ZkLink Snags $10M Funding Ahead of Mainnet Launch

Singapore’s largest bank in terms of assets under management (AUM), DBS Bank, has introduced “DBS Token Services,” an offering it describes as “a new suite of banking services that integrate tokenisation and smart contract-enabled capabilities with its award-winning banking services.” The bank announced details of the new service offering via a press release published on its behalf by PR Newswire on Oct. 18. The product caters towards the needs of DBS Bank’s institutional clients, with the objective of unlocking operational efficiencies and transaction banking capabilities.  The product suite includes DBS Treasury Tokens, conditional payments and programmable rewards, with the latter allowing institutions to program and manage the use of funds. The products run on the bank’s permissioned blockchain, while being Ethereum virtual machine (EVM) compatible.Photo by Shubham Dhage on UnsplashRunning on permissioned blockchainThe bank pointed out the implications of operating the service over a permissioned blockchain network, stating:”Using a permissioned blockchain provides DBS full control over these services, enabling the bank to harness the benefits of blockchain technology while adhering to compliance standards.” Permissioned networks utilize distributed ledger technology (DLT) but they don’t truly embrace decentralization. They’ve proven popular with traditional financial services companies who want to still maintain ultimate control over the network. Conditional paymentsThe bank’s new product suite integrates tokenization and smart contract capabilities with existing conventional services. Those smart contracting capabilities make programmability an accessible feature for institutions relative to fund governance.  With that, conditional payments are likely to lead to an improvement in payment workflows for institutions. The bank believes that this aspect of its latest offering builds upon a recent pilot project that DBS engaged in alongside Enterprise Singapore and the Singapore Fintech Association (SFA). That project involved the utilization of blockchain technology, and in particular smart contracting, for the purpose of distributing government grants. DBS Token Services has been integrated with the bank’s core payment engine and various other banking sector payment infrastructures. Treasury Tokens enable institutional clients to settle multi-currency intra-group transactions across multiple markets instantaneously, 24/7. Back in August DBS partnered with digital payments provider Ant International, an affiliate of Chinese conglomerate Alibaba Group, on a pilot project involving blockchain-based treasury and liquidity management using Treasury Tokens. DBS Bank’s Group Head of Global Transaction Services, Lim Soon Chong, claimed that "by leveraging tokenisation and smart contract capabilities, DBS Token Services enables companies and public sector entities to optimise liquidity management, streamline operational workflows, strengthen business resilience, and unlock new opportunities for end-customer or end-user engagement.” Chong added that the new service is a leap forward in transaction banking, demonstrating “how established financial institutions can leverage blockchain technology to deliver new ground-breaking features and experiences.” Embracing blockchainDBS is an outlier in TradFi relative to blockchain and digital assets insofar as it has delved much deeper into the emerging technology by comparison with the majority of its peers. Last month, the company announced that it plans to introduce over-the-counter (OTC) crypto options trading and structured notes for institutional clients during Q4 2024. Earlier in the year, it participated in a proof of concept for FX payment versus payment (PvP) settlement on the blockchain of Singapore-based unified ledger market infrastructure firm Partior.

GRVT, a hybrid cryptocurrency exchange platform that bases its operations in Singapore, has secured a trading license in Bermuda which the project claims, makes it the first regulated decentralized exchange (DEX).  In a press release published on the project’s behalf by PR Newswire on Dec. 6, the project, which aspires to be “Goldman Sachs on blockchain,” announced the acquisition of a Class M Digital Asset Business License from the Bermuda Monetary Authority (BMA). Photo by GuerrillaBuzz on UnsplashAiming for further licensingThe license puts the firm on a path to operate as a fully regulated DEX. Securing this Class M license isn’t the end of the project’s regulatory compliant endeavors, however. Class M confers a “modified” exchange license under the Bermuda Digital Asset Business Act (DABA). Class M covers pre-operational activities while the service remains within a sandbox environment. The company hopes to have acquired Class F or “Full” licensing designation by mid-2025. At that point, GRVT will be in a position to take its service from a sandbox environment to full launch of its institutional-grade perps DEX in a regulatory compliant manner. On X GRVT suggested that this licensing is pivotal in the movement of decentralized finance (DeFi) towards mainstream adoption. “With this milestone, DeFi evolves - safer for users and institutions alike,” the project wrote. Hybrid approachAs a hybrid DEX, GRVT combines the decentralization of DeFi with the structure and compliance required for the participation of institutional investors. Commenting on this latest development, GRVT CEO Hong Yea stated:”We've always believed compliance should be the foundation for crypto and DeFi, not an afterthought. Without it, earning institutional trust—and bringing revolutionary technologies to the mainstream—becomes nearly impossible." Yea told Cointelegraph that in two weeks time, the project will officially launch its mainnet to all users. “Our trading volume will then be available through major external data providers,” he added. In preparation for that mainnet launch, the project announced in September that it had partnered with 16 market makers including Galaxy Trading, Amber Group, QCP and others, in order to ensure that the platform has sufficient liquidity in place to enable a smooth launch. Users have been testing the platform following its Open Beta Testnet launch in August. The GRVT CEO believes that the project can “unify cryptocurrency and mainstream finance, creating a system where assets move freely and all forms of value coexist in one integrated ecosystem.”   A regulated yet decentralized offeringReferring to the two main components baked into the GRVT offering, he said that “decentralization distributes control away from central authorities, promoting transparency, security, and user empowerment.” Meanwhile, “regulation establishes standards to protect users, ensure market integrity and promote fair practices.” In successfully pursuing licensing in Bermuda, GRVT joins a list of more than 30 firms in the digital assets sector who have obtained licensing in the British overseas territory. In October global cryptocurrency exchange platform Kraken launched a Bermuda-based derivatives trading business having obtained licensing from the BMA. USDM stablecoin issuer Mountain Protocol received a Class F license from the BMA in July. Other entities successfully licensed by the BMA include Coinbase, HashKey, Circle, Bittrex and Zero Hash.

In the aftermath of the massive $235 million hack of the WazirX cryptocurrency exchange on July 18, users and stakeholders are grappling with its devastating consequences. The breach, which compromised a significant portion of the exchange’s reserves, has led to a series of legal, financial and security-related challenges, leaving millions of users uncertain about the future of their funds. The hack and its aftermathWazirX, once a leading Indian cryptocurrency exchange, lost approximately $235 million due to a breach in one of its multi-signature wallets. This included significant amounts of Shiba Inu (SHIB), Ethereum (ETH) and other assets. The hack crippled the exchange, forcing it to temporarily shut down operations and seek a restructuring process under Singapore's insolvency laws. The WazirX hacker has since begun laundering the stolen assets through Tornado Cash, a crypto mixer known for obscuring transaction details. According to blockchain security firm Cyvers, the hacker transferred over 5,000 ETH (approximately $12 million) to a new wallet and laundered $10 million in Ethereum through Tornado Cash. This mirrors the tactics of the North Korea-backed Lazarus Group, which has used similar methods in past high-profile crypto thefts. Photo by GuerrillaBuzz on UnsplashUsers seeking redress and government interventionAs the victims of the hack face uncertainty, over 4 million active WazirX users are expected to suffer a loss of at least 43% of their funds due to the restructuring process. Frustrated by the lack of action from Indian authorities, many users have sought help from Indian Prime Minister Narendra Modi, who was visiting Singapore at the time. Users took to social media to air their grievances and demand justice, urging the government to intervene. WazirX co-founder Nischal Shetty, who is based in Dubai, added to the confusion by stating that he does not know who is responsible for safeguarding user crypto funds on the platform. His statement has fueled outrage among users, who feel abandoned by the exchange’s management. Legal and ownership disputesAmid the chaos, WazirX is also battling a legal dispute over its ownership with Binance, the world’s largest cryptocurrency exchange. Shetty has repeatedly claimed that Binance acquired WazirX, granting it significant control over the platform's operations. However, Binance founder Changpeng Zhao (CZ) refuted these claims in 2022, stating that the acquisition deal was never completed. The uncertainty surrounding the ownership of WazirX has further aggravated users, many of whom are demanding a clear statement from Binance. So far, Binance has remained silent, neither confirming nor denying its involvement. This ambiguity has intensified calls for clarification, with users fearing that a lack of transparency may worsen their chances of recovering their funds. Partial withdrawals and restructuring effortsIn response to the crisis, WazirX has initiated phased withdrawals for users, allowing them to access 66% of their Indian Rupee (INR) token balances. Initially set for September 9, the withdrawal window was moved forward, offering some relief to users. However, many are dissatisfied with the partial access to their funds and are questioning when full crypto withdrawals will resume. WazirX’s legal team has indicated that users may recover only 55% to 57% of their crypto holdings, sparking further discontent. Meanwhile, the exchange has filed a moratorium application in the Singapore High Court, seeking a six-month reprieve from legal actions as it works on a restructuring plan. Looking aheadAs the WazirX saga unfolds, the future of the exchange and its users remains uncertain. The legal battles, ownership disputes and the ongoing laundering of stolen assets pose significant challenges to the platform's recovery. For now, users can only hope that the restructuring process will bring them closer to recovering their lost funds and that authorities will step in to provide clarity and resolution.