Kiffmeister’s #Fintech Daily Digest (20250814)

August 14, 2025August 14, 2025 ~ kiffmeister

Industry Working Group Completes On-Chain US Treasury Financing on Canton Network (Canton)

Digital Asset and a consortium of major financial firms executed a fully on-chain U.S. Treasury financing (repo) on the Canton Network, settling atomically and near-instantly via Tradeweb outside traditional market hours using the USDC stablecoin for cash and tokenized Treasuries as collateral, with underlying assets custodied at Depository Trust & Clearing Corporation (DTCC). Participants included Bank of America, Circle, Citadel Securities, Cumberland DRW, Hidden Road, Société Générale, Tradeweb, and Virtu Financial, demonstrating true 24/7 liquidity and eliminating the limitations of off-ledger cash and market-hour restrictions seen in legacy implementations– all of which is critical to creating a real, always-available, interoperable capital markets infrastructure. [Read more at Canton]

2024 Canadian Methods-of-Payment Survey Report (Bank of Canada)

According to the Bank of Canada, in 2024, Canadians’ cash use remained stable at roughly one-fifth of transaction volume and about one-tenth of value, holding its place behind credit and debit at the point of sale; meanwhile, nominal cash holdings ticked up (with more $50/$100 notes on hand), and withdrawals rose across ABMs, branches, and cashback though still below pre‑2017 levels. Most people report good access to cash (ABMs and branches), strong note quality perceptions, and limited appetite to go fully cashless—nearly four in five have no plans to abandon cash, and even many “cashless” consumers still keep some on hand. Cash transactions skew toward lower‑value purchases (average around the mid‑$20s over the diary window), while contactless cards and rising mobile payments continue to capture higher shares of in‑person spending; merchant acceptance of cash remains high, and the overall post‑pandemic leveling suggests cash persists as a meaningful, resilient payment option despite ongoing growth in digital alternatives. [Read more at the Bank of Canada]

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]

I produce a monthly digest of digital fiat currency (DFC) developments exclusively for the official sector (e.g., central banks, ministries of finance and international financial institution (e.g., the BIS, IMF, OECD, World Bank)) plus academics and firms that are active in the DFC space (commercial banks, technology providers, consultants, etc.). (DFCs include central bank digital currency (CBDC), stablecoins and tokenized deposits.) It goes out via email on the first business day of every month, and if you’re interested in being on the mailing list, please email me at john@kiffmeister.com.

Kiffmeister’s #Fintech Daily Digest (20250710)

July 10, 2025July 10, 2025 ~ kiffmeister

Myanmar Central Bank to Introduce Digital Currency (Myanmar Now)

The Central Bank of Myanmar (CBM) reportedly plans to introduce a central bank digital currency to reduce the use of banknotes. The CBM has formed a committee of 13 members, including a deputy governor, to study and analyse the best methods, technologies, and regulatory frameworks to use in ensuring the successful introduction of the CBDC into the economy, as well as assess its potential impacts on payments systems and monetary policy. The committee will also be responsible for overseeing and maintaining the infrastructural foundations, funding, and regulation of the digital currency after it is introduced. [Read more at Myanmar Now]

Pakistan Planning CBDC Pilot (Ledger Insights)

The State Bank of Pakistan is reportedly planning a central bank digital currency (CBDC) pilot. Governor Jameel Ahmad said that the central bank is building up appropriate capacity and hoped to roll out a pilot soon. However, this should be taken with a grain of salt, since the central bank has twice before made false starts to CBDC work, most recently in 2023. [Read more at Ledger Insights]

RBA and DFCRC Project Acacia Update (RBA)

The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) provided an update on Project Acacia. It will explore how different forms of digital money and associated infrastructure could support the development of wholesale tokenized asset markets in Australia. 19 pilot use cases, and 5 proof-of-concept use cases, have been conditionally selected for this next stage of the project to take place over six months. The use cases involve a range of asset classes, including fixed income, private markets, trade receivables and carbon credits. Proposed settlement assets for the use cases include stablecoins, bank deposit tokens, and pilot wholesale central bank digital currency (CBDC), as well as new ways of using banks’ existing exchange settlement accounts at the RBA. Issuance of pilot wholesale CBDC for testing use cases will occur on a range of private and public-permissioned distributed ledger technology (DLT) platforms. The Australian Securities and Investments Commission (ASIC) will provide regulatory relief to participants to support and streamline the pilot. [Read more at the RBA]

Stablecoins are Trending, But What Frictions and Risks are Getting Overlooked? (Atlantic Council)

The Atlantic Council published an article by Ashley Lannquist that discusses the growing popularity of stablecoins, while highlighting the risks and frictions. The article points out regulatory gaps, potential financial instability, and the lack of transparency in reserve backing, which could lead to liquidity crises if many users redeem stablecoins simultaneously. It also examines geopolitical concerns, such as the use of stablecoins to evade sanctions, and operational risks like cybersecurity threats. Also, despite their utility in cross-border payments and decentralized finance (DeFi), stablecoins’ value for everyday payments remains to be seen. [Read more at the Atlantic Council]

Latest Stablecoin Depeg Spotlights Need for Better Attestation (Ledger Insights)

Falcon USD (USDf), a crypto-backed, overcollateralized stablecoin issued by Falcon Finance, a subsidiary of DWF Labs experienced a depegging event, with its price dropping as low as $0.98 and briefly to $0.9432 before recovering to around $0.995. This incident has raised concerns about the transparency and quality of the collateral backing USDf, as well as the potential risk of a broader stablecoin crisis reminiscent of the Terra (LUNA) collapse. Critics and risk consultants have pointed to a lack of clarity regarding the composition and liquidity of USDf’s reserves, and have questioned its inclusion as collateral on DeFi lending platforms. In response to the depegging and growing scrutiny, DWF Labs’ CEO has pledged to provide a more detailed breakdown of the assets backing USDf. [Read more at Ledger Insights]

Why Banks Need Regulatory Clarity on Permissionless Blockchains (Fireblocks)

Fireblocks published an article about the regulatory barriers that prevent banks from effectively utilizing permissionless blockchains, despite their potential benefits. For example, Basel III’s emphasis on knowing all node operators results in a maximum 1250% risk weight for tokenized assets on public blockchains, making them approximately 12 times more expensive to hold than traditional assets. The article contends that these regulatory mismatches discourage banks from adopting infrastructure that could provide trust through decentralization, continuous innovation, and programmable finance capabilities. To address these challenges, the author advocates for more nuanced regulatory approaches that distinguish between different types of risks, focus on how banks actually use blockchain networks rather than the networks’ permission models, and recognize that governance and compliance controls can be embedded at the token or application layer rather than requiring control over the entire network infrastructure. [Read more at Fireblocks]

Upcoming Speaking Engagements:

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 (20250702)

July 3, 2025 ~ kiffmeister

A Macroeconomic Model of Remunerated Central Bank Digital Currency (NBER)

The U.S. National Bureau of Research (NBER) published a paper that develops a calibrated New Keynesian DSGE model featuring monopolistic banks to assess the macroeconomic impact of introducing a remunerated central bank digital currency (CBDC). The analysis shows that households gain from enhanced liquidity services and higher deposit interest rates due to reduced bank market power, while banks experience lower profits and lending volumes. Exploring economies across different interest rate regimes, the authors identify significant welfare improvements from remunerated CBDC adoption, especially in economies with high interest rates where banks have substantial market power in deposit markets. They propose a practical CBDC interest-rate setting rule—setting it as the greater of zero and the policy rate minus one percentage point—which closely approximates the optimal rate found in their model. [Read more at the NBER]

Ripple Follows Circle in Bid for US Banking License (Decrypt)

Ripple has filed an application with the Office of the Comptroller of the Currency (OCC) to obtain a national bank charter, following in the footsteps of Circle’s similar application just two days earlier. The application comes as stablecoin issuers prepare for expected regulatory requirements under the GENIUS Act legislation, which recently passed the Senate. Ripple has also filed for a Federal Reserve master account through its Standard Custody subsidiary, which would allow it to hold RLUSD stablecoin reserves directly with the Fed and provide more flexibility for processing digital assets. [Read more at X]

Peter Thiel joins tech billionaires backing new lender Erebor to rival Silicon Valley Bank (FT)

A group of tech billionaires including Palmer Luckey of Anduril and Joe Lonsdale of 8VC are launching Erebor, a new US bank designed to serve the gap left by Silicon Valley Bank’s collapse in 2023. Backed by high-profile investors including Peter Thiel’s Founders Fund, the bank aims to serve tech companies and crypto businesses that traditional banks often reject, with a particular focus on virtual currencies, AI, defense, and manufacturing companies. Erebor has applied for a national bank charter and plans to differentiate itself by working with underserved customers who lack sufficient access to credit, with stablecoin transactions expected to be a significant part of its operations. The bank will be headquartered in Columbus, Ohio, with a New York office, and will operate primarily through digital channels. [Read more at the FT]

Moody’s Brings Credit Ratings Onchain via Solana (CoinTelegraph)

Moody’s partnered with fintech startup Alphaledger in June 2025 to run a pilot program exploring how traditional credit ratings could be integrated into blockchain systems using the Solana network. The experiment involved creating a tokenized municipal bond on Solana, with Moody’s providing a real credit rating that was then pushed directly onto the blockchain via API, making it permanently embedded and publicly viewable as part of the token’s metadata. This allows smart contracts and decentralized applications to automatically query bond ratings without needing external verification, potentially enabling real-time credit assessments, automated compliance, and new forms of programmable financial infrastructure. [Read more at CoinTelegraph]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20250701)

July 1, 2025July 1, 2025 ~ kiffmeister

ECB Commits to DLT Settlement Plans with Dual-Track Strategy (ECB)

The European Central Bank (ECB) will follow a dual-track strategy to enable distributed ledger technology (DLT) transaction settlement using central bank money. The “Pontes” track is a short-term solution that will pilot connections between DLT platforms and the Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET) platform by the end of Q3 2026. “Appia” is a long-term approach focused on creating innovative, integrated financial ecosystems, like the “full DLT” solutions tested by the Banque d France” in which settlements were completed using on-chain “exploratory cash tokens” (i.e., wholesale central bank digital currency (CBDC)). This decision builds on the Eurosystem’s 2024 exploratory work involving 64 participants conducting over 50 DLT trials and experiments, the results of which were published along with the announcement of the dual-track strategy. [Read more at the ECB]

Swiss National Bank Extends and Expands Project Helvetia (SNB)

The Swiss National Bank (SNB) is extending and expanding Project Helvetia, which examines various approaches to settling tokenized assets in central bank money, for a further year and continue the pilot until at least mid-2027. (The project was slated to end a two-year extension on June 2026.) Additionally, the SNB is expanding Project Helvetia to include the settlement of tokenized assets with traditional central bank money through a real time gross settlement (RTGS) link, providing BX Digital with a production environment to test this approach alongside the existing wholesale central bank digital currency (CBDC) settlement on the SIX Digital Exchange platform. The extension allows for a direct comparison between the two settlement approaches in a production environment to provide further insights into their respective advantages and disadvantages. [Read more at the SNB]

Robinhood Launches Layer-2 Blockchain for Stock Trading in Europe (CoinTelegraph)

Robinhood launched a tokenization-focused layer-2 blockchain and introducing stock token trading European Union (EU) users. Built on Arbitrum, the new layer-2 network will enable the issuance of over 200 US stock and exchange-traded fund (ETF) tokens, giving European investors access to U.S. assets. Robinhood’s stock tokens will have zero commissions and be available for trading 24 hours a day, five days a week. [Read more at Robinhood]

Paxos Launches Global Dollar USDG in the EU (Ledger Insights)

Paxos has launched its Global Dollar stablecoin (USDG) in the European Union in compliance with local Markets in Crypto-Assets (MiCA) regulations, with initial distributors including Kraken and Gate. The stablecoin operates under a revenue-sharing model where Paxos shares most of the revenues earned on reserves with distribution partners, departing from industry norms. Originally issued under Singapore laws, USDG entered the EU market through Paxos’s acquisition of Finland’s Membrane Finance, which held a MiCA license. The launch highlights the complexity of managing multi-jurisdictional stablecoins, as EU regulations require 30% of reserves to be held as cash in local bank accounts, necessitating a rebalancing process that has drawn criticism from EU parliamentarians who worry about potential regulatory circumvention during crisis situations. [Read more at Paxos]

Circle Applies for National Trust Charter (Circle)

Circle submitted an application to the Office of the Comptroller of the Currency (OCC) to establish a national trust bank, First National Digital Currency Bank, N.A. If approved, the bank would be authorized to operate as a federally regulated trust institution, subject to OCC oversight, and would oversee the management of the USDC Reserve on behalf of Circle’s U.S. issuer. An approval would also further strengthen the infrastructure that supports the issuance and circulation of USDC and would offer digital asset custody services to institutional customers. A federally regulated trust charter would also help Circle meet expected requirements under the proposed GENIUS Act legislation, which would represent a meaningful step forward in integrating digital assets into the broader U.S. financial system. [Read more at Circle]

New Technology and Settlement in Central Bank Money Between Banks (Danmarks Nationalbank)

Danmarks Nationalbank published a paper that examines how distributed ledger technology (DLT) could transform financial market infrastructure while maintaining the critical role of central bank money in interbank settlements. The paper explains that while DLT platforms offer potential benefits like streamlined capital markets, automated smart contracts, and reduced intermediaries, they currently cannot integrate with central bank money systems, creating risks of market fragmentation and reduced monetary policy effectiveness. To address this challenge, central banks are exploring two main approaches: connecting existing central bank systems to DLT platforms through interoperability solutions, or developing new systems where central bank money and digital assets operate on the same DLT platform. The analysis emphasizes that regardless of technological advances, maintaining central bank money as the primary settlement asset is essential for financial stability, and Denmark will collaborate with the European Central Bank (ECB) through the TARGET Services platform to ensure future settlement infrastructure developments benefit the Danish financial system while preserving the unique safety and liquidity properties of central bank money. [Read more at Danmarks Nationalbank]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20250617)

June 17, 2025June 17, 2025 ~ kiffmeister

Retail CBDC Design for Basic Payments Feasibility Study (BOC)

The Bank of Canada (BOC) published a paper that explores the technical architecture for a retail central bank digital currency (CBDC) tailored for basic payments. The authors analyze a micro-partitioned system based on the UTXO (unspent transaction output) funds model, using a two-tiered model based on OpenCBDC 2PC as a representative design. It found that the baseline design handles over 250,000 transactions per second (TPS), though privacy-preserving variants (e.g., Pedersen commitments) reduce performance. Privacy is enhanced by minimizing central bank visibility into user data, with optional anonymity for users. Challenges include integrating with existing retail payment systems, auditing large-scale monetary supplies, and ensuring core system resilience. The study concludes that such architectures are feasible for basic payments but highlights areas needing further research, such as compliance mechanisms and recovery protocols for system outages. [Read more at the BOC]

Coinbase Seeking US SEC Approval to Offer Blockchain-Based Stocks (Reuters)

Coinbase is seeking U.S. Securities and Exchange Commission (SEC) approval to offer tokenized equities. Chief Legal Officer Paul Grewal described the initiative as a “huge priority,” emphasizing the benefits—lower trading costs, faster settlement, and 24/7 access—while acknowledging lingering concerns over liquidity, global standards, and regulatory clarity. To proceed in the U.S., Coinbase must secure a “no-action letter” or similar exemptive relief from the SEC, since it isn’t registered as a broker-dealer. Grewal did not specify whether a formal SEC request had been filed or when the launch might occur, though the move follows rival Kraken’s recent rollout of tokenized U.S. equities outside the United States. [Read more at Reuters]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20250415)

April 15, 2025April 15, 2025 ~ kiffmeister

A formally defined model to describe and compare payment system architectures (BIS)

The Bank for International Settlements (BIS) proposed a formally defined model to represent three key functions of payment system architectures: issuance/withdrawal, holding and transfer of funds in a standardized manner. The model defines payment diagrams, using a precisely defined syntax. The paper illustrates the application of these diagrams for domestic and cross-border account transfers, as well as cash, card, e-money and stablecoin payments. However, the payment diagrams can be used for any type of funds and can be applied across different payment system architectures. It also demonstrates how the diagrams correspond to the balance sheet approach commonly used in economics, and that it offers added value by providing an end-to-end visualization of every stage of the payment journey. The model provides a tool for central banks, regulators and the payment industry to better understand and compare existing and new payment system architectures. [Read more at the BIS]

Fnality rolls out “earmarking” for programmable payments (Fnality)

Fnality has released a new “earmarking” feature that allows banks to program funds for release upon receipt of proof of an event elsewhere. For example, institutions will be able to systematically program when funds move in exchange for a specified asset, or a related market event. A proof is a cryptographically signed piece of data representing specific information from another system, triggering the release of the £FnPS’s digital representation of central bank funds. When an earmark is in place prior to its release, the funds remain on the originating participant’s balance sheet at all times. [Read more at Fnality]

Kiffmeister’s #Fintech Daily Digest (20250118)

January 18, 2025 ~ kiffmeister

The economic limits of cryptocurrencies and blockchains (QJE)

The Quarterly Journal of Economics (QJE) published a paper by Eric Budish that shows that Nakamoto’s form of trust is economically limited. A zero-profit condition on the quantity of honest blockchain “trust support” (work, stake, etc.) and an incentive-compatibility condition on the system’s security against majority attack together imply an equilibrium constraint which says that the “flow” cost of blockchain trust has to be large at all times relative to the benefits of attacking the system. This is extremely expensive relative to traditional forms of trust and scales linearly with the value of attack. However, the paper’s analysis is consistent with the continued use of cryptocurrencies and blockchains for black market purposes, and more generally in use cases where users are willing to pay the high implicit costs of anonymous, decentralized trust. [Read more at the QJE and see also McConnell (2017)]

To be clear, the Budish paper’s critique is of blockchains and permissionless consensus, not of distributed databases with trust grounded in traditional sources. (see Budish and Sunderam (2023) for discussion of the potential value of the blockchain data structure in the context of traditional finance).

Fostering empathy for Canadians facing challenges with digital payment systems (BOC)

The Bank of Canada (BOC) published a paper on designing inclusive and user-friendly digital payment systems, focusing on fostering empathy for and identifying the needs of users who exhibit behaviors that indicate they encounter accessibility or usability barriers in digital systems. Specifically, it examines two types of users based on two common behaviors: users who rely on others to perform tasks and those who avoid interacting with technology. The findings show that individuals in the two groups avoid systems they expect lack usability. Addressing these issues through standard accessibility practices, live assistance and thoughtful interface design can enhance user interaction and trust. For accessibility issues that cannot realistically be eliminated, technology that enhances cooperative relationships and allows account owners to control information sharing is key. [Read more at the BOC]

Sponsored Content:

Supercharge your CBDC research and deployment strategy with Chavanette’s Alpha Knowledge Platform (⍺LP)—the ultimate resource for deep insights into CBDCs and the ecosystem of CBDC technology providers and solutions. Get insider access to the top 20 CBDC platforms through the GALACTIC GRID, dissected by Chavanette’s expert framework. Lead the digital central banking revolution with the tools necessary to deploy Central Banking 4.0—stay informed, stay bold, stay transformative. Be the leader. Register for access here and get a 10% discount on the first year with the kiffmeister10 code.

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 (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]

Sponsored Content:

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]

Kiffmeister’s #Fintech Daily Digest (20241127)

November 27, 2024November 27, 2024 ~ kiffmeister

Retail CBDC legal and system design considerations (BIS)

The Bank for International Settlements (BIS) published reports on retail central bank digital currency (CBDC) system design and legal considerations. They were written by a group comprised of the BIS and seven central banks (Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Board of Governors of the Federal Reserve System, Sveriges Riksbank and the Swiss National Bank). The system design paper provides perspectives on overall system design and four key issues: privacy, cyber security (including quantum computing), offline functionality and point of sale considerations. The legal paper examines key legal questions, focusing on four areas: the legal classification of retail CBDC; the obligations and liabilities of participants in the retail CBDC ecosystem; privacy and financial crime and cross-border issues. [Read more at the BIS]

Russian ministry urges 2-year transition period for CBDC (Crypto.News)

The Russian Ministry of Industry and Trade has called for a two-year transition period before making merchant acceptance of digital ruble payments mandatory, citing concerns over unprepared infrastructure. The draft law that would make digital ruble payments mandatory for large retailers by July 2025, which could create serious challenges for those businesses. The Ministry particularly emphasized the need for clear operational guidelines, and additional time to finalize software, update information systems, conduct testing, and train staff. [Read more at Izvestia]

Automated fund administration and transfer agency using smart contracts (Chainlink)

As part of the Monetary Authority of Singapore (MAS) Project Guardian, SBI Digital Markets, UBS Asset Management, and Chainlink completed the implementation of a tokenized fund. They showed how tokenization, smart contracts, and Chainlink infrastructure can automate the fund management process for fund administrators and transfer agents. The pilot demonstrated the possibility for a tokenized fund to maintain its share register on one blockchain while using Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to enable the processing of intensive fund lifecycle activities on another blockchain with different underlying security, cost, and efficiency properties. [Read more at PR Newswire]

Sponsored Content:

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]

Kiffmeister’s #Fintech Daily Digest (20241112)

November 12, 2024November 12, 2024 ~ kiffmeister

CDC issues €100m digital bond settled with pilot wCBDC (Ledger Insights)

Caisse des Dépôts et Consignations (CDC) issued a €100 million digital bond settled using the Banque de France’s DL3S distributed ledger technology (DLT) platform using its pilot wholesale central bank digital currency (CBDC). The transaction formed part of the European Central Bank’s wholesale distributed ledger technology (DLT) settlement trials. The Banque de France avoids using the term wholesale CBDC, instead referring to it as a tokenized representation of central bank money. For the CDC issuance, it required synchronizing the issuance of the digitally native note (DNN) on Euroclear’s D-FMI platform with the settlement on the central bank’s DL3S. [Read more at Ledger Insights]

Use of DLT and tokenization in financial markets (AFME)

The Association for Financial Markets in Europe (AFME) published a response to a call for submissions from the European Commission (EC) Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) on any issues and opportunities relating to the deployment of DLT based infrastructure and services in the European Union (EU) that may merit the EC’s attention. AFME’s overarching view is that a transformative potential of DLT is that can enable companies and individuals to access a shared, peer-validated database as a single-source-of-truth, without the need to centralize data and transaction processing with a single actor. This increases accessibility by participants, data security and immutability, and data transparency in the real economy. Innovation in finance plays a key role in this vision, which will only begin in earnest with the updating of capital markets infrastructure. [Download the response at the AFME]

JPMorgan renames Onyx blockchain platform to Kinexys (CoinDesk)

JPMorgan (JPM) rebranded its blockchain platform, formerly Onyx, as Kinexys, and its JPM Coin System has been renamed “Kinexys Digital Payments”. The bank also said it plans to introduce on-chain foreign exchange capabilities to the platform as early as the first quarter of 2025, paving the way for the “automation of 24/7, near real-time multicurrency clearing and settlement.” The service will first be available for the U.S. dollar and euro with plans to expand to other currencies. [Read more at JPM]

Sponsored Content:

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]