Lưu trữ cho từ khóa: banking

Công nghệ

DBS Bank rolls out new ‘Token Services’ for blockchain banking

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DBS Bank has introduced DBS Token Services, a new blockchain-based offering designed to streamline institutional banking processes. 

The DBS Token Services will integrate the bank’s Ethereum (ETH) Virtual Machine-compatible permissioned blockchain, its core payment engine, and multiple industry payment infrastructures, according to a press release from DBS.

Real-time payments via the blockchain

Smart contracts enable institutions to program the governance of funds, including Treasury Tokens, Conditional Payments, and Programmable Rewards. This switch will allow real-time payment settlements using a permissioned blockchain, a system where only authorized participants can interact. 

For those unfamiliar with the technology, tokenization in finance refers to turning assets into digital tokens that can be traded or managed more efficiently. Smart contracts are self-executing agreements that automatically enforce the terms of a contract, adding security and transparency to transactions. 

By doing this, DBS aims to provide a more efficient and secure banking experience for institutions.

This launch follows DBS’s previous blockchain experiments, including a treasury token pilot and blockchain-based government grants. 

The bank is also expanding into crypto options trading, signaling its broader commitment to blockchain and digital assets.

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Russia’s central bank to probe crypto-linked cross-border transfers, banking channels

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The Bank of Russia is planning to investigate cross-border crypto transfers by residents, focusing on banking channels to assess the volume of crypto-related operations.

Russia‘s central bank will conduct an investigation into cross-border crypto transactions by residents in Q4 and Q1 2025, according to its latest oversight program in a bid to identify and quantify operations involving the purchase and sale of cryptocurrencies.

The investigation will focus on key factors such as transaction forms, transfer directions, counterparties, and the banks facilitating these transfers, the central bank said in a statement. The study will include major financial institutions like Raiffeisenbank, Citibank, MTS Bank, Unistream, and several regional banks, including Asia-Pacific Bank, Ak Bars Bank, and Avangard.

The regulator’s statistics department will analyze the volume and value of crypto-related cross-border transfers to assess their impact on the broader financial system.

The move comes as crypto adoption in Russia continues to rise. Per the latest research, nearly 20% of Russians have used cryptocurrency, while over 65% are aware of it but lack detailed knowledge. Despite this growing awareness, most Russians do not currently hold any digital tokens, with only a small fraction using crypto for savings or investment purposes.

In June, a research report from fintech company Triple A showed that approximately 6% of Russians hold cryptocurrency, equating to over 9 million individuals, suggesting that more than 12% of the working population has acquired cryptocurrencies.

In April 2022, Russia’s prime minister Mikhail Mishustin revealed in the State Duma that more than 10 million citizens possess crypto wallets, which could contain over 10 trillion rubles (exceeding $107 billion at current rates). However, he did not disclose the source or methodology behind this estimate.

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Singapore’s DBS to launch OTC crypto options for institutional investors

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Banking giant DBS is set to launch crypto options and structured notes for institutional and accredited clients, becoming the first Asian bank to offer such products.

Singapore-based DBS Bank announced plans to introduce over-the-counter cryptocurrency options trading and structured notes for eligible institutional investors and accredited wealth clients starting in Q4 2024.

In a Sept. 17 press release, the bank said the move positions it as the first financial lender in Asia to offer financial products linked to the value of Bitcoin (BTC) and Ethereum (ETH). DBS group head of trading and structuring Jacky Tai says the move comes as professional investors are “increasingly allocating to digital assets in their portfolios.”

“Now, our clients have an alternative channel to build exposure to the asset class and incorporate advanced investment strategies to better manage their digital asset portfolios.”

Jacky Tai

So far, the bank allows clients to trade crypto and security tokens via its own crypto arm DBS Digital Exchange. With the new venture, clients could gain exposure to crypto through options trading and structured notes, potentially allowing for yield on “fiat or take delivery of the underlying cryptocurrency,” the press release reads.

“For instance, a client seeking to manage the inherent volatility of Bitcoin may buy a put option, which gives the client the right to sell Bitcoin at a fixed price at a future date, even if Bitcoin prices fall below the fixed price by that future date.”

DBS

Although the bank deepens its web3 roots, crypto options and structured notes will still be available only to eligible institutional investors and accredited clients of DBS Private Bank and DBS Treasures Private Client, per the press release.

In late August, DBS launched a blockchain-based solution utilizing smart contracts to streamline government grant disbursements. The bank indicated that the pilot aimed to demonstrate how these programmable grants could enhance transparency and efficiency in the grant distribution process.

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Latin America’s Nubank sunsets trading of its Nucoin crypto

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Brazilian Nubank has abruptly halted trading of its Nucoin cryptocurrency, citing a need to protect users from potential market volatility.

Digital fintech Nubank is closing its cryptocurrency, suspending immediately all trading within its app.

In a Sept. 10 blog post, Nubank said it has decided to cease its purchase and sale of its cryptocurrency to “prevent market volatility,” adding that those holding at least 1,745 Nucoins can be redeemed the token for Bitcoin (BTC) or USD Coin (USDC) until Dec. 9. Those who do not redeem their tokens by this deadline will still be able to use them for various in-app benefits.

“From now on, the ability to buy and sell Nucoins within the app will no longer be available. Trading has been suspended, and Nucoins will only be used for redeeming benefits and products within the app.”

Nubank

Nucoin was launched on Polygon (POL) in late 2022 as part of a reward program intended to offer customers various perks, including discounts and special benefits.

While the exact reason behind the move remains unclear, the sudden policy shift comes amid increasing scrutiny over Nubank’s financial health, with concerns about rising non-performing loans and asset quality. According to Bloomberg, the bank’s portfolio of troubled loans has reached levels “above industry norms,” and while its stock has surged by over 60% this year, some analysts consider it “overvalued,” per a Bloomberg report.

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Switzerland’s fourth-largest bank ZKB launches crypto services

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Zurich Cantonal Bank, Switzerland’s fourth-largest bank, has launched crypto trading and custody services, expanding its financial offerings.

Zurich Cantonal Bank, Switzerland‘s fourth-largest bank, has officially entered the crypto market, offering its clients the ability to trade and store Bitcoin (BTC) and Ethereum (ETH).

In a Sept. 4 press release, the bank said the new offering is integrated into its existing digital platforms, including ZKB eBanking and ZKB Mobile Banking. The bank has partnered with Crypto Finance AG, a subsidiary of Deutsche Börse Group, to execute crypto trades, the press release reads.

Alexandra Scriba, head of institutional clients & multinationals at ZKB, says customers and third-party banks will not need their own wallet and do not have to worry about storing their private keys, as the bank will handle both processes.

ZKB’s entry into the crypto space is not just limited to its own clients as the bank is also offering a business-to-business solution that enables other Swiss banks to provide crypto trading and custody services. Per the press release, Thurgauer Kantonalbank, a Swiss cantonal bank, has become the first partner bank to adopt this service.

The latest move is continuation of ZKB’s latest efforts to foray into the crypto market as in recent years, the bank explored blockchain technology extensively, including its participation in the issuance of the world’s first digital bond on the SIX Digital Exchange in 2021 and its role as joint lead manager in a 2023 Swiss National Bank pilot project for issuing digital bonds with central bank digital currency.

ZKB’s initiative comes amid a broader expansion of crypto services among Swiss financial institutions. In late June, crypto-friendly bank Sygnum, based in Zurich, extended its business-to-business services to over 20 entities, including PostFinance, ZugerKB, and LuzernerKB, allowing a significant portion of the Swiss population to access crypto markets.

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Công nghệ

DBS unveils blockchain solution for streamlined government grant disbursement

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Singaporean banking giant DBS has introduced a blockchain-powered solution that uses smart contracts to streamline the disbursement of government grants.

According to a local media report, DBS completed the pilot in collaboration with Enterprise Singapore and the Singapore Fintech Association.

As a part of the pilot, 27 local fintech companies received grants from the SFA using a permissioned blockchain developed by DBS. Perermissioned blockchains are partially decentralized and restrict who can participate in the network. Unlike public blockchains, permissioned blockchains require participants to be pre-approved.

DBS’s permissioned blockchain allows the ESG and the SFA to set the conditions for grant programs and ensures that only approved beneficiaries receive the grants.

Smart contracts verify these pre-determined conditions, and grants are disbursed automatically when the conditions are met. As such, DBS adds that the solution reduces the need for manual intervention and allows beneficiaries to receive cash payouts much faster.

DBS stated that the pilot was conducted to showcase how these programmable grants can improve the transparency and efficiency of grant disbursements. 

Han Kwee Juan, country head of DBS Singapore, expects the new solution to be “extended to more use cases, including milestone-based project payments, consumer rewards, and more.”

DBS also plans to explore more applications for the solution with more government agencies as part of Project Orchid. The Monetary Authority of Singapore launched the multi-year digital currency initiative last year to explore various use cases for digital money.

DBS pioneering blockchain innovation

Among other initiatives, DBS recently launched a blockchain-based pilot project in partnership with Ant International to enhance cross-border treasury and liquidity management. The DBS Treasury Tokens project also leverages DBS’s permissioned blockchain to support multi-currency treasury operations for Ant International, the company behind the Alipay+ mobile payment service.

Alongside its tokenization efforts, DBS is also progressing in the cryptocurrency sector. In July, the bank became a custodial partner for Paxos, a stablecoin issuer based in New York. In February, DBS expanded its services to offer crypto solutions to clients in Hong Kong.

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Công nghệ

Citigroup’s veteran departs to pursue career in crypto: report

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Citigroup’s head of digital assets Shobhit Maini is leaving the bank to pursue an “entrepreneurial opportunity” in the crypto space.

Shobhit Maini, global head of digital assets in Citigroup’s market unit, has reportedly left the bank to focus on a career in the crypto industry, Reuters reports, citing an internal memo.

Maini, who joined the international banking giant, joined Citigroup in 2010, and led the bank’s digital assets efforts since 2021. Per Lee Smallwood, head of markets innovation and investments at the bank, Maini will “pursue an entrepreneurial opportunity in the digital asset space,” though the exact firm was not revealed.

Following Maini’s departure, Deepak Mehra, currently the international lead for Citi markets’ strategic investments, will assume leadership of the digital assets division within the markets unit, according to the memo.

Citigroup explores blockchain and tokenization

While Citigroup has not engaged directly in the cryptocurrency market, the bank has focused on exploring tokenization solutions and blockchain technology. For example, in 2023, Citigroup became the first digital custodian participant in the BondbloX Bond Exchange, a blockchain-based bond trading platform. The bank stored the underlying bonds issued and traded on the exchange as fractionalized assets.

Earlier, Citigroup collaborated with Wellington Management and WisdomTree to demonstrate the feasibility of issuing and managing tokenized private equity funds within a regulated framework, ensuring these digital assets are compatible with the bank’s existing systems.

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Web3 challenges lead Hong Kong official to push for virtual bank expansion

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Hong Kong legislator Johnny Ng has called for an expansion of virtual bank services to address hurdles faced by web3 startups in the region.

Hong Kong should embrace a more crypto-friendly approach by expanding virtual banking services as web3 startups face ongoing hurdles in accessing financial services, Johnny Ng, a member of the Legislative Council of Hong Kong, said in an X post on Aug. 9.

Ng emphasized the need for virtual banks to diversify their services and proposed the establishment of dedicated crypto-focused banks, referring to a report by the Hong Kong Monetary Authority that highlighted ongoing difficulties web3 companies encounter when attempting to open bank accounts in the region. “The survey showed that web3 firms had difficulties in opening accounts, resulting in inefficiency in developing business locally,” Ng said.

Per Ng’s proposals, virtual banks should focus more on the needs of web3 companies and accelerate the development of Hong Kong’s digital ecosystem, stating that “virtual asset policies have become the focus of global government discussions.”

Web3 firms struggle with banking challenges in Hong Kong

Web3 startups in Hong Kong have encountered challenges with opening bank accounts due to stringent regulatory requirements and the conservative approach of traditional financial institutions toward the crypto space.

According to the HKMA’s report, out of over 120 web3 firms that established their presence in Hong Kong in 2022, around 95% faced difficulties opening accounts with virtual banks. Moreover, 70% of these companies were required to have shareholders or directors visit Hong Kong multiple times, while 60% were asked to maintain fixed deposits. Additionally, 54% of the firms took six months or more to open an account, with nearly 20% taking between two to five months, and 3% were refused altogether.

Ng urges Hong Kong’s authorities to advance their efforts focused on web3 adoption, saying that if the city wants to become the web3 center, it should “promote the development of the entire chain and ecosystem as soon as possible.”

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Tether CEO warns MiCA stablecoin rules could pose ‘systemic risks’ to EU banks

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Tether chief executive Paolo Ardoino is alarmed that Europe’s MiCA regulations on stablecoins, due to excessive cash reserves requirements, could pose systemic risks to banks.

Paolo Ardoino, the chief executive of the company behind the largest stablecoin by market capitalization, Tether (USDT), appears to be concerned about the new European crypto legislation, known as MiCA (Markets in Crypto-Assets), saying it could create “systemic risks” for banks.

In an interview with Forbes, Ardoino criticized MiCA’s requirement for stablecoin issuers to hold 60% of their reserves in non-insured cash deposits, drawing parallels to Circle’s incident with Silicon Valley Bank in 2023, when over $3 billion of its $40 billion of USD Coin (USDC) reserves were stuck at the collapsed lender.

“I don’t want to endanger those 300 million people holding USDT because I have to keep the 60% in uninsured cash deposits in a European bank,” Paolo Ardoino said in the interview.

“Everyone will blame the stablecoins”

The Tether CEO argued that MiCA’s high reserve requirement could exacerbate risks rather than mitigate them, noting that the regulation also creates “restrictions on how much you can trade or make.”

“People asked me if I was concerned about that. I’m not. That is a restriction to protect or create a sandbox, which is fine. That restriction improves or reduces the risk. Conversely, a 60% cash deposit requirement increases the risk,” he explained.

Ardoino also addressed the potential pitfalls of the regulation, suggesting that it could lead to a situation where European banks would face a “systemic risk” due to the liquidity pressures imposed by large-scale redemptions.

The Tether CEO illustrated this with a scenario where a $10 billion stablecoin must keep $6 billion in cash deposits, allowing banks to lend out 90% of that amount. This would leave only $600 million on their balance sheets. If a $2 billion redemption request occurs, similar to the pressure Tether faced in 2022, Ardoino noted, the bank would struggle with only $600 million in reserves, potentially leading to bankruptcy.

“Everyone will blame the stablecoins, but even more so, in this way, you can prove, and it’s easy to understand that that type of requirement of MICA will create a systemic risk for European banks,” the Tether CEO said.

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