Korean crypto exchange Upbit launches BTC-ETH Duo Index

SC Ventures and Deutsche Bank Execute Stablecoin Payments via UDPNSC Ventures, the Singaporean disruptive technology investment subsidiary of UK banking conglomerate Standard Chartered, has partnered with Deutsche Bank in completing the first successful proof of concept (PoC) for the Universal Digital Payments Network (UDPN).Photo by Conny Schneider on UnsplashConnecting blockchain networks with CBDCsThe UDPN is a brainchild of Hong Kong’s Red Date Technology, which in turn is a co-founder of the Chinese Blockchain-Based Service Network (BSN). The PoC was aimed at facilitating seamless connections between central bank digital currencies (CBDCs) and various blockchain networks through message-based transactions.News of the successful PoC emerged via a report by India’s English-language business newspaper Financial Express earlier this week. In conventional finance and international payments, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) is the foremost, dominant financial messaging service. Notably, UDPN distinguishes itself from SWIFT as it operates on a permissioned blockchain, ensuring heightened security and regulatory compliance.As part of the PoC, several real-time transfers and swaps of synthetic USDC and EURS (Stasis Euro stablecoin) were executed between the two banks. While SC Ventures utilized code that leveraged UDPN software development kits (SDKs) and APIs, Deutsche Bank employed a graphical user interface. Rafael Otero, CTO and CPO of Deutsche Bank’s Corporate Bank division, emphasized the significance of this trial, stating that it provides an opportunity to explore how clients can actively engage in the decentralized global economy. Otero sees this as the logical next step in the evolution of financial transactions.Overcoming digital currency adoption challengesUDPN has been under development in collaboration with consultancy firm GFT Technologies and DLA Piper’s Hong Kong-based digital asset creation platform, TOKO, with further governance provided by the UDPN Alliance.The primary goal of UDPN is to overcome the hurdles that hinder the broader adoption of digital currencies, especially in the face of the surging number of CBDCs, stablecoins, and deposit tokens. The lack of interoperability among these digital assets necessitates innovative solutions.Currently, interoperability among stablecoins primarily relies on centralized cryptocurrency exchanges. However, due to the absence of proper oversight and regulatory framework in these exchanges, this method is not a sustainable solution for achieving interoperability between CBDCs and deposit tokens.UDPN takes a unique approach by providing a decentralized identity infrastructure. The actual currency transactions occur on their respective native blockchains or infrastructures. This means that UDPN enables users to seamlessly swap a USDC stablecoin on one network for a Euro stablecoin on another or even a bank deposit token.Improving upon financial messaging systemsAs UDPN incorporates an element of financial messaging for digital currencies, this hybrid approach streamlines transactions, eliminates the need for reconciliations, and enables atomic settlement. Therefore, UDPN ensures that either both sides of a transaction succeed or both fail. In contrast, purely messaging-based systems can result in one side of the transaction failing.SWIFT recently experimented with a messaging solution to connect CBDCs, and other conventional integration methods are being explored, involving APIs and routing networks, such as finP2P. It has collaborated with the central banks of Hong Kong and Kazakhstan recently in testing CBDC connectors.A report by Nikkei Asia last week suggested that Standard Chartered is venturing further into the world of digital currencies, particularly so in Asia, via SC Ventures.

UAE Accelerates Cross-Border Payments with JPMorgan’s OnyxFirst Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates (UAE), has ventured into the world of blockchain technology through a partnership with JPMorgan and its Onyx blockchain.Photo by Kamil Rogalinski on UnsplashFast tracking cross-border transactionsInternational financial transactions have long been afflicted by intricate procedures and snail-paced response times. These challenges have been particularly acute when it comes to cross-border payments. In response, FAB will utilize JPMorgan’s Coin Systems in order to expedite and streamline such cross-border payments.Powered by blockchain technology, JPMorgan’s Coin Systems advocates for swift transfers and settlements through a secure, distributed ledger. This collaboration between FAB and JPMorgan’s Onyx division was announced via a press release published on Tuesday (local time).The initiative represents FAB’s efforts towards leveraging cutting-edge technology, while improving and redefining the customer experience. While the initial testing phase was a success, it’s merely a prologue to FAB’s broader plans to utilize the technology for global transactional banking.With assets totaling AED 1.1 trillion ($312 billion) as of mid-2023 and laudable ratings from Moody’s, S&P, and Fitch, FAB maintains a significant presence in banking in the Middle East region.Onyx blockchainJPMorgan launched its Onyx blockchain in 2020 as a permissioned blockchain network. It is understood that the network processes daily transactions to the value of between $1 billion and $2 billion through partnerships established with banks in the Middle East, Europe, and India. Among the services offered by Onyx Digital Assets are tokenized US treasury bonds and mortgage-backed securities alongside its JPM Coin.JPMorgan is not alone in terms of top-tier banks and financial services firms who are delving into the world of blockchain. Rivals such as Citi announced its Citi Token Services product offering in September. It’s a blockchain-based service that utilizes tokenized deposits for the purpose of trading and providing liquidity.Meanwhile, payments firm Mastercard announced that it was performing testing on its Multi Token Network in June. For its part, JPMorgan has also been a participant in Singapore’s Project Guardian, a collaborative initiative led by the Monetary Authority of Singapore in conjunction with the financial services sector, centered on asset tokenization.Bahrani partnershipThis latest collaboration follows hot on the heels of JPMorgan’s partnership with another Middle Eastern bank last month. Bank ABC, which is headquartered in Bahrain, became the first Middle Eastern bank to utilize JPMorgan’s Onyx Coin Systems for faster cross-border payments.That initiative also had the support of Bahrain’s central bank. At the time of the launch of the collaboration, Central Bank of Bahrain Governor Rasheed Al Maraj stated:”After working closely with JP Morgan and Bank ABC over the past two years to experiment with cross-border commercial transactions between Bahrain and the US, leveraging the JP Morgan Coin System, we are pleased to witness the soft launch of this innovative banking solution by a Bahraini-based bank.”

CoinEx Reveals Insights Into Recent Platform HackHong Kong crypto exchange CoinEx has issued a further update relative to the security breach that occurred on the platform last week resulting in one of the exchange’s hot wallets being compromised.Photo by FLY:D on UnsplashImmediate responseIn the immediate aftermath of the $70 million hack, CoinEx took action to safeguard user assets and initiate an investigation into the incident. It suspended all deposit and withdrawal services and executed an emergency shutdown of the hot wallet server. Following this, the company securely moved the remaining assets to cold storage, commencing the process of reconstructing and deploying a new wallet architecture.The firm also engaged in an investigation, spearheaded by its wallet and security teams, to ascertain the extent of the breach. Moreover, CoinEx claims to have proactively reached out to fellow exchanges to freeze any assets related to the attack.Haipo Yang, the Founder and CEO of CoinEx, conveyed his apologies to affected users through his personal X (formerly Twitter) account. He emphasized the team’s commitment to restoring services promptly and reassured users that their funds will remain secure.Following up on that commitment, CoinEx published an update on the hot wallet hack on September 15 to address these concerns individually.New wallet deploymentThe exchange expects to finalize wallet upgrades within the upcoming week, after which withdrawals will gradually be phased in, subject to security evaluations. The CoinEx team is currently working on developing and deploying an entirely new and robust wallet system capable of managing activities across 211 chains and 737 assets.The firm has outlined that each of its product lines operates independently, featuring its own risk control system. Consequently, the security incident that occurred on CoinEx will not affect the integrity of its other product lines.In its most recent update on Tuesday, the Hong Kong crypto exchange confirmed that 80% of its wallet system has now been reconstructed. It added that it has initiated preparations to enable the withdrawal system on the platform. It stated:”Details about the resumption of withdrawals, including specific dates, times, and arrangements, will be announced on the CoinEx website. Please stay updated on our announcements for the latest information.”Ongoing investigationRegarding the identity of the attacker, CoinEx has confirmed that the matter is currently under investigation. While some security firms have made attribution claims, the company is focusing primarily on deploying the new wallet architecture, restoring affected users and functionalities, and enhancing overall security.At the same time, the company has initiated communications with the hackers in a bid to proactively seek a mutually agreeable resolution. While the incident implicates the loss of a substantial amount of funds, the firm maintains that in the context of the overall business, the sum represents only a small percentage of total assets under its management.Exchange security remains a major challenge in the crypto sector, with hacks happening on an ongoing basis. Last week, Seychelles-headquartered peer-to-peer crypto platform Remitano acknowledged a $2.7 million hack. At the beginning of September, crypto gambling platform Stake was reported to have suffered a $41 million hack.