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Cronos Labs launches zkEVM chain testnetCronos Labs, the developer behind the Cronos blockchain ecosystem, is charting a new path in the blockchain space by launching a zkEVM chain.From Cosmos to EthereumThe Cronos zkEVM chain is being launched in the first instance as a test network. The layer-2 blockchain will rely upon ZK Stack, the software kit developed by Matter Labs. In this way, the project will be extending its scaling roadmap from Cosmos to Ethereum. As Matter Lab’s SVP of Business and Operations, Marco Cora put it:“When we introduced the ZK Stack, we opened up the door for anyone wanting to build on top of Ethereum to do so by deploying hyperchains. Whether you’re building a specialized Rollup or a general purpose one, hyperchains allow you to tap into Ethereum’s extensive userbase base and liquidity while preserving its robust security and decentralization.”The journey began with the creation of the first chain in the Cronos ecosystem — a Cosmos appchain developed in collaboration with Singapore-headquartered crypto platform Crypto.com and launched in 2021. Subsequently, Cronos introduced an EVM-compatible chain in 2022, built using the Cosmos SDK. Notably, these new endeavors complement, rather than replace, the earlier established chains.Photo by Kanchanara on UnsplashThe product of collaborative effortsA significant development in Cronos’ evolution is the introduction of zkEVM, a result of collaborative efforts involving Cronos Labs, Matter Labs and engineering teams from stakeholders Crypto.com and existing dApp developers. The zkEVM testnet is a breakthrough, utilizing Ethereum’s Sepolia testnet and incorporating zkSync’s open-source prover, Boojum — a STARK-based zero-knowledge proof system known for its efficiency in the layer-2 rollup space, with low hardware requirements and fees.The decision to launch a native Ethereum chain stemmed from challenges in bridging EVM chains and bridging between Cosmos and Ethereum, according to Ken Timsit, Managing Director at Cronos. Timsit emphasized the richness and robustness of the Ethereum developer ecosystem for building DeFi and NFT applications.Native account abstractionHyperchains within the ZK Stack share components, including a native bridge to the Ethereum mainnet and zkSync’s trustless bridging mechanism, ensuring assets remain secured by Ethereum. The implementation of zkSync’s native account abstraction allows transaction fee payments in various cryptocurrencies, including Cronos’ native token (CRO).Cronos’ zkEVM is anticipated to progress to the mainnet in the second quarter of 2024, marking a pivotal moment in the evolution of hyperchains.The landscape of hyperchains is expanding, with projects like GRVT and Tradable utilizing the ZK Stack. GRVT, a derivatives exchange, and Tradable, a tech firm focused on bringing private credit on-chain, exemplify the diversity and specialization within this emerging sector. Tradable aims to establish an institutional-focused hyperchain, potentially forming a decentralized chain alongside other institutional partners.Matter Labs views the zkSync hyperchain as a superior option compared to app-specific chains in Cosmos, emphasizing the scalability and security benefits. Hyperchains, a potential alternative to private blockchain frameworks like Hyperledger or Corda, offer technical scalability with the benefits of Ethereum. However, practical scalability remains a challenge due to cost considerations and the social coordination problem.

SBI Holdings and TradeFinex Partner to Create a Trade Finance JV in JapanJapanese financial services conglomerate SBI Holdings has joined forces with UAE-based TradeFinex to establish a dynamic joint venture. The objective of the partnership is to propel the widespread adoption of the XDC Network within Japan’s trade finance sector.Details of the agreement between the firms emerged last Friday. The strategic collaboration represents a move toward harnessing blockchain technology to infuse transparency, efficiency, and accessibility into the fabric of trade finance and supply chain management.At its core, the XDC Network stands as an enterprise blockchain platform which is compatible with the Ethereum virtual machine (EVM). In recent times, the XDC Network has cultivated partnerships with several international organizations, including the World Trade Organization (WTO) and the International Chamber of Commerce (ICC). It has pioneered solutions aimed at cost reduction, transaction acceleration, and transparency augmentation within the trade finance sphere.Photo by Timelab on UnsplashBuilding upon related partnershipSBI Holdings, deeply ingrained in Japan’s financial services sector, has taken significant strides to embrace the potential of blockchain technology. Earlier this year, its subsidiary, SBI VC Trade, partnered with the XDC Network, becoming the inaugural Japanese exchange to facilitate the cryptocurrency asset XDC. Building upon this previous collaboration, SBI VC Trade has been proactive in championing the expansion of the XDC Network’s presence in Japan.The freshly minted joint venture between SBI Holdings and TradeFinex has the potential to serve as a catalyst for further XDC Network growth in Japan. A central goal is to localize XDC Network-related information, thereby rendering it more accessible to Japanese businesses and investors.Additionally, the venture is actively scouting for cryptocurrency exchanges who are prepared to use and promote the XDC network, further amplifying its adoption. Exploring collaborations with subnet and layer-2 enterprises forms an integral part of their strategy.Japan’s evolving stance on blockchainThe timing of this collaboration coincides with Japan’s evolving stance on blockchain technology and cryptocurrencies. Emerging reports indicate the Japanese government’s contemplation of allowing startups to raise capital through cryptocurrency tokens, marking a seismic shift away from conventional stock listing processes.In April the Japanese government released a whitepaper on Web3, in its efforts to explore ways to foster innovation in the emerging sector. Furthermore, Japan’s National Tax Agency has made adjustments to its cryptocurrency-related tax code, underscoring a proactive stance toward regulating the cryptocurrency industry. Related to that, the country’s Financial Services Agency (FSA) has been exploring tax exemptions relative to unrealized crypto gains.Japan has become known historically as a center of technological innovation. There have been soundings recently that it can rediscover its abilities in that respect through the development of Web3.The strategic alliance between SBI Holdings and TradeFinex charts a promising trajectory for the XDC Network within Japan’s trade finance sector. Anchored in a project that aspires to offer innovation, transparency, and operational efficiency, this joint venture offers considerable potential to spearhead the adoption of blockchain technology within one of the world’s most prominent financial markets.

Indian cryptocurrency investment platform Mudrex has unveiled plans to provide access to U.S. spot Bitcoin exchange-traded funds (ETFs) for investors within the world’s most populous country. Serving Indian institutional investorsThis initiative, as disclosed by CEO and co-founder Edul Patel in discussion with local media, marks a particularly significant milestone for Indian institutional investors who previously lacked direct access to spot Bitcoin ETFs, which were predominantly available to retail investors through U.S. stock investing firms. In its initial phase, Mudrex intends to list the top four BTC ETFs from prominent entities including BlackRock, Fidelity and Franklin Templeton. While eleven BTC ETF products currently exist in the United States, most commentators agree that there will be a consolidation with the majority unlikely to survive in the long run. Mudrex will ensure compliance by being registered with the Financial Intelligence Unit (FIU) of India. The company already provides clients with access to a diverse selection of over 350 cryptocurrencies and crypto baskets, coupled with the provision of actionable insights to help clients reach investment decisions effectively. Patel outlined the rationale behind the product offering, stating:“Seeing the increasing demand for Bitcoin spot ETFs and user requests on our platform in the past few months, we have decided to launch it for Indian investors.”Photo by rupixen on UnsplashPurchased under Liberalized Remittance SchemeMudrex ensures actual transactions are processed through broker partners in the U.S., while its Indian subsidiary facilitates the spot Bitcoin ETF service. This development unfolds amidst a nuanced regulatory environment in India, where regulatory bodies such as the Reserve Bank of India (RBI) and the Finance Ministry's Intelligence Unit hold varying stances on cryptocurrency. While the RBI remains cautious about crypto, the Finance Ministry's Intelligence Unit has registered numerous Indian crypto service providers and imposed rigorous taxation policies. Patel expanded on the alignment of spot Bitcoin ETFs with the Liberalized Remittance Scheme (LRS), a framework that simplifies overseas investments for Indian investors. The Reserve Bank of India (RBI) prescribes a limit of $250,000 per year for overseas investments by Indians under the LRS. In line with that, Mudrex is facilitating a minimum investment of $5,000 and a maximum of $250,000. Accessing spot Bitcoin ETFs through Mudrex under the LRS framework offers a more tax-efficient avenue compared to domestic crypto exchanges in India. Among Mudrex's clientele, comprising approximately 350 institutions, Patel reveals that around 20 have initiated the process of joining the platform for spot BTC ETF investments. With an anticipated average ticket size of $110,000, this demonstrates a growing appetite among institutional investors for exposure to Bitcoin ETFs facilitated through Mudrex's platform. This move by Mudrex is interesting when contrasted with recent comments made by RBI governor Shaktikanta Das, who suggested that the central bank wasn’t in favor of the offering of such products in India despite the decision by the U.S. authorities to permit spot Bitcoin ETFs. Hong Kong is working towards the approval of such products while hoping to get out in front of the competition by being the first to launch a similar Ethereum-based product. Meanwhile, the London Stock Exchange announced on March 11 that it intends to commence accepting applications for Bitcoin and Ether exchange-traded notes (ETN).