USDT stablecoin receives full regulatory approval in Abu Dhabi

German multinational investment bank Deutsche Bank, is collaborating with Singapore's central bank on asset tokenization.  Project GuardianThe company announced on May 14 via a press release that it has joined the Monetary Authority of Singapore’s (MAS) Project Guardian. Project Guardian is an international collaboration between a number of market regulators, led by MAS. Other participants in the initiative include the UK’s Financial Conduct Authority (FCA), Japan’s Financial Services Agency (FSA) and Switzerland’s Financial Market Supervisory Authority (FINMA). The project focuses on asset tokenization relative to wholesale funding markets and decentralized finance (DeFi) applications.Photo by Mariia Shalabaieva on UnsplashThe bank outlined how it intends to participate as part of the collaboration, stating: “As part of the asset and wealth management workstream, the bank will test an open architecture and interoperable blockchain platform to service tokenized and digital funds. It will then propose protocol standards and identify best practice to contribute to industry progress.” The bank’s participation in the project will be headed up by its Asia Pacific (APAC) head of securities and technology, Boon-Hiong Chan. Anand Rengarajan, Head of Securities Services for Asia Pacific and the Middle East, commented on the development, stating:“Contributing to Project Guardian will bolster our efforts to help shape the new frontier of asset servicing, and strongly position us to contribute to industry progress, and not only anticipate our clients’ needs but exceed their expectations.”  Memento Blockchain partnershipDeutsche Bank outlined that it intends to work closely with Memento Blockchain on the project. In fact, it has an existing ongoing collaboration in place with Memento, the developer of a decentralized asset management platform. Memento has developed multi asset swap products and it is currently working towards the development of a zero knowledge layer-2 solution. The duo have worked together over the course of the past two years. A proof-of-concept known as Project DAMA (Digital Assets Management Access) emerged from that partnership. That body of work will be extended into DAMA 2.  Memento Blockchain is the software developer behind the Domani Protocol. It stated on X that more technical details relative to the collaboration will be released in the coming weeks. It added that the collaboration will also involve Interop Labs, the developer of the Axelar Network, the programmable Web3 interoperability platform.  Earlier this year, the Axelar Foundation established a partnership with payment technology firm Ripple Labs with a view towards tokenizing real world assets (RWAs) on top of the XRP Ledger, enabled via Axelar. Axelar co-founder and Interop Labs CEO Sergey Gorbunov told Cointelegraph that “it’s now clear that secure blockchain interoperability is required to unlock the trillion-dollar potential in asset tokenization.” Gorbunov added that “Deutsche Bank and Project Guardian are leading innovation toward establishing the open systems that will enable this technology.” He highlighted the relevance of the Axelar Network in that endeavor, suggesting that “Axelar is critical infrastructure for institutional adoption."

Chainlink, a prominent decentralized oracle network, has partnered with the Abu Dhabi Global Market (ADGM), a free zone and international financial center located on Al Maryah Island in Abu Dhabi in the United Arab Emirates (UAE), with a view towards further developing tokenization frameworks.Photo by Shubham Dhage on UnsplashCompliant tokenization frameworksAccording to an announcement on the ADGM website, the international financial center signed a memorandum of understanding (MOU) with Chainlink. It claimed that the collaboration marks “a major step in advancing compliant tokenisation frameworks.” Chainlink provides a suite of services. Central to that is the delivery of real-world data feeds into blockchain networks. ADGM believes that through the partnership, projects located within the free zone will be able to access this technology, while the ADGM’s Registration Authority will ensure regulatory compliance. The CEO of the ADGM Registration Authority, Hamad Sayah Al Mazrouei, said that the strategic alliance is a significant step towards ADGM leadership in blockchain innovation. He added: “By collaborating with Chainlink, we are aiming to set a global benchmark that spearheads transparency, security, and trust across the blockchain space.” The collaboration includes plans to host events and workshops aimed at educating the blockchain sector within the UAE. The two parties also aspire to the initiative, sparking greater dialogue on regulatory matters relative to blockchain, artificial intelligence and other emerging technologies. Global collaborationsThis is the latest in a long list of collaborations that Chainlink has entered into, relative to asset tokenization. In October, it partnered with Singapore’s DigiFT, an exchange dedicated to tokenized real-world assets (RWAs). The following month, it completed a pilot program alongside financial messaging service SWIFT and UBS Asset Management under the umbrella of the Monetary Authority of Singapore’s (MAS) Project Guardian. The project concerned itself with the settlement of tokenized funds. Earlier in 2024, Chainlink partnered with U.S. financial market infrastructure firm DTCC on the Smart NAV pilot project. The initiative centered on the creation and issuance of tokenized funds, counting JPMorgan, State Street, BNY Mellon, Invesco and Franklin Templeton among its participants. In the UAE, Chainlink has been added as a member of the Digital Asset Lab of one of the country’s largest banking groups, Emirates NBD. For its part, the ADGM has also been on the front foot with regard to tokenization initiatives. Its Regulatory Authority has established a regulatory framework with regard to asset tokenization, with an emphasis on investor protection. In October of last year, RWA tokenization platform Realize launched the financial center’s first tokenized U.S. treasury bill fund. At the time, the ADGM said that the development highlighted an objective for the region in becoming the global market leader where RWA tokenization is concerned. The ADGM began operations in 2015 with its own legal system. As of the end of 2024, the financial center hosted 134 fund and asset managers. Market maker and Web3 investment firm DWF Labs moved its headquarters from Singapore to Abu Dhabi’s ADGM at the end of last year, citing the goal of wanting to expand tokenized RWA-based projects as one of the reasons for the move.

Hong Kong is gearing up for the potential approval and implementation of both bitcoin exchange-traded funds (ETFs) and stablecoin regulations in 2024, with further progress achieved through the first filing of a spot bitcoin ETF in the Chinese autonomous territory.Photo by André François McKenzie on UnsplashHarvest Fund filesHarvest Fund (HFM), a major asset manager based in China, has taken the lead by filing for a spot bitcoin ETF with the Hong Kong Securities and Futures Commission (SFA), as reported by Tencent News. While details on the Harvest Fund bitcoin ETF remain limited, the company is hoping for its debut on or after the Lunar New Year holiday, which lands on Feb. 10. Reports suggest that Hong Kong's regulatory body may follow a path similar to the U.S. SEC, approving multiple spot bitcoin ETF applications to ensure fair market access. Although Harvest Fund was the first to apply, other regional financial institutions have expressed interest in launching similar products within the year. Livio Weng, Chief Operating Officer of crypto exchange HashKey, revealed that approximately ten asset management firms are developing spot crypto ETFs for Hong Kong, with applications already submitted to the Hong Kong Securities Regulatory Commission. Earlier this month, Venture Smart Financial Holdings (VSFG) announced its plan to launch a spot bitcoin ETF within the first quarter of this year, contributing to the growing momentum. Stablecoin interestIn tandem with the push for spot crypto ETFs, there is a rising interest in stablecoins. Multiple Hong Kong companies, including Harvest Global Investments, RD Technologies and VSFG, are reportedly engaging in discussions with the Hong Kong Monetary Authority (HKMA) about potential stablecoin trials. These trials aim to explore use cases ahead of anticipated stablecoin regulations in Hong Kong. The HKMA's December consultation paper outlined licensing requirements for fiat-pegged stablecoins, positioning them as a bridge between traditional finance and crypto markets. Sean Lee, senior advisor and head of stablecoin at VSFG, told The Block that it is committed to applying for sandbox inclusion, along with consortium partners, to showcase the potential of programmable digital money while meeting prudential requirements. An HKMA spokesperson confirmed ongoing preparations for the imminent launch of the stablecoin sandbox arrangement. The key criterion for applicants is a demonstrated commitment to a reasonable plan for issuing fiat-reference stablecoins (FRS) in Hong Kong. FRS refers to fiat-reference stablecoins pegged to the value of a fiat currency and backed by a government-issued currency, aligning with the most common stablecoin model. Eddie Yue, CEO of the HKMA, highlighted the potential of stablecoins, stating they could serve as the interface between traditional finance and the virtual asset market. The parallel development of spot crypto ETFs and stablecoin regulations underscores Hong Kong's commitment to fostering digital assets while ensuring investor protection through effective market oversight. Crypto ETFs offer expanded access, while stablecoin trials enable controlled experimentation, establishing gateways between traditional finance and the emerging crypto sectors.