple. By representing an asset like a stock or a bond in the form of digital tokens on a blockchain, everything from settlement to recording ownership can be made faster, less complex and potentially more secure, its proponents argue." Nope. You don't need tokenisation or the blockchain for this. Just a single ledger that everyone uses. But every Tom, Dick and Harry country and every Jack and Jill bank want their own dedicated blockchains: "There are hundreds of tokenization projects underway around the world, some run in-house by large global lenders like JPMorgan Chase & Co. and others overseen by central banks or public-sector bodies like the Bank for International Settlements." Guess what this will result in? A ⭐ for you if you thought intermediation, for the fragmented global markets is one of its drivers: https://lnkd.in/gwVkqjKs. "Use cases range from pillars of the world economy like trade finance to more gimmicky applications, such as tokenizing a centuries-old violin." Which in the latter case doesn't work without a custodian (aka intermediary): https://lnkd.in/dNVttJPa. "Besides in Switzerland, tokenized bonds are also listed in markets including the US and Luxembourg." And yet, despite existing for years, they haven't taken the world by storm. 🤔 Don't worry, this is crypto so they have an excuse: "“The lack of digital cash compatible with distributed ledger technology is often a significant obstacle to advancing this technology,” Moody’s Corp. said in a statement on Friday. “Switzerland is the most advanced in this area.”" Yup, the reason a useless technology hasn't achieved mainstream success is because said useless technology hasn't been extended to another area that it is equally useless for. 🤦🏻 And you thought the dog ate my homework is a lame excuse. A cause for the desperation? https://on.ft.com/4crBhgu. But if your experiment was so successful, this shouldn't be a concern, no? 🤔 https://lnkd.in/ga4EJE_R

The Hong Kong Monetary Authority recently set out expectations for banks looking to provide digital asset custody services, and sell and distribute tokenised products. This guidance continues the momentum of digital asset regulation in Hong Kong and aims to deliver more certainty for banks and securities firms seeking to capitalize on the latest developments. https://lw.link/WQOLge #DigitalAssets

According to a recent article on The TRADE, a new crypto trading venue has been launched with a focus on serving banks and securities firms. This trading venue, called RULEMATCH, aims to address the evolving market infrastructure for digital assets. It provides integrated post-trade settlement and ultra-low latency capabilities for participants, including hedge funds and high-frequency traders. RULEMATCH facilitates multilateral net settlement among participants and addresses counterparty risk through a strict delivery-vs-payment process and collateral requirements. The platform offers benefits such as execution times as low as 30 microseconds and requires up to 75% less upfront liquidity compared to existing trading venues. David Riegelnig, the CEO of RULEMATCH, highlighted the interest and activity of banks and financial institutions in the crypto market. He mentioned that many of them have faced challenges related to market infrastructure deficiencies such as capital efficiency, counterparty risk, compliance, and latency. Riegelnig stated that RULEMATCH allows these institutions to expand their activities and deploy strategies akin to traditional markets, which he believes will contribute to liquidity and further development in the digital asset market. The initial launch of RULEMATCH includes #btc and #ethereum spot trading against USD. The platform acts solely as a market operator and does not provide brokerage, market-making services, or custody, except for the settlement process. Liquidity in the central-limit-order book is assured by designated market makers, including Flow Traders, with whom RULEMATCH has entered into a strategic partnership. RULEMATCH has garnered support from a select group of investors, including Consensys Mesh, Flow Traders, and FiveT Hydrogen AG Fintech. Currently, participants are limited to banks and securities firms from specific countries, with notable members including BBVA and DLT Finance, while other institutions are being onboarded. The trading venue utilizes Nasdaq technology for pre-trade risk checks, trade matching, and market surveillance. Magnus Haglind, SVP and Head of Products, Marketplace Technology at Nasdaq, expressed confidence in their technology's ability to support the ongoing development of the digital asset ecosystem as traditional and digital asset markets continue to converge.

In an interview with FinanceAsia, BCG’s David Chan shares insights around the value potential of a digital currency, following the Hong Kong Monetary Authority (HKMA)'s newly-launched report outlining key findings from its recent #eHKD pilot programme. BCG participated in the “Settlement of Tokenised Assets” strand of the pilot to evaluate the value-add of a hypothetical eHKD to Hong Kong's financial ecosystem. Read the interview here to discover what our pilot use case revealed: https://lnkd.in/gzjvipVH #ehkdpilot #CBDC #FinTech #Web3 #DigitalCurrency #HKFTW2023

🌱 Innovation in Sustainability: HSBC and The Bank of East Asia, Limited (BEA) Asia Pioneer Digital Green Bonds for DLT Repo 🌱 In a groundbreaking move, HSBC and Bank of East Asia have set a new benchmark in the integration of sustainability with financial technology. By utilizing digital green bonds for Distributed Ledger Technology (DLT) repo transactions, these institutions are not only advancing the cause of green finance but are also showcasing the transformative potential of blockchain in the financial sector. Key Highlights: - Sustainable Finance Meets Innovation: This initiative marks a significant step forward in the use of digital instruments for promoting environmental sustainability through green bonds. - Enhancing Efficiency and Transparency: Leveraging DLT for repo transactions introduces unprecedented levels of efficiency, transparency, and security, setting a new standard for the industry. - Future of Finance: This collaboration between HSBC and Bank of East Asia underscores the growing importance of sustainable finance solutions and the pivotal role of technology in shaping the future of the financial landscape. Why It Matters: The successful deployment of digital green bonds for DLT repo transactions is a testament to the potential of blockchain technology in revolutionizing financial services. By prioritizing sustainability and leveraging cutting-edge technology, HSBC and Bank of East Asia are leading by example, demonstrating how financial institutions can contribute to a greener future while enhancing operational efficiencies. Join the Conversation: - What impact do you think digital green bonds and DLT will have on the future of green finance? - How can other institutions leverage technology to further sustainability goals? We invite you to share your thoughts and insights on this pioneering initiative. As we witness the merging paths of sustainability and technology, it's clear that the future of finance is not just digital but also green. https://lnkd.in/d3BijPWD Venu Borra Jonathan Garcia Amine Echtati Chris Sunderman Bob Gravestijn Sean White #HSBC #BankOfEastAsia #GreenBonds #DLT #Sustainability #FinTech #Innovation #DigitalFinance

In a world where the pace of innovation continues to accelerate, the realm of global commodities transactions is witnessing a transformative shift. The introduction of stablecoins is redefining the landscape, offering an efficient, secure, and cost-effective alternative to traditional fiat settlements. Join us in examining how these digital assets can enhance operational efficiencies, mitigate transaction risks, and usher in a new era of financial transactions. https://lnkd.in/e_2wJXhf

UBS, DBS Bank & SBI have completed the world’s 1st live repurchase transaction (Repo) on a public blockchain for a native-issued JPY digital bond, with the transaction being automatically & instantly settled using regulated digital payment tokens in 3 jurisdictions Japan, Singapore & Switzerland. Announcement - https://lnkd.in/gHd85yZH follow Caproasia | Driving the future of Asia Announcement: “The transaction involved a repo to borrow tokenized Japanese Yen (JPY) against a JPY-denominated natively-issued digital bond, with the borrowed tokenized JPY used to finance the purchase of the same bond. The subsequent digital bond redemption and payment of principal and interest at maturity was executed on-chain as well, demonstrating the potential to cover an entire transaction lifecycle on a public blockchain.” Mike Dargan, UBS Group Chief Operations & Technology Officer: “With this pioneering transaction, we proved the feasibility of executing a fully automated and instantly settled transaction across several jurisdictions by leveraging a public DLT network under a strict compliance framework. The flexible nature of our UBS Tokenize service, allowed our partners to easily adapt and leverage our innovative product framework and technology capabilities, to their infrastructure and transaction needs.” Fernando Luis Vázquez Cao, CEO of SBI Digital Asset Holdings: “At SBI Digital Asset Holdings (SBI DAH), we are building an institutional grade digital asset ecosystem and are ready for its commercialization. This groundbreaking transaction demonstrates what can be done in Japan and cross-border, in providing innovative and efficient products and services to the market and clients. It is also an example of the strength of partnerships SBI DAH has with large global institutions and across the SBI group, with SBI SECURITIES as counterparty to the repo transaction and Shinsei Trust & Banking as the issuer of JPY stablecoin.” UBS, DBS Bank, SBI Digital Asset Holdings