Phemex introduces Lending Protocol and Pulse Season 3

Siam Commercial Bank (SCB), Thailand’s oldest bank and fourth-largest lender, has launched a cross-border payments service which depends upon the use of stablecoins.  The project is the culmination of a collaboration between SCB, SCB 10X, the disruptive technology investment arm of the SCBX Group, payment solutions provider Lightnet and blockchain development platform Fireblocks. It has successfully completed its testing phase within the Bank of Thailand’s regulatory sandbox, moving forward to the commercialization phase. According to Indian news portal Business News This Week, SCB launched the cross-border payments solution on October 16 in an effort to get out ahead of its TradFi peers relative to banking and financial services innovation.Photo by allPhoto Bangkok on PexelsFaster with lower costsThe service will enable 24/7 transfers on an international basis for the bank’s retail users. In accessing the service, users may use local currency to make transactions. Ordinarily cross-border payments implicate a number of steps in order to complete clearance, including the need to effect a currency conversion. Furthermore, banks need to maintain nostro/vostro accounts with foreign banks to complete such transfers.  In this instance, the bank is claiming that transactions using the service will be much faster than existing cross-border transfer options. The clearance and settlement process will be far more efficient in terms of the time required and the liquidity requirements. Pre-funding required in the legacy process has been eliminated, reducing capital requirements, while operational costs have also been reduced. SCB’s First Executive Vice President and Head of Digital Juristic and Payment, Thanawatn Kittisuwan, commented on the development, stating: “By integrating blockchain technology, the project promises a more efficient, reliable, and accessible solution for cross-border transactions. By leveraging blockchain technology and stablecoins, we are making cross-border remittances more efficient, reliable, and accessible for everyone. SCB has a long-standing tradition of embracing innovative technologies to enhance our financial services. This latest collaboration with Lightnet and Fireblocks builds upon SCB’s history of pioneering fintech solutions. ” Improved customer experienceLightnet CEO Tribodi Arunanondchai suggested that the new service will provide significant improvements to customers’ experience in cross-border money transfer. He added that the service “promotes financial inclusion as there is a lower capital requirement per transaction,” while strengthening Thailand’s position as an ASEAN (Association of Southeast Asian Nations) financial hub.  SCB and Lightnet first partnered in 2020. At that point, the duo envisaged that there was scope to cooperate in order to facilitate payment processing and frictionless real-time remittances to Thailand from any point overseas with low fees. Lightnet relies upon the Velo Protocol to enable its remittance services. Back in 2022 the firm received a $50 million commitment from LDA Capital, with Lightnet earmarking the funding to boost cross-border payments over the Velo protocol. For its part SCB has demonstrated its interest in crypto beyond this Lightnet collaboration. In 2023 the bank struck a deal with South Korean crypto venture capital firm Hashed, with the objective of pooling resources and researching and exploring how best to deploy any research outcomes relative to the company’s affiliates. The bank has also been involved in developing an application for Thailand’s central bank digital currency, the digital baht.

Kyrgyzstani President Embraces Hydro-Powered Crypto MiningIn a move that signals the Republic of Kyrgyzstan’s growing interest in cryptocurrency mining, President Sadyr Japarov has given the green light to establish a crypto mining farm at a hydroelectric power plant within the Central Asian country.The ambitious project, set to be built at the Kambar-Ata-2 hydropower plant, has been allocated a budget of up to $20 million, as reported by Kyrgyzstan’s national news agency, Kabar, on Thursday.Photo by Collab Media on PexelsMore efficient use of powerThe primary motivation behind this endeavor is to address energy losses linked to non-utilized power from the Kambar-Ata-2 plant, which has been operational since 2010. According to President Japarov, approximately 6.8 billion kilowatt-hours (kWh) of energy have been wasted due to this issue. By harnessing the excess energy for cryptocurrency mining, the Kyrgyz government aims to optimize resource usage and bolster the country’s budget.President Japarov emphasized that the profits generated from the mining farm would directly benefit the people, particularly the power engineers who are responsible for the plant’s operations. He asserted that the earnings would be meticulously controlled and allocated, with complete automation and oversight.Energy grid challengesHowever, this recent decision appears to contradict the state of emergency announced by President Japarov in Kyrgyzstan’s energy sector on July 24. The emergency status, which will be in effect from August 1, 2023, until December 31, 2026, is attributed to climate challenges, insufficient water inflow into the Naryn River basin, and a lack of generating capacity due to escalating energy consumption.Despite these apparent contradictions, President Japarov affirmed that crypto mining at the hydro plant would be subject to the highest tariff in Kyrgyzstan, amounting to approximately 5 Kyrgyz soms ($0.057) per kW.As early as March 2022, Kyrgyz lawmaker Karim Khanjeza urged the government to legalize the cryptocurrency industry during a parliamentary committee meeting, citing the rapid expansion of the crypto space. Although Kyrgyzstan introduced some regulations for crypto exchanges in 2021, it has not yet enacted specific laws governing cryptocurrencies.The integration of hydro-powered crypto mining presents both opportunities and challenges for Kyrgyzstan. If executed strategically, the venture could harness underutilized energy to boost the national economy and provide benefits to the people.Learning from KazakhstanThat said, the Central Asian country would do well to pay heed to events that unfolded in neighboring Kazakhstan relative to crypto mining over the course of the last few years. Following a major crackdown on crypto mining activity in China, many miners upped and moved their operations to Kazakhstan. That sudden unplanned and unregulated upsurge destabilized the country’s power grid, forcing the government to crack down on mining. It has since regulated the activity in order to accommodate it without it having a detrimental effect on the energy grid.As developments unfold, Kyrgyzstan’s foray into cryptocurrency mining will undoubtedly be closely monitored by industry observers and stakeholders. President Japarov’s vision to distribute the earnings to ordinary citizens brings an element of promise to the project. Crypto mining can be a positive development for the country, leading to more efficient energy use, so long as the authorities plan accordingly.

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.