Kiffmeister’s #Fintech Daily Digest (20250626)

June 26, 2025June 26, 2025 ~ kiffmeister

Bank of Russia Sets Digital Ruble Deadline for Mass Adoption (Bitcoin.com)

The Bank of Russia submitted a phased rollout plan to the State Duma requiring banks and merchants to comply with digital ruble regulations starting September 1, 2026. More specifically, merchants that are clients of the largest banks and whose revenue for the previous year exceeds 120 million rubles will have to enable payments for goods and services in digital rubles. Universal license banks and their merchant clients with annual turnover above 30 million rubles must integrate digital ruble systems by September 1, 2027. All remaining banks and sellers—excluding those with revenue below 5 million rubles—must follow suit by September 1, 2028. The digital ruble will operate via a universal QR code system powered by the National Payment Card System. [Read more at Tass]

DLT Pilot Regime: ESMA Proposes Flexible Thresholds, Permanent Regime (Ledger Insights)

The European Securities and Markets Authority (ESMA) published a report on its Distributed Ledger Technology (DLT) Pilot Regime, providing an overview of the EU market for authorized DLT market infrastructures and recommendations on how to expand Regime participation. Despite an initially limited uptake, the Regime is now seeing growing interest from potential applicants. The regulator suggests removing the current six year limit that requires platforms to eventually wind down their operations. The authority also wants to revisit restrictive thresholds, including the €6 billion platform issuance cap and €500 million market capitalization limit for equity issuers. The scope of permitted instruments could also expand beyond the current vanilla equity, bonds and funds. For settlement, ESMA prefers maintaining central bank money as the primary method, with stricter thresholds applied when platforms use stablecoins or electronic money tokens due to perceived higher risks. [Read more at ESMA]

Bank of Korea Deputy Governor Says Desirable to Introduce Stablecoins Gradually (Reuters)

Bank of Korea Senior Deputy Governor Ryoo Sang-dai said it was desirable to introduce won-denominated stablecoins at a gradual pace, first with commercial banks and then gradually to the nonbanks with the experience. Ryoo said introducing stablecoins could have a significant impact on monetary policy and the transaction settlement system, as he echoed earlier concerns about capital flows raised by Governor Rhee Chang-yong and noted the need for a safety net to prevent financial market disorder and ensure user protection. [Read more at Reuters]

Value of Interoperability in Growing Retail Digital Payments (IMF)

The IMF published a paper that examines the benefits of interoperability in retail digital payment systems, focusing on India’s Unified Payments Interface (UPI). It highlights how interoperability allows users to transact seamlessly across different apps, enhancing user choice by enabling them to select preferred apps based on trust, features, or reliability. This freedom fosters competition among providers, incentivizing innovation and quality improvements. The paper presents evidence consistent with this framework using granular UPI payments data. It shows that interoperability has indeed led to higher adoption of digital payments, reduced reliance on cash, and prevented market dominance by a single provider. The study also underscores the importance of regulatory vigilance to maintain a competitive and open system. [Read more at the IMF]

What Makes Good Money? Rethinking Stablecoins in Light of BIS Criticism (Michel Rauchs)

Michel Rauchs criticized the Bank for International Settlements (BIS) recent broad condemnation of stablecoins, arguing that the BIS conflates different issues such as functionality, elasticity, and integrity. Rauchs defends stablecoins as effective forms of money in certain contexts, especially in the Global South and crypto-native markets, citing their growing role in cross-border remittances and decentralized finance. He challenges the BIS’s framing of elasticity by contrasting bank credit creation with stablecoin-backed liquidity, and he questions whether “integrity” should be used as a criterion for monetary quality. The discussion in the comments, involving experts like Aleksi Grym, Rhys Bidder, Patrick McConnell, and Colin Shields, expands on these themes—debating BIS methodology, the systemic risks of stablecoins, and the evolving definition of money. While most agree on the risks and limitations of stablecoins, several commenters argue that BIS analysis is too narrow or outdated and that the current monetary system’s own shortcomings must be acknowledged. [Read more on LinkedIn]

Upcoming Speaking Engagements:

The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]

And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.

Kiffmeister’s #Fintech Daily Digest (20250515)

May 15, 2025May 18, 2025 ~ kiffmeister

Project Pine: Central Bank Open Market Operations with Smart Contracts (BIS)

The Federal Reserve Bank of New York and the Bank for International Settlements (BIS) published a joint research study that explored if and how central banks could continue to implement monetary policy operations in hypothetical tokenized wholesale financial markets. Project Pine found that central banks could customize and deploy policy implementation tools using programmable smart contracts in a potential future state where commercial banks and other private sector financial institutions have widely adopted tokenization for wholesale payments and securities settlement. The project generated the prototype of a generic monetary policy implementation tokenized toolkit for potential further research and development by central banks across jurisdictions and currencies. The prototype was designed to be technically modifiable for different central banks’ monetary policy frameworks and calibrated to conduct standard or emergency market operations. [Read more at the BIS]

Project Pine is not intended to advance any specific policy outcomes, nor does it represent any work by the Federal Reserve to establish, issue or promote any central bank digital currency within the United States or abroad.

Towards Verifiability of Total Value Locked in Decentralized Finance (BIS)

The Bank for International Settlements (BIS) published a paper that examines how total value locked (TVL) in decentralized finance (DeFi) is computed, identifies key challenges that hinder its verifiability, and proposes solutions to improve its computation. Its findings indicate limits to verifiability and transparency, and introduces a “verifiable Total Value Locked” (vTVL) metric measuring the TVL that can be verified relying solely on on-chain data and standard balance queries. A case study on 400 protocols shows that its estimations align with published figures for 46.5% of protocols, pointing to the potential for further TVL standardization. [Read more at the BIS]

Scaling DLT Capital Markets – Enabling Central Bank Money Settlement and Collateral Eligibility for DLT-based Securities (AFME)

The Association for Financial Markets in Europe (AFME) published a paper outlining two critical steps needed to scale distributed ledger technology (DLT) in capital markets in the European Union. First is the urgent need for a settlement solution for tokenized assets using central bank money. Secondly, AFME wants to see tokenized securities being considered eligible as collateral when banks borrow money from their central bank. [Read more at the AFME]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20250509)

May 9, 2025May 9, 2025 ~ kiffmeister

SEC, Ripple ink $50M settlement agreement (CoinDesk)

Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have officially reached a deal that, if approved by a judge, will bring their years-long legal battle to a close. According to a settlement agreement filed in New York on Thursday, both parties have agreed to a $50 million penalty — a portion of the $125 million fine initially imposed last year by Judge Analisa Torres of the Southern District of New York (SDNY), and a tiny fraction of the massive $2 billion fine initially requested by the SEC. [Read more at the SEC]

Stripe accelerates the utility stablecoins (Stripe)

Stripe launched Stablecoin Financial Accounts, new money management capabilities powered by stablecoins, which will be accessible to businesses in 101 countries. This comes three months after Stripe completed its acquisition of stablecoin platform Bridge. With these new accounts, businesses will be able to hold a balance in stablecoins, receive funds on both crypto and fiat rails (like ACH and SEPA), and send stablecoins almost anywhere in the world. These accounts will allow entrepreneurs in countries with volatile currencies to hedge against inflation and more easily access the global economy. Stripe will start by supporting two dollar-denominated stablecoins—USDC and Bridge’s USDB—and plans to add others over time. [Read more at Stripe]

US SEC considers tokenization-related conditional exemptions (SEC)

The U.S. Securities and Exchange Commission (SEC) is considering a potential exemptive order that would allow firms to use distributed ledger technology (DLT) to issue, trade, and settle securities without having to comply with certain registration requirements that may be ill-suited for this technology. This potential conditional exemption from certain SEC registration requirements and associated rules would allow firms to use innovative trading systems for eligible tokenized securities. The contemplated exemption would be conditional. Exempted entities would comply with market integrity conditions for the prevention of fraud and manipulation. This sketch of a potential exemption is a work-in-progress. There would be other conditions, but the goal is to formulate a commercially feasible approach that protects investors, including by ensuring that they have the benefit of cutting-edge technologies for trading, clearing, and settling securities. [Read more at the SEC]

Empirical analysis of cross-border Bitcoin, Ether and stablecoin flows (BIS)

The BIS published the results of an empirical investigation of trends and drivers of cross-border flows of Bitcoin (BTC), Ethereum (ETH), Tether (USDT) and USD Coin (USDC) between 184 countries from 2017 to 2024. These flows are substantial, peaking at around $2.6 trillion in 2021, with the two stablecoins (USDT and USDC) accounting for close to half the volume. The bilateral data allow for the estimation the drivers of these flows in a gravity framework, and how they differ across different types of crypto-assets. The findings highlight speculative motives and global funding conditions as key drivers of native crypto-asset flows. Transactional motives play a significant role in cross-border flows for stablecoins and low-value BTC transactions, where a strong association with higher costs of traditional remittances is found. [Read more at the BIS]

Coinbase acquires crypto derivatives exchange Deribit (Ledger Insights)

Coinbase has agreed to acquire Deribit, the largest crypto options exchange for $2.9 billion, including $700 million in cash with the balance in stock. Coinbase already has a derivatives subsidiary, which is particularly active in perpetual futures. The transaction is expected to close by the end of the year, subject to regulatory approvals. [Read more at Ledger Insights]

An investment perspective on tokenization: Parts 1 and 2 (CFA Institute)

The CFA Institute has published two reports on tokenization. The first one discusses distributed ledger technology, the various models of tokenization, and the processes involved. It also considers the benefits and limitations of tokenization in areas like clearing and settlement, transparency and compliance, and market access. The report further includes case studies from interviews with firms and digital finance professionals on the impact of tokenizing investment products. The value proposition of tokenization revolves around improvements in clearing and settlement, transparency and compliance, and fractionalization and market access. Limitations and challenges include cybersecurity risks, regulatory uncertainties, a still-fledgling market infrastructure, and the issue of whether it makes sense to grant easier access to private market investments for retail investors. [Read more at the CFA Institute]

The second part focuses on the legal and regulatory developments considered necessary to support the tokenization industry. It also analyzes international and supranational standards and proposals by non-governmental bodies and provides a comparative cross-jurisdictional analysis of regulatory sandbox initiatives. The key takeaways are that the growth of digital assets and tokenization requires legal and regulatory frameworks to address issues related to property rights, cross-border recognition and compliance, enforcement rights, and jurisdictional remit, and that global regulatory cooperation and measures to safeguard stakeholders are a priority for regulators and policymakers. [Read more at the CFA Institute]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20250424)

April 24, 2025April 24, 2025 ~ kiffmeister

Nigeria, China to sign digital currency deal to reduce dollar reliance (Vanguard)

Nigeria will reportedly sign a deal to enable a direct conversion of naira to digital renminbi (RMB) according to Nigeria-China Strategic Partnership (NCSP) Director-General Joseph Tegbehas. Speaking at a conference in Lagos, he said the agreement could reduce Nigeria’s dependence on the United States dollar. The NCSP jointly established ivy the Chinese and Nigerian governments in November 2024 under the leadership of President Bola Ahmed Tinubu following agreements reached with President Xi Jinping at FOCAC 2024, aiming to deepen economic, trade, and investment relations between the two nations. It serves facilitate high-impact partnerships that align with Nigeria’s development priorities and China’s Belt and Road Initiative. But there has not yet been an announcement on the NCSP website regarding the RMB deal. [Read more at Vanguard]

Bank of Korea “Project Hangang River” is a deposit token pilot (Business Korea)

At a briefing held at the Bank of Korea on April 21, 2025, Deputy Governor Lee Jong-ryul reportedly pointed out that the “Project Hangang River” three-month pilot that started on April 1, 2025, is more about experimenting with “deposit tokens,” a stablecoin issued by domestic commercial banks, than the central bank digital currency (CBDC) issued by the Bank of Korea. As of April 20, 51,766 electronic wallets capable of using deposit tokens had been opened, and a cumulative total of 29,251 transactions had occurred from April 1 to April 20. [Business Korea]

Project Meridian FX: exploring synchronized settlement in FX (BIS)

The Bank for International Settlements (BIS) published the results of the Project Meridian FX experiment that demonstrated the atomic settlement of FX transactions between different wholesale payment infrastructures across jurisdictions, and between an real-time gross settlement (RTGS) system and a distributed ledger technology (DLT) platform. Using an emulated UK real-time gross settlement (RTGS) system, the project connected to three experimental interoperability solutions from the Eurosystem: DL3S (developed by the Bank of France), TIPS Hash-Link (developed by the Bank of Italy) and the Trigger Solution (developed by the Deutsche Bundesbank). In each case, payment-versus-payment (PvP) FX settlements were successfully orchestrated. [Read more at the BIS]

Kiffmeister’s #Fintech Daily Digest (20250412)

April 12, 2025April 12, 2025 ~ kiffmeister

Central Bank of Colombia wholesale CBDC proof-of-concept (BIS)

Colombia’s Banco de la República (BanRep) is exploring the use of a wholesale central bank digital currency (CBDC) in a tokenized financial market based on distributed ledger technology (DLT). As part of this agenda, BanRep, in collaboration with the Ministry of Information Technology and Communications, Ripple and Peersyst, is conducting a proof-of-concept (POS) experiment to issue wholesale CBDC and tokenized securities. This involves building a scalable blockchain prototype in a test environment with simulated participants. The experiment evaluates efficiencies in delivery versus s payment (DVP) for primary issuance and in the clearing and settlement of transactions in the secondary market, as well as direct CBDC transfers between the wallets of financial entities on the blockchain. [Read more at the BIS]

China links CBDC payments to 10 ASEAN, 6 Middle eastern countries (Proshare)

According to Nigerian news outlet Proshare, the People’s Bank of China (PBOC) has announced that its digital RMB cross-border settlement system will be fully connected to the ten ASEAN nations and six Middle Eastern countries. Needless to say, the crypto press took the ball and ran with it, some even saying that the full-scale launch had taken place on exactly March 17, 2025. However, even though it is prospectively plausible, it is likely fake news based on cobbling together recent disparate true stories, like those around the ongoing mBridge proof-of-concept project. [See the original Proshare story here, Ledger Insight’s analysis here, and Rosa Giovanna Barresi’s here]

Kiffmeister’s #Fintech Daily Digest (20250318)

March 18, 2025March 18, 2025 ~ kiffmeister

Bank of Korea to Begin CBDC Pilot in April (BusinessKorea)

The Bank of Korea (BOK) will reportedly launch its wholesale central bank digital currency (CBDC) pilot next month. Participants will be able to convert their bank deposits into tokenized deposits and use them for payments at affiliated merchants. The purpose of the distributed ledger technology (DLT) based wholesale CBDC is to settle the tokenized deposit transactions across the seven participating banks. Currently, interbank transfers are settled via transfers across banks’ BOK reserve accounts. To recruit approximately 100,000 pilot participants for the experiment, the BOK reportedly plans to issue a public announcement by the end of this month. [Read more at BusinessKorea]

UK government launches procurement for digital gilts (Ledger Insights)

The U.K Chancellor of the Exchequer announced details of the launch of the procurement process for the Digital Gilt Instrument (DIGIT) issuance pilot. HM Treasury has published additional information, engagement questions and has issued a Preliminary Market Engagement notice through its contract finder service. The short-dated gilts will be issued outside the government’s conventional debt issuance program, and will not be issued by the Debt Management Office. Given the gilt will be hosted on a platform that’s part of the Digital Securities Sandbox, the platform will first need approval from the Bank of England and Financial Conduct Authority that are jointly operating the Sandbox. [Read more at the U.K. government website]

Upcoming Speaking Engagements:

The Crypto Assets Conference (Frankfurt, March 26) will delve into the advancements in digital assets, tokenization, crypto assets, web3, and more, through insightful talks, interactive debates, and presentations by industry experts, founders, investors, and representatives from public institutions. [Register here and get a 10% discount]
The Digital Euro Conference 2025 (Frankfurt, March 27) will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Register here]

Kiffmeister’s #Fintech Daily Digest (20250306)

March 6, 2025March 6, 2025 ~ kiffmeister

Student Safe: the Magyar Nemzeti Bank’s retail CBDC pilot project (MNB)

Magyar Nemzeti Bank (MNB) published a white paper on its Student Safe central bank digital currency (CBDC) pilot project, which was launched in May 2023 and phased out in February 2025. The aim was to create a CBDC environment that is not only secure and regulated, but also flexible and user-friendly. The Student Safe offered free of charge and secure digital payment solutions to support the financial inclusion of 8-14 year olds. It provided users with the opportunity to learn the theory and practice of digital finance basics through a combination of quizzes and mobile banking functions. Going forward, the MNB will examine possible motivations and emerging use cases that could be relevant to the Student Safe user base or to another group of consumers. [Read more at the MNB]

Hungary’s central bank organizes DLT for mortgage insurance (Ledger Insights)

The MNB, working with eight Hungarian banks and eleven insurers, developed a distributed ledger technology (DLT) based home insurance scheme, to coordinate data sharing about mortgage insurance policies. The paperless and transparent data transfer will reduce administrative work and reconciliations. Data sharing will be General Data Protection Regulation (GDPR) compliant, so the homeowners will have to provide consent, and only the insurer and the bank will have the right to see the data, and not the central bank. [Read more at the MNB]

Upcoming Speaking Engagements:

The Crypto Assets Conference (Frankfurt, March 26) will delve into the advancements in digital assets, tokenization, crypto assets, web3, and more, through insightful talks, interactive debates, and presentations by industry experts, founders, investors, and representatives from public institutions. [Register here and get a 10% discount]
The Digital Euro Conference 2025 (Frankfurt, March 27) will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Register here]

Kiffmeister’s #Fintech Daily Digest (20250123)

January 23, 2025January 23, 2025 ~ kiffmeister

Taiwan FSC proposes law allowing banks to issue stablecoin (Crypto.news)

The Taiwan Financial Supervisory Commission reportedly wants to introduce a draft law that would allow banks to issue their own stablecoins that will be jointly managed by the Taiwan central bank. “Chairman of the Taiwan FSC, Peng Jinlong, stated that stablecoins will be used as a bridge that connects the gap between fiat currencies and cryptocurrencies, making it easier for investors to access the crypto trading market. In the case of Taiwan, stablecoins issued by local banks will be pegged to the new Taiwan dollar instead of the U.S. dollar.” [Read more at Money.udn.com]

Eurex gets BaFin approval for DLT-based margin collateral via HQLAᵡ (Ledger Insights)

Eurex Clearing has received non-objection letter from the German Federal Financial Supervisory Authority (BaFin) for distributed ledger technology (DLT) supported collateral mobilization for its clients. The initiative is a collaboration with HQLAᵡ and Clearstream, with J.P. Morgan planning to participate as the pilot clearing member. The objective is to ensure that securities collateral can be accessed and utilized instantly to fulfil central counterparty (CCP) margin requirements, regardless of its physical location. [Read more at HQLAᵡ]

Privacy-enhancing technologies for digital payments: mapping the landscape (BIS)

The Bank for International Settlements (BIS) published a paper on how technology can enhance privacy in digital payment systems. It classifies privacy-enhancing designs along the dimensions of privacy versus auditability, and soft institution- versus hard technology-based solutions. It maps existing technologies into this taxonomy and assesses them. Sophisticated techniques allow having both hard privacy and limited transparency by employing hard-coded rules that dictate which data remains inaccessible. On balance, there is promise in novel concepts like zero-knowledge-proofs, but current technologies suffer from security and computational capacity limitations in. [Read more at the BIS]

Here a coin, there a coin, everywhere a stablecoin (Atlanta Fed)

The Federal Reserve Bank of Atlanta published an article on the growing use of stablecoins. It points to retailers like Overstock, Chipotle, Whole Foods, and GameStop now accepting them, Stripe enabling merchants to accept USD Coin (USDC). Regal Cinemas offering a 10% discount on tickets and concessions for USDC payments, and Travala letting users book travel services with USDC or USDT. Benefits to merchants include reduced transaction fees, immediate settlement, and attracting crypto-savvy customers. However, the article points to concerns over the stability of the assets backing them, regulatory uncertainty, and security vulnerabilities like cyberattacks, and stablecoins used in decentralized finance platforms facing risks such as smart contract failures and liquidity issues. [Read more at the Atlanta Fed]

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Upcoming Speaking Engagements:

The Central Bank Payments Conference (Paris, February 17–19) will explore the latest issues and developments confronting central banks and their evolving role as operators, overseers, and catalysts within the payments landscape. The focus will be on cross-border payments, CBDC and tokenization, open finance, instant payments, and financial inclusion, among other topics. When you register get 15% off by using the Kiffmeister15 code. [r egister here]
The Global Payments Summit (Paris, February 19–21), the second half of Currency Research Payments Week, will explore emerging payments trends and innovations, positioning the ecosystem’s commercial players — banks, PSPs, solution providers — at the center of the discussions. When you register get 15% off by using the Kiffmeister15 code. [register here]
The Digital Euro Conference 2025 (Frankfurt, March 27) will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [register here]

Kiffmeister’s #Fintech Daily Digest (20250109)

January 9, 2025January 9, 2025 ~ kiffmeister

Privacy-enhancing technologies for CBDC solutions (BOC)

The Bank of Canada (BOC) published a paper that explores the use of privacy-enhancing technologies (PETs) in the design of central bank digital currency (CBDC) systems, potentially paving the way for solutions that better safeguard end-user privacy and meet rigorous data protection standards. PETs can offer robust protection for data throughout their lifecycle, whether stored, in transit or during processing, and ensure privacy is maintained even when data are extensively shared or analyzed. However, they can introduce performance overheads and add complexity to systems, and their effectiveness and applicability are currently limited due to their early stage of development. This paper provides a comprehensive overview of how PETs can transform privacy design in financial systems and the implications of their broader adoption. [Read more at the BOC]

Hong Kong launches DLT incubator for banks (Ledger Insights)

The Hong Kong Monetary Authority (HKMA) unveiled a “Supervisory Incubator for Distributed Ledger Technology”, with tokenized deposits as a major focus. At the individual bank level, the Incubator will offer a one-stop supervisory platform that enables banks to reaffirm the adequacy of their risk management controls prior to the full launch of a DLT-based initiative. By leveraging this platform, banks will have access to a dedicated team from the HKMA for obtaining supervisory feedback and may opt to conduct live trials to validate and refine specific aspects of their risk management implementation under a hands-on and iterative approach, as needed. [Read more at the HKMA]

Sponsored Content:

Upcoming Speaking Engagements:

The Central Bank Payments Conference (Paris, February 17–19) will explore the latest issues and developments confronting central banks and their evolving role as operators, overseers, and catalysts within the payments landscape. The focus will be on cross-border payments, CBDC and tokenization, open finance, instant payments, and financial inclusion, among other topics. [register here]
The Global Payments Summit (Paris, February 19–21), the second half of Currency Research Payments Week, will explore emerging payments trends and innovations, positioning the ecosystem’s commercial players — banks, PSPs, solution providers — at the center of the discussions. [register here]
The Digital Euro Conference 2025 (Frankfurt, March 27) will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [register here]

Kiffmeister’s #Fintech Daily Digest (20241213)

December 13, 2024December 13, 2024 ~ kiffmeister

Bank Indonesia completes digital rupiah PoC (BI)

Bank Indonesia (BI) completed its Project Garuda proof of concept (PoC) for a distributed ledger technology (DLT) based digital rupiah wholesale cash ledger. The testing confirmed that the solution can meet the business and technical needs requirements (transaction security, interoperability with existing payment systems and financial infrastructure). Two DLT-based platforms were tested; Corda (R3) and Hyperledger Besu (Kaleido). Both were able to meet all testing scenarios and address all key questions. Project Garuda will proceed with a broader exploration of securities ledger, including exploring liquidity management and privacy technology. [Read more at BI]

Macau pataca prototype system development completed (AMCM)

The Monetary Authority of Macau (AMCM) has completed the development of a prototype digital Macau pataca (e-MOP) which will soon undergo sandbox and public testing. There is also a chance it will be linked to China’s e-CNY and Hong Kong’s e-HKD in the future. The People’s Bank of China (PBOC) provided technical support, and the Hong Kong Monetary Authority (HKMA) is responsible for supervising and managing e-MOP issuance, cancellation and circulation. The AMCM will set up self-service money exchangers to allow holders to accept e-MOP or other foreign currencies for cash reloading by exchanging money. [Read the e-MOP white paper at the AMCM]

AXA IM in two ECB wholesale CBDC trials (Ledger Insights)

AXA Investment Managers (AXA IM) executed two transactions using the Banque de France’s pilot distributed ledger technology (DLT) based wholesale central bank digital currency (CBDC), as part of the Eurosystem wholesale DLT settlement trials. The first was a €3 million investment by AXA IM, on behalf of AXA France, into a digital sovereign bond issued by the Republic of Slovenia. The transaction was executed on BNP Paribas’ “Neobonds” tokenization platform with T+1 settlement on T+1 using the Banque de France’s DL3S platform. The second experiment executed a fund share subscription of €1 million from Generali into AXA Court Terme with instant settlement process using digital CeBM via the IZNES blockchain platform. [Read more at AXA IM]

SocGen completes repo transaction on public blockchain with the Banque de France (SocGen)

Societe Generale (SocGen) completed a collateralized market transaction fully executed on blockchain through its SG-FORGE subsidiary. This is the first sale and repurchase agreement (repo) transaction in digital securities with a Eurosystem central bank. SocGen deposited as collateral with the Banque de France some bonds issued in 2020 on the public Ethereum blockchain in exchange for pilot central bank digital currency (CBDC) issued by the Banque de France on its DL3S blockchain. [Read more at SocGen]

HQLAᵡ and market participants collaborate on collateral mobility initiative (DerivSource)
HQLAᵡ successfully concluded a feasibility initiative to address pain points in triparty collateral mobility. It uses its platform to transfer securities collateral to – or between – multiple triparty agents without triggering cross-custodian settlements. The HQLAᵡ platform uses distributed ledger technology (DLT) to validate the ownership of the securities at any given point in time. [Read more at DerivSource]

EBA assesses potential benefits and challenges of tokenized deposits (EBA)

The European Banking Authority (EBA) published a report to facilitate awareness of tokenized deposits, as well as assess their potential benefits and challenges. The report also aims to promote convergence in the classification of tokenized deposits in contrast with electronic money tokens (EMTs) issued by credit institutions under the Markets in Crypto-Assets Regulation (MiCAR). [Read more at the EBA]

ESAs provide guidelines to facilitate crypto-asset classification consistency (EBA)

Three European Supervisory Authorities (ESAs) published joint guidelines intended to facilitate consistency in the regulatory classification of crypto-assets under MiCAR. The guidelines include a standardized test to promote a common approach to classification as well as templates market participants should use when communicating to supervisors the regulatory classification of crypto-assets. [Read more at the EBA]

Recommendations related to cross-border payment data flows and regulation (FSB)

The Financial Stability Board (FSB) published recommendations to promote greater alignment in data frameworks related to cross-border payments and consistency in the regulation and supervision of bank and non-bank payment service providers. These recommendations advance key actions from the G20 Roadmap to address legal, supervisory, and regulatory issues in cross-border payments. [Read more at the FSB]

Exploring wholesale central bank digital currencies (CCAF)

The Cambridge Centre for Alternative Finance (CCAF) published a report that reviews the case for a wholesale CBDC, the various approaches in how it can be delivered, and an assessment of the pilots and experiments undertaken by the industry and central banks. It finds that buy- and sell-side firms are progressing with tokenization initiatives, driving a need for digital money for the cash leg. which may increasingly be delivered through tokenized bank deposits or stablecoins. Meanwhile, central banks are raising concerns on the risks of using such private settlement assets for settlement, facilitating experiments demonstrating how central bank money can be used instead, but with no clear indication yet on how and when this may be delivered in practice. [Read more at the CCAF]

Digital tool sheds light on stablecoin flows and regulation (CCAF)

Also, the CCAF updated its Cambridge Digital Money Dashboard (CDMD), offering new insights into the geographical flows of stablecoins, as well as regulatory overviews for a wider set of jurisdictions. This new update was made possible through a joint work with Chainalysis, a blockchain data platform specializing in on-chain data analytics for investigations and compliance. [Read more at the CCAF]

ICMA publishes DLT bonds reference guide (ICMA)

The International Capital Market Association (ICMA) published a reference guidance for DLT-based debt securities. The guide highlights considerations for the end-to-end lifecycle of DLT-based debt securities. It is designed for market practitioners as well as a broader audience of market stakeholders. It comprises over 50 practical questions and serves as a reference point across the lifecycle of a DLT-based debt security. [Read more at ICMA]

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Upcoming Speaking Engagements:

Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]