Tether launched USA₮, a U.S. dollar-backed stablecoin specifically designed for the U.S. market under the GENIUS Act framework. Issued by Anchorage Digital Bank (America’s first federally regulated stablecoin issuer), USA₮ aims to provide institutions with a compliant digital dollar alternative while Tether’s global USD₮ continues operating worldwide. The stablecoin features Cantor Fitzgerald as reserve custodian, bank-grade compliance infrastructure, and is initially available on major exchanges including Bybit, Crypto.com, Kraken, OKX, and Moonpay. This launch represents Tether’s effort to strengthen U.S. dollar dominance in the digital economy while meeting American regulatory standards. The press release notes that Tether is the 17th-largest holder of U.S. Treasuries globally, ahead of sovereign holders including Germany, South Korea, and Australia. [Source: Tether]
The European Central Bank (ECB) announced that it will accept marketable assets issued using distributed ledger technology (DLT) as eligible collateral for Eurosystem credit operations starting March 30, 2026. These DLT-based assets must meet standard Eurosystem collateral eligibility criteria and be available for settlement in systems compliant with the Central Securities Depository Regulation (CSDR) and reachable via TARGET2-Securities (T2S). The Eurosystem is also launching a work plan to explore whether DLT-native assets not represented in traditional securities settlement systems could become eligible collateral in the future, taking a staggered approach that considers market developments and evolving regulations like the DLT Pilot Regime and Markets in Crypto-Assets Regulation (MiCAR). This initiative reflects the ECB’s commitment to supporting innovation and technological progress in financial markets while maintaining safety and efficiency standards. [Source: ECB]
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.
The Hong Kong Monetary Authority (HKMA) has launched EnsembleTX, marking the new phase of Project Ensemble to enable real-value transactions in tokenized deposits and digital assets within a controlled pilot environment. Building on successful sandbox experiments since August 2024, this phase allows industry participants to settle digital asset transactions using tokenized deposits, initially focusing on transactions such as money market funds and real-time liquidity management. The project, running throughout 2026, will initially use the HKD RTGS system for interbank settlement and aims to facilitate 24/7 settlement in tokenized central bank money (CeBM), further developing Hong Kong’s tokenization ecosystem. HKMA and the Securities and Futures Commission will continue collaborating to advance practical applications of tokenization. [Source: HKMA]
The Bank of England (BOE), Monetary Authority of Singapore (MAS), and Bank of Thailand (BOT) announced a collaborative project to examine the technical and policy aspects of synchronized settlement for foreign exchange (FX) transactions across borders. Building on insights from Project Meridian FX, the initiative will test interoperability and complex, multilateral use cases by leveraging simulated Real Time Gross Settlement (RTGS) systems and distributed ledger technology (DLT) environments. The goal is to enable atomic, real-time FX transactions that are fast, secure, and interoperable, potentially supporting payment-versus-payment FX settlement across various infrastructures and regulatory frameworks. [Source: BOE]
Upcoming Speaking Engagements:
The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 code!]
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.
I’ve updated my tabulation of the 110 central banks that have recently conducted launched, piloted, experimented with and/or researched retail central bank digital currency (#CBDC). This total is unchanged since the end-August update. It doesn’t include the two that started issuing retail CBDC and then shut the platforms down (Ecuador and Finland). Keep in mind that I don’t count all of the individual national central banks that are part of currency unions (e.g., the European or Eastern Caribbean Currency Unions)
UBS completed the first on-chain redemption of a tokenized fund using Chainlink’s Digital Transfer Agent (DTA). The transaction involved the UBS USD Money Market Investment Fund Token (uMINT) on Ethereum, with DigiFT serving as the on-chain distributor. Through automation and integration of digital and traditional systems, UBS aims to streamline major processes such as order-taking, execution, and settlement, reducing operational complexity and accelerating processing times. This initiative, part of UBS Tokenize, demonstrates how smart contract technology and technical standards can enhance fund operations and expand possibilities for financial product composability, while also illustrating efforts to connect legacy banking systems to blockchain rails using technologies like Chainlink and Swift. [Source: UBS]
Upcoming Speaking Engagements:
The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 code!]
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.
The Bank of England (BOE) published a digital pound design note that explores how alternative aliases, such as mobile numbers, email addresses, or randomly generated codes, could improve convenience, privacy, and interoperability in retail payments. The note highlights that, when used as alternative identifiers for digital money accounts, aliases can improve the convenience, privacy and security of retail payments, while also supporting interoperability between different payment schemes and jurisdictions. The BOE proposes that a digital pound alias service should be integrated into its infrastructure, ensuring neutral mapping of aliases to user accounts irrespective of provider, but with careful safeguards for privacy. The preferred model would see the BOE host or orchestrate the service while potentially delegating data management to intermediaries (payment interface providers), balancing system control with innovation and privacy. [Source: BOE]
The BOE launched its Synchronization Lab, a non-live environment aimed at helping industry participants demonstrate and test synchronization use cases for the renewed real-time gross settlement (RTGS) service (RT2). The Lab enables potential synchronization operators, such as RTGS account holders, asset ledger operators, and end-customers, to experiment with and validate business models, technical designs, and settlement processes for synchronized (atomic) transactions in central bank money. Running for six months starting in spring 2026, it will provide a platform for hands-on prototyping and evaluation of different synchronization models, allowing participants to build, integrate, and demonstrate their solutions while the Bank gathers insights to refine the RTGS synchronization capability for future production. The initiative is complementary to the Bank’s other innovation programs but does not involve real-money payments or constitute a regulatory sandbox. [Source: BOE]
The BIS Financial Stability Institute (FSI) published a brief that analyzes regulatory approaches for stablecoin-related yield products, where crypto-asset service providers (CASPs) offer returns to holders of payment stablecoins, despite these tokens not being designed to generate on-chain yields. CASPs create returns through mechanisms such as lending, margin pools, DeFi protocols, or loyalty programs, which blur payment-investment boundaries and expose users to consumer protection risks, absent deposit insurance or strict oversight. While all surveyed jurisdictions prohibit issuers from directly remunerating stablecoin balances, regulation of CASP-provided yields varies: some (EU, Hong Kong) ban yield products entirely, some (Singapore) restrict them for retail users but allow for professionals, and others (US) currently lack explicit prohibitions. The paper highlights potential risks of these products, including consumer protection holes, financial stability vulnerabilities, and operational conflicts of interest. Addressing these risks may require a regulatory framework that cover CASPs’ stablecoin-related activities, close regulatory gaps and safeguard end users’ protection and financial stability. [Source: BIS FSI]
Vantage Bank and Custodia have launched a platform enabling U.S. community and regional banks to offer tokenized deposits and stablecoins, integrating these digital assets directly into online banking environments. This interoperable solution allows member banks to control their own wallets for tokenized deposits and stablecoins, shifting tokens seamlessly between regulatory categories while maintaining oversight and deposit stability. Early use cases include instant cross-border payments and flexible payroll options. The initiative distinguishes itself by addressing interoperability—creating a single token usable as both a tokenized deposit and a stablecoin—and offers open access to institutions of all sizes. Custodia’s compliance credentials ensure regulatory alignment, and the system is designed to preserve deposit stability within banks, and unify tokenized deposits and Avit stablecoins under a shared smart contract framework. Only traditional and tokenized deposits are FDIC insured; stablecoins remain uninsured and subject to regulatory risks. [Source: Custodia Bank]
Upcoming Speaking Engagements:
The Digital Euro Conference 2026 (Frankfurt, March 26) will explore the future of money with a focus on CBDCs, stablecoins, and commercial bank tokens. This hybrid event offers the perfect platform to understand the future of digital money! When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [register here]
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.
Binur Zhalenov, Chief Digital Officer of the National Bank of Kazakhstan provided an update on the central bank’s digital tenge R3 Corda-based digital currency (CBDC) pilot project. The project centers on programmable public finance—enabling conditional, automated fund disbursement in government spending. In this model, allocated funds (such as those for infrastructure contracts) proceed through the payment chain only when predefined criteria are satisfied: supplier licensing, price compliance, and project plan alignment. Funds that fail verification are automatically blocked, while those reaching final recipients convert to unrestricted currency. The framework extends to social welfare payments, where beneficiary verification triggers direct payment to service providers, and to transaction types such as vehicle purchases. The team currently collaborates with the Ministry of Finance and Treasury on approximately 100 implementation projects applying these conditional “purpose-bound” payment mechanisms. [Source: LinkedIn]
Reserve Bank of India (RBI) Governor Shri Sanjay Malhotra announced that the central bank has conceptualised the Unified Markets Interface (UMI), as a next-generation financial market infrastructure. UMI will have the capability to tokenize financial assets and settlements using wholesale central bank’s digital currency (CBDC). He said that early results from the inaugural pilot on the issuance of certificates of deposit in improving market efficiency are encouraging. [Source: RBI]
G+D’s Lars Hupel posted a paper that explores the design and financial implications of offline payment functionality in the context of CBDCs and other payment systems, such as instant payment systems (IPS). The analysis is structured around three models: the classic CBDC (single central bank issuer), a multi-issuer system (commercial banks issue their own offline “digital cash”), and a single-issuer model operated by a private or non-central bank entity. The core argument is that while offline payments are desirable—and well understood for central bank-issued digital cash—adding offline capability to systems with multiple issuers introduces financial risks and complexities, primarily concerning the fungibility of liabilities and interbank settlement. Drawing on historical examples like Mondex, the paper suggests a single-issuer model is most practical, offering the advantages of offline payments without overburdening central banks or complicating risk management. The analysis is informed by the “money view,” which emphasizes the hierarchy of money and careful consideration of balance sheet mechanics for each model. [Source: LinkedIn]
Upcoming Speaking Engagements:
Stablecoin C-Suite Summit (New York City on November 14-15) will be the definitive conference for exploring the future of digital money and intelligent payments. The event brings together founders, C-level executives, investors, policymakers, and developers for two immersive days of talks, panels, and networking. This be the place to be if you’re building, backing, or regulating the next wave of programmable finance. [Register here]
The Digital Euro Conference 2026 (Frankfurt, March 26) will explore the future of money with a focus on CBDCs, stablecoins, and commercial bank tokens. This hybrid event offers the perfect platform to understand the future of digital money! When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [register here]
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.
The European Central Bank (ECB) published an analysis of potential banking sector disintermediation associated with the introduction of a digital euro, finding that potential deposit outflows vary substantially by scenario. Under the business-as-usual scenario, outflows from banks are modest for all assessed holding limits, with total outflows well below stress thresholds—deposit inflows from payment digitalization until 2034 (about €127 billion) may actually exceed digital euro outflows for limits up to €3,000. In the flight-to-safety scenario—a highly unlikely, systemic confidence crisis—the maximum aggregate deposit outflow rises from €156 billion with a €500 holding limit to €699 billion with a €3,000 limit (representing up to 8.2% of retail sight deposits and 2.2% of total banking sector assets). For comparison, past real-world crises saw much higher retail deposit outflows: 20.9% in Cyprus (2013) and 25.9% in Greece (2015). Even under stress, most banks maintain liquidity and funding buffers well above regulatory minima, and only a handful would risk falling below these thresholds. The analysis underscores that careful design of digital euro holding limits is critical, as limits contain outflows and help maintain financial stability. [Source: ECB]
The European Central Bank (ECB) published an assessment of digital euro investment costs for the euro area banking sector, incorporating critical factors overlooked in previous industry studies. The ECB argues that significant cost synergies and mutualization opportunities exist within the payment industry, which could substantially reduce the €18 billion figure estimated by a previous study by PricewaterhouseCoopers (PwC). By accounting for external synergies through shared vendors, outsourcing arrangements, and collaborative infrastructures—as well as adjusting for specific digital euro design features—the ECB estimates that actual implementation costs could range from €4-5.77 billion total (€1-1.44 billion annually over four years). This analysis reveals that banking group synergies within Institutional Protection Schemes (IPSs) could achieve 90-98% cost savings, while market synergies for independent banks could yield 25-40% reductions depending on vendor concentration and collaboration history. The report emphasizes that banks already extensively use shared solutions for payment channels and compliance functions, and this model can be leveraged for digital euro implementation, bringing costs closer to the European Commission’s original estimate of €2.8-5.4 billion. [Source: ECB]
Banque de France and Euroclear launching a joint project ( “Pythagore”) to tokenize Negotiable European Commercial Paper (NEU CP) using distributed ledger technology (DLT)—a major step to modernize the euro area’s largest short-term debt market, which has €310 billion outstanding. This initiative aims to enhance efficiency, transparency, and security in short-term financing. The pilot phase of the project is scheduled to start at the end of 2026, in line with the start of the pilot of the Eurosystem “Pontes” project (see below). [Source: Euroclear]
The Eurosystem has chosen a group of financial market participants and central banks to join the new Pontes market contact group, following a July call for expressions of interest. This group aims to facilitate focused dialogue around Pontes, a project designed to enable settlement of distributed ledger technology (DLT) transactions in euro using central bank money. Pontes will begin work in October 2025, initially targeting the pilot phase set for launch in Q3 2026, and later expanding its services. Pontes is a short-term solution for wholesale euro transaction settlement on DLT platforms, with a longer-term project, Appia, to follow, both building on the European Central Bank’s (ECB’s) earlier exploratory work regarding settlement using wholesale central bank digital currency (CBDC). [Source: ECB]
“A group of leading international banks is jointly exploring the issuance of a 1:1 reserve-backed form of digital money that provides a stable payment asset available on public blockchains, focused on G7 currencies. The group of banks includes Banco Santander, Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank Ltd, TD Bank Group and UBS. The objective of the initiative is to explore whether a new industry-wide offering could bring the benefits of digital assets and enhance competition across the market, while ensuring full compliance with regulatory requirements and best practice risk management. The group is in contact with regulators and supervisors in each relevant market and will continue to keep appropriate parties updated as the project progresses.” [Source: BNP Paribas]
Upcoming Speaking Engagements:
Stablecoin C-Suite Summit (New York City on November 14-15) will be the definitive conference for exploring the future of digital money and intelligent payments. The event brings together founders, C-level executives, investors, policymakers, and developers for two immersive days of talks, panels, and networking. This be the place to be if you’re building, backing, or regulating the next wave of programmable finance. [Register here]
The Digital Euro Conference 2026 (Frankfurt, March 26) will explore the future of money with a focus on CBDCs, stablecoins, and commercial bank tokens. This hybrid event offers the perfect platform to understand the future of digital money! When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [register here]
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.
The Reserve Bank of India (RBI) will reportedly launch a pilot program for deposit tokenization using wholesale central bank digital currency (CBDC) as the underlying infrastructure. Additionally, the RBI is exploring tokenization applications in money market instruments, including commercial paper. [Source: Reuters]
The ERC3643 Association published a paper that explores the use of ERC-3643 tokens as collateral for smart derivative contracts to modernize the uncleared over-the-counted (OTC) derivatives market. It identifies significant inefficiencies in the current system, where 38% of operational resources are consumed by manual processes and 45% of margin calls are disputed, creating high costs that exclude smaller market participants. Their proposed solution combines ERC-3643 compliant security tokens—which embed regulatory compliance, KYC/AML verification, and automated transfer restrictions—with smart derivative contracts based on the ERC-6123 standard. Through two detailed use cases the paper demonstrates how this approach can automate the entire trade lifecycle from identity verification and trade inception through ongoing margin management to final settlement. However, it acknowledges that institutional adoption will require custodian integration and privacy-preserving technologies like fully homomorphic encryption. [Source: ERC3643 Association]
Upcoming Speaking Engagements:
Stablecoin C-Suite Summit (New York City on November 14-15) will be the definitive conference for exploring the future of digital money and intelligent payments. The event brings together founders, C-level executives, investors, policymakers, and developers for two immersive days of talks, panels, and networking. This be the place to be if you’re building, backing, or regulating the next wave of programmable finance. [Register here]
The Digital Euro Conference 2026 (Frankfurt, March 26) will explore the future of money with a focus on CBDCs, stablecoins, and commercial bank tokens. This hybrid event offers the perfect platform to understand the future of digital money! When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [register here]
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.
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]
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.
The European Central Bank (ECB) published its third progress report on the preparation phase of a digital euro. Since the second report, the ECB has made progress on the draft digital euro scheme rulebook, which aims to harmonize digital euro payments across the euro area. The ECB has also conducted extensive user research and experimentation engaging with market participants, merchants, and consumers through various sessions and focus groups, to ensure the digital euro meets the needs of end users and provide technical input to support the legislative process. The project’s next steps include finalizing tender procedures to select providers for the digital euro platform and infrastructure, drafting the scheme rulebook, and testing and implementing the digital euro’s technical specifications. [Read more at the ECB]
The U.K. Treasury (HMT) provided an update on the preparations for its Digital Gilt Instrument (DIGIT) pilot. The government is still reviewing responses to the Preliminary Market Engagement Notice (PMEN) published in November 2024, but announced a further set of features to be tested in the pilot. These features include (i) delivering distributed ledger technology (DLT) on-chain settlement. prioritize solutions that allow DIGIT to be settled on DLT including the cash leg of DIGIT transactions, (ii) enabling settlement of over-the-counter trades including using smart contracts, (iii) working with industry, platform providers and existing market infrastructure providers to foster interoperability in supporting access to DIGIT from investors operating in both traditional and DLT markets, and (iv) delivering greater transparency. The government plans to engage with the Digital Markets Champion and appoint industry leads to these roles in the Autumn of 2025. Further details on the pilot will be published over the summer, with the aim of appointing suppliers later tin 2025. [Read more at HMT]
According to CEO Jane Fraser during a post-earnings call, Citigroup is considering issuing its own stablecoin, as part of the bank’s broader digital assets strategy, which includes reserve management and crypto custody services, aiming to strengthen its position in the digital payments space. Fraser pointed to the supportive regulatory framework under the Genius Act, which enables banks to participate more fully in digital assets. [Read more at Bloomberg]
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.
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 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 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 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]
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:
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.
