Bruno Schneider’s Post

Clearstream, DekaBank Deutsche Girozentrale and DZ BANK AG successfully issue #tokenisedbonds on #DLT at #ECB trials DLT Bond Issuance: Clearstream, DekaBank, and DZ Bank have successfully issued two tokenised €5-million bonds using #distributedledgertechnology (#DLT). ECB Trials: The #issuances were part of the European Central Bank (#ECB) trials to explore #DLT’s potential for #settling #transactions in #centralbankmoney. D7 Platform: The entire process was conducted on Deutsche Börse’s D7 #DLTPlatform, including #issuance, #distribution, #settlement, and #lifecyclemanagement. Innovative Milestone: This marks the first #institutionalgrade #issuances in #Germany using #DLT with #wholesale #digitalcentralbankmoney, aiming to enhance #safety, #liquidity, and #efficiency in the #securities #market.

Further insights into the HKMA's plans to regulate fiat-referenced stablecoin issuers, which include a broad set of new supervisory powers. With thanks to my colleagues Stephanie Chan, Felicity Wong and Adrian Tang.

✦ TETHER CEO raises concerns about the EU's Markets in Crypto-Assets regulation, highlighting potential SYSTEMIC BANKING RISKS due to new bank reserve requirements for stablecoin issuers ✦ The regulation framework, intended to enhance FINANCIAL STABILITY and CONSUMER PROTECTION, might inadvertently threaten banking infrastructure ✦ The CEO emphasizes a potential conflict between regulatory goals and the PRACTICAL IMPLICATIONS for the digital asset industry #CryptoRegulation #Tether #BankingRisk #EURegulations #Stablecoin

Swiss bank UBS (UBSG.S), opens new tab  said on Thursday it had successfully piloted a blockchain-based payment system it has developed to improve efficiency of cross-border transactions known as UBS Digital Cash. In the pilot, transactions were carried out with multinational clients and banks, including domestic transactions in Switzerland and cross-border payments in U.S. dollars, Swiss francs, euros and Chinese yuan, UBS said in a statement. Andy Kollegger, head UBS Institutional & Multinational Banking, described blockchain-based payment solutions for cross-border payments as a strategic focus for UBS. "UBS Digital Cash going forward aims to enable our clients to make cross-border payments in a much more efficient and transparent way," Kollegger said. The pilot scheme included the transfer of liquidity between various UBS companies. UBS said it plans to expand and develop UBS Digital Cash in further steps. The system should allow firms to manage intraday-liquidity and adjust liquidity buffers on their accounts more easily due to increased visibility of their cash positions, UBS said. According to the bank, UBS Digital Cash uses a private blockchain network to which only permissioned clients have access. Settlement occurs via smart contracts that can automatically execute payments once certain conditions are met. #UBSDigitalCash #swissbank #digitalpayment

UBS | PostFinance | Sygnum Bank | Swiss Banking - Schweizerische Bankiervereinigung - Memorandum of Understanding among Swiss Banks on the design and execution of a proof of concept regarding the joint issuance and transfer of tokenized deposits (“Deposit Token”)   Source: https://lnkd.in/gnKUpeYG #tokenized #deposit #digitalmoney #mou #switzerland #swiss #banking #design #execution #poc #joint #issuance #transfer Highlights: The Swiss Bankers Association (SBA) and its members see a great opportunity in the possibilities offered by the tokenization of deposits based on commonly defined open standards and infrastructure. This joint approach to exploring the further evolution of our current monetary system is deemed vital to continuing to provide efficient, secure and, above all, innovative and internationally competitive financial services. Some common goods and infrastructure, such as blockchain based deposit tokens, can only create the desired customer value if enough financial market actors invest in their development at the same time and based on the same technical standards. The present Memorandum of Understanding (MoU) among the signatory Swiss banks addresses this need for coordination in the context of the broader SBA work on digital currencies. It includes:  the intention to design and execute an initial proof of concept (PoC) consisting of two base use-cases;  the minimum design and content requirements for such an initial PoC;  the key points in terms of time schedule and the procedure for execution. The signatories intend to actively work towards the common goal of this MoU along the key points formulated in this MoU. This intention includes the following aspects:  Design, execute and assess an initial Deposit Token PoC: The signatories intend to enable the preparation, testing and evaluation of an initial Deposit Token setup based on a mutually agreed upon token standard within the timeframe  Contribution to solving cross-institutional issues: The signatories intend to actively contribute to the clarification of cross-institutional issues and to take appropriate account of corresponding findings in bank-internal work  Assess feasibility and potential for financial market in Switzerland: The signatories intend to assess the potential high-level benefits and feasibility (technical, legal, economic, risk, operational) required for a Swiss-wide roll-out with the aim to foster international competitiveness in DLT.  Non-binding evaluation for a Swiss wide approach for rolling out a Swiss Franc Deposit Token: The signatories intend to provide the market participants with a non-binding evaluation that adds value within the Swiss Financial Market for a possible Deposit Token setup and a way forward to materialize this within the financial infrastructure.

A dynamic approach to debate innovation in the fixed income industry at the ICMA - International Capital Market Association #Fintech & #Digitalization forum at London’s iconic Congress Centre: 9 fast-paced roundtables with a 3 minute summary delivered by each roundtable host all expertly facilitated by Armin Peter and Spencer Maclean. Manan Wagishauser and I had the opportunity to represent Eurex to discuss #digital #repo now and in the future. There were insightful, lively, and valuable talking points from all who participated and contributed to the roundtable discussion on how the repo market can evolve in the digital age. Contributors outlined some of the key drivers behind digital solutions that have been introduced into the repo market, driven by the need to eliminate inefficiencies and reduce funding costs. The #tokenization of securities and digital issuance of new securities do alleviate some of the issues related to an inefficient post-trade settlement process. Like all new developments, a solid foundation is required – common data standards such as the #CommonDomainModel as well the recently introduced legal framework in the Digital Assets Annex by ICMA and International Securities Lending Association (ISLA) for inclusion to GMRAs and GMSLAs, all need evolving further to incorporate the nuances across the digital assets ecosystem. Additionally, incorporating DLT solutions for a broader range of assets such as #MoneyMarketFunds could further enhance the securities finance market’s efficiencies. The introduction of DLT solutions has facilitated the use of increased intraday liquidity management practices in some markets where intraday repo is now feasible, however, further attention is needed to ensure that both digital and traditional securities remain trading as a single liquidity pool. The key to unlocking further development of intraday repo is in Digital DVP – how to match digital securities movements against digital payments. This combined with enabling interoperability across multiple operating DLT platforms and systems. The repo market in Europe, in partnership with specialist FinTech companies and leading Central Banks, is successfully proving that digital securities can be combined with the movement of Central Bank Money by utilizing DLT platforms and solutions as well as existing Financial Market Infrastructure’s models and payment systems. This is a key part of the current #ECB European Central Bank trials of new technologies for wholesale Central Bank money settlement that are taking place which include trials and experiments for intraday repo transactions on both a bilateral and a centrally cleared basis. he journey continues to enable a fully effective digitalized Repo market…Hope this summary is useful, please reach out to connect, discuss and contribute to the advancement of Digital Repo – Now and In the Future! #repo #collateralmanagement #DLT #CBDCs #EurexRepo #blockchain #innovation #marketstructure

The Federal Reserve issued a cease and desist order to Evolve Bank and Trust due to unsafe banking practices and inadequate anti-money laundering measures. Evolve Bank faces challenges with regulatory compliance following issues with fintech partnerships, notably with Synapse Financial Technologies. #antimoneylaundering #DesistOrder #EvolveBank #FederalReserve #Issues #measure

The European Banking Authority (EBA) has released a final draft of regulatory technical standards for stablecoin issuers to handle holder complaints. The standards, developed in partnership with the European Securities and Markets Authority (ESMA), require issuers to publish complaint handling procedures and have a standardized process for customers to submit complaints. The EBA received public comments on the draft guidance in July 2023 and made targeted amendments, including new provisions relating to data protection and updates to complaint forms. The final draft will be submitted to the European Commission for endorsement by the end of June 2024 before heading to the European Parliament and the Council for approval. This development is part of the recently-implemented Markets in Crypto-Assets Regulation (#MiCA) in the European Union and reflects a growing trend towards regulating #stablecoins and other cryptocurrencies globally. https://lnkd.in/eJEVqpsZ

Banks are exploring ways to revolutionize cross-border payments and securities settlement with tokenization. The current monetary system involves isolated databases and third-party messaging systems, which can cause friction and delay. Enter Project Agorá, a collaboration between the New York Fed, Bank of England, Bank of France, Bank of Japan, Bank of Korea, Bank of Mexico, and the Swiss National Bank. The vision is a unified ledger system that eliminates inefficiencies such as differing time zones, operating hours, and legal and regulatory requirements. The benefits include reduced settlement times, lower operational risks, and minimized costs associated with traditional securities transactions. Link to press release here: https://lnkd.in/egSZHXYV #Fintech #Tokenization #CrossBorderPayments #NewYorkFed