Basel Committee final disclosure framework for banks’ cryptoasset exposures

The Basel Committee on Banking Supervision published its final disclosure framework for banks’ crypto-asset exposures and targeted amendments to its crypto-asset standard published in December 2022. The disclosure framework includes a set of standardized tables and templates covering banks’ crypto-asset exposures to enhance information availability and support market discipline. The targeted amendments include clarified criteria for stablecoins to receive a preferential regulatory treatment. [Read more at the Bank for International Settlements]

[Ledger Insights provides a summary of the key points regarding the criteria for stablecoin preferential treatment here.]

HKMA proposes rules for ‘fiat-referenced’ stablecoins (Decrypt)

The Hong Kong Monetary Authority (HKMA) is looking to roll out a comprehensive regulatory framework for fiat-referenced stablecoin (FRS) issuers. This comes alongside a proposal for legislation. The new regime would require foreign FRS issuers to establish a physical presence in Hong Kong, require that issuers custody reserves at Hong Kong banks, and prohibit issuers from paying interest to holders. [Read more at the HKMA]

State Street planning tokenized deposits and stablecoin (Ledger Insights)

State Street is reportedly exploring creating its own stablecoin and deposit token. The bank is already an investor in Fnality, the interbank distributed ledger technology (DLT) synthetic wholesale central bank digital currency (CBDC) payment solution backed by 20 institutions. [Read more at Bloomberg]

Oxbridge Re raises $2.88m for EpsilonCat Re tokenized reinsurance sidecar securities (Artemis.bm)

Oxbridge Re Ltd., the Cayman Islands based reinsurance company, through its SurancePlus digital securities subsidiary, completed a private placement of 287,705 Participation Shares represented by the digital tokens, EpsilonCat Re, under a 3-year Participation Share Investment Contract to raise roughly $2.88 million. [Read more at Artemis.bm]

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