Bridgetower and Deus X establish $250M digital asset platform in UAE

CME Group Expands Crypto Reference Rates to Asian MarketsUS derivatives marketplace CME Group is making strides in its efforts to cater to the Asian cryptocurrency market. In collaboration with crypto indices provider CF Benchmarks, the company is set to launch new reference rates for Bitcoin (BTC) and Ether (ETH) aimed specifically at the Asia Pacific (APAC) region.Photo by Pierre Borthiry — Peiobty on UnsplashGoing live next monthThat’s according to a press release published by the company on Wednesday. These new rates, the CME CF Bitcoin Reference Rate APAC and CME CF Ether-Dollar Reference Rate APAC, are scheduled to become available on September 11, according to a joint announcement.This move comes in response to the growing demand from Asian investors and institutions for accurate pricing data during their local trading hours. Currently, a substantial portion of CME Group’s crypto volume, about 37%, occurs outside of US trading hours, with approximately 11% of trades originating from the APAC region. The new reference rates will be published daily at 4 p.m. Hong Kong time, allowing APAC-based participants to align their crypto price risk management more closely with their portfolio strategies.Building upon past effortsCME Group’s efforts to provide accurate and timely reference rates have been ongoing. The company initially introduced its Bitcoin Reference Rate (BRR) in 2016, followed by the Ether Reference Rate in 2018. The BRR calculates the US dollar price of one Bitcoin as of 4 p.m. London time. It leverages the trade flow data from major Bitcoin spot exchanges within a one-hour window to provide an average of volume-weighted medians across 12 five-minute intervals during that period.Notably, the newly announced Asia-focused reference rates will provide a variant to the existing rates tailored for London and New York. Giovanni Vicioso, CME Group’s Global Head of Cryptocurrency Products, emphasized that these APAC reference rates will facilitate more precise risk management for institutional clients utilizing Bitcoin and Ether futures products in their active portfolios or structured products like ETFs.Focusing on AsiaCME Group’s expansion into the APAC region aligns with a broader trend of institutional interest in cryptocurrencies in Asia. The region has seen regulatory developments aimed at providing clarity to crypto businesses over the course of the past twelve months while a lack of regulatory clarity currently prevails in the United States. This move also coincides with the company’s push to further engage with the global crypto derivatives market, which accounts for around 75% of the overall crypto trading volume.CME’s decision to launch Asia-focused reference rates is a strategic move to tap into the growing interest in cryptocurrencies from the Asia Pacific region. By offering accurate pricing information during APAC trading hours, the company aims to provide institutions and investors with better tools to manage their cryptocurrency price risks effectively. From the perspective of crypto market participants more broadly, the move is encouraging given that it comes from the world leader in derivatives markets.

UAE Forges Partnership to Develop Blockchain-Based Carbon Credit SystemIn an endeavor to combat climate change, the UAE Ministry of Climate Change and Environment (MOCCAE) has joined forces in an initial collaboration with the Industrial Innovation Group and the Venom Foundation to pioneer a groundbreaking blockchain-based carbon credit system.Photo by Daniel Zacatenco on UnsplashThis is the latest commitment by the Middle Eastern country to combat climate change after announcing an ambitious target to slash carbon emissions by a substantial 40% before 2030, a significant escalation from its prior commitments.According to local news sources, a memorandum of understanding (MoU) outlining the partnership was signed by the three entities at MCCE offices in Dubai recently.Carbon credits on blockchainAt the heart of this innovative endeavor lies blockchain technology, heralded as a pivotal tool for both organizations and nations to meticulously trace carbon credits. By virtue of its immutability, data enshrined within the blockchain ensures ironclad security, enabling the seamless sale or exchange of credits while upholding complete transparency among stakeholders.Functioning as crucial intermediaries, government entities such as the UAE’s MOCCAE are poised to either allocate or sell dual-purpose credits to businesses. Beneficiaries can deploy the credits, authorizing the emission of a predetermined quantum of carbon within specific timeframes, or they can be lucratively traded, thereby aiding other establishments in mitigating their ecological footprint.Venom blockchainVenom blockchain is a network developed by the Abu Dhabi-based Venom Foundation. As an asynchronous blockchain, its design implements dynamic sharding with flexible nodes that adapt to traffic changes, rendering it infinitely scalable. The project has established itself within the Abu Dhabi Global Market (ADGM), an international finance center and fintech hub.Revised environmental goalsThe UAE leadership recently orchestrated a sweeping recalibration of the nation’s environmental goals and carbon offset strategies. Envisioning a sustainable horizon, their overarching aspiration revolves around achieving carbon neutrality by 2050.Mariam Al Mheiri, UAE Minister of Climate Change and Environment, articulated how these shifts have cast a positive impact on the nation’s emissions reduction roadmaps:“The UAE believes in its ability to make a difference in this field and has pledged, through the third update of its second Nationally Determined Contributions (NDCs), to reduce its emissions by 40% compared to a business-as-usual scenario, an increase of 9% over its previous pledge.”Even though the UAE ranks 31st on a global scale in terms of total carbon emissions as of 2023, there stands a more sobering reality — the nation ranked sixth worldwide in terms of per capita emissions according to 2021 data. It also emitted a staggering 21.79 tonnes of carbon per capita in the same year.Concurrently with its overarching national push towards emissions reduction, each of the UAE’s seven emirates has unveiled localized initiatives to align with the bold “net zero by 2050” target.Among these, a comprehensive program championed by Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan has recently gained approval in Abu Dhabi, emblematic of a collective commitment to fostering a sustainable future.

Nomura’s Laser Ventures Invests in Singapore’s Solv ProtocolSolv Protocol, a Singapore-based DeFi startup, has revealed a significant stride forward with a $6 million funding round, drawing support from Laser Digital, the digital asset subsidiary of Japanese global financial services conglomerate Nomura.The project team provided details on the funding round via a blog post published to its website earlier this week. Accompanying Laser Digital in the funding round, Singapore’s UOB Venture Management also participated, alongside investors such as Matrix Partners, Bing Ventures, Mirana Ventures, Apollo Capital, Bytetrade Labs, and others.Photo by Towfiqu barbhuiya on Unsplash$14 million cumulative fundingThis injection raises its cumulative funding to an impressive $14 million. The innovative Solv Protocol has been developed to facilitate on-chain fund management within the realm of public blockchains.Delving into the intricacies of the Solv asset management protocol, Olivier Dang, COO of Nomura Securities’ wholesale digital office, expanded on its transformative potential, stating: “Solv has built a trustless institutional DeFi platform integrating brokers, underwriters, market makers, and custodians to create the first fund infrastructure on the blockchain to bridge DeFi, CeFi, and TradFi liquidity.”$100 million in trading volumeSolv Protocol is a DeFi infrastructure project that enables users to create and trade financial NFTs. The protocol concerns itself largely with ERC-3525, an Ethereum standard for semi-fungible tokens, the characteristics of which lend themselves well for financial use cases.At the heart of Solv’s business model lies a unique mechanism. Any fund utilizing its solution inherently allocates a portion of its assets under management. Inaugurated in the second quarter of this year, Solv has already facilitated over $100 million in trading volume.Semi-fungible token innovationThe origins of Solv are rooted in the pursuit of an optimal Ethereum token standard for effective fund management. Dissatisfied with existing standards, the founders, primarily Chinese technologists, forged an innovative path. Traditional ERC-20 fungible tokens weren’t deemed suitable due to the need for a new smart contract token for every customization. Similarly, non-fungible tokens (NFTs) posed limitations, being intrinsically designed as individual units not readily divisible, which is essential for issuing shares in a fund. The security token standard, ERC-1400, didn’t quite align either.Thus, Solv birthed the semi-fungible token through the development of ERC-3525, a groundbreaking solution to its unique challenge.While larger asset managers like Franklin Templeton and Ondo Finance have adhered to fungible tokens, a growing trend is emerging in the traditional asset management sector — a movement toward blockchain integration. UK-based Abrdn recently introduced a fund on the Hedera DLT network, while industry giant Schroders is exploring blockchain tokenization under Singapore’s Project Guardian initiative.It’s been an eventful week for Nomura’s Laser Digital. Alongside news of this investment, the company also announced its recent acquisition of a license from Dubai’s Virtual Asset Regulatory Authority (VARA). This regulatory green light bolsters its presence in the global digital asset sector.Nomura’s Laser Digital is amplifying its presence within the blockchain and digital asset domain, marking its sixth such investment within this year alone. Meanwhile, projects like Solv Protocol are pushing the boundaries of innovation through the development of semi-fungible tokens, extending the use cases of blockchain technology as it does so.