MUFG pushes into tokenized finance as Japan enters a new political chapter

Recognition of Donald Trump’s victory in the U.S. presidential election on Nov. 6 has led to many crypto proponents in Asia foreseeing a positive outcome for crypto within the Asian region, and globally.Photo by Kevin Lanceplaine on UnsplashBright future for cryptoAccording to a report published by the South China Morning Post (SCMP), crypto proponents in China are expectant of a bright future for crypto both on the Chinese mainland and in Hong Kong. The mindset seems to be that a pro-crypto stance in the U.S. will lead to other jurisdictions taking a similar approach. HashKey CEO Livio Weng expressed such a view, stating:“Trump’s pro-crypto stance is expected not only to invigorate the US virtual-asset industry, but also to encourage Hong Kong to further relax its own virtual-asset policies in its quest to become a global Web3 hub.”  Prior to being elected, Trump had promised to fire Gary Gensler, who as Chair of the Securities and Exchange Commission (SEC) has pursued a strategy of regulation by enforcement, a course of action that has been broadly criticized by crypto market participants in the United States. Ripple CEO Brad Garlinghouse wasted no time in calling on Trump to act, and to fire Gensler. Influencing regulatory attitudesThere seems to be a consensus among commentators that the regulatory approach to crypto in the U.S. is going to become crypto-friendly. Crypto analyst Miles Deutscher suggests that “a Trump victory is a WIN for US tech innovation, as it would solidify [the United States’] status as a crypto powerhouse.” Weng believes that “this shift could also positively influence regulatory attitudes toward virtual assets in mainland China.” That view is mirrored in South Korea by KP Jang, head of Xangle Research. Jang asserts that “if Trump implements bold virtual asset policies while improving existing regulations, it is expected to accelerate regulatory reforms in Korea as well.” Sumit Gupta, CEO and co-founder of India’s largest crypto exchange, CoinDCX, outlined on X that Trump’s victory is a pivotal moment for global crypto, adding:”The direct effects of Trump’s policies might not alter India’s regulatory environment right away. However, global sentiment and investor behaviour will be influenced, eventually reaching India.” The CoinDCX CEO believes that should Trump now appoint regulatory leadership that’s crypto-positive, any resultant crypto regulatory framework adopted by the U.S. could become a blueprint for use by other nations. Gupta identified further potential upside insofar as the implementation of positive crypto policies by Trump would lead to a more attractive environment for crypto, “potentially opening up enhanced funding opportunities and partnerships for Indian startups as investors seek global growth.” Bitcoin price surgeAt the time of writing, the Bitcoin unit price is up 0.64% over the course of the past 24 hours, at $74,884. American business news channel CNBC reported that Bitcoin could reach $100,000 before Trump even takes office.  Matthew Hougan, chief investment officer (CIO) at crypto asset fund manager Bitwise, said that Trump’s election victory could herald in a “golden age of crypto,” with a friendlier regulatory environment leading to greater institutional investment and mainstream adoption.

China and Singapore collaborate on cross-border digital yuan transactionsTaking yet another stride toward globalizing the e-CNY currency, China’s central bank has unveiled a pilot program in collaboration with its Singaporean counterpart, enabling tourists from both countries to use the digital yuan for transactions when traveling.Photo by Eric Prouzet on UnsplashSeries of initiativesThis move is part of a series of initiatives unveiled by the two governments during a Joint Council for Bilateral Cooperation event which was held in Tianjin, China, last week. Among the announced measures is a mutual 30-day visa-free travel arrangement, one of 24 deals signed to strengthen bilateral ties between China and Singapore.The Monetary Authority of Singapore (MAS) disclosed in a statement that it had collaborated with the Digital Currency Institute of the People’s Bank of China (PBOC) for this initiative. The program aims to facilitate the use of the digital version of the Chinese currency for tourist spending, enhancing convenience for travelers during their overseas trips. While specific details about the scheme were not disclosed, it represents a collaborative effort to promote cross-border transactions using the digital yuan.Internationalizing the digital yuanIn its reporting on the announcement, the South China Morning Post (SCMP) pointed to the views of Richard Turrin, an independent financial technology consultant and author of “Cashless: China’s Digital Currency Revolution.” Turrin sees the digital yuan collaboration as a promising opportunity for cross-border retail use. He suggests that starting with small transactions, such as those by tourists, could pave the way for broader applications in trade and other high-value scenarios.In an editorial back in November, the SCMP referred to the birth of the Petro-Yuan, speculating that the era of the Petro-Dollar is coming to an end. “In a global political economy long dominated by the petrodollar, this could be the beginning of a seismic shift,” the editorial stated. The internationalization of the e-CNY will likely be a key aspect of that overall monetary sea change.Over 5 years in developmentChina initiated digital yuan testing in 2019, and although an official launch timetable has not been confirmed, adoption has accelerated recently. Former PBOC governor Yi Gang reported that total e-CNY transactions reached 950 million yuan ($133 million) in June, with a cumulative value of 1.8 trillion yuan compared to 100 billion yuan in August 2022. This indicates a substantial increase in digital yuan transactions.The momentum extends beyond mainland China, with Beijing exploring CBDC usage internationally. The mBridge trial, completed last year, involved multiple countries using central bank digital currencies to settle trades, including Hong Kong, Thailand and the United Arab Emirates.In June, authorities in China’s resort city of Sanya introduced e-CNY ATMs so that foreign visitors could buy the digital yuan and use it during their time in China. Another initiative aims to encourage further use of the digital currency within the Chinese autonomous territory of Hong Kong. In July, the Hong Kong arm of the Bank of China rolled out a digital yuan shopping festival in Hong Kong, allowing visitors to Hong Kong from mainland China to make purchases using the digital yuan.

Leading crypto exchange OKX has announced the seamless integration of Uniswap Labs' application programming interface (API) into its decentralized exchange (DEX). The objective of the Uniswap addition is to usher in an era of gas-free trading through its innovative feature called "Snap” for OKX service users. Snap trading modeThe company made the announcement by way of a PR Newswire press release on Feb. 29. OKX asserts that Uniswap is one of the most trusted names in DeFi. As part of the integration, the Snap trading mode will be included as a feature on OKX DEX, with the objective of aggregating Uniswap’s liquidity.The feature operates directly on the OKX DEX interface by way of the UniswapX protocol. UniswapX is an immutable smart contract built with the intention to be fully permissionless. The contract cannot be modified or paused by anyone, including Uniswap Labs. Liquidity providers pay the feeIn explaining away the technology, Jason Lau, the chief innovation officer at OKX told Cointelegraph the mechanics behind the no-fee swaps. Lau unveiled a novel model wherein liquidity providers absorb transaction fees on behalf of users. He asserted that this approach not only enhances convenience but also facilitates cost savings for traders. Lau elaborated further, stating: “By agreeing to a price and signing a transaction off-chain, then settling the transaction on-chain, users end up paying no gas fees because the liquidity providers will pay the fee on the user’s behalf.”Photo by Shubham Dhage on UnsplashGoing beyond trading fee reductionAnticipating a positive response from DeFi enthusiasts, Lau highlighted additional features that go beyond transaction fee savings. These include the elimination of slippages, maximum extractable value (MEV) bot attacks and transaction failures, addressing prevalent concerns within the DeFi space.In tandem with the gas-free trading initiative, OKX announced a seamless integration for its wallet users within the Uniswap interface, courtesy of the Multi-Injected Provider Discovery upgrade on Ethereum, based on Ethereum Improvement Proposal (EIP)-6963. This enhancement extends to all browser extension wallets, enabling OKX wallet users to seamlessly connect with Uniswap, facilitating activities such as cryptocurrency swapping, NFT trading, liquidity pool participation and decentralized application (dApp) development. Positioning this integration as a pivotal addition to their ecosystem, Lau reiterated OKX's commitment to broadening user access to diverse on-chain use cases. He expressed enthusiasm for ongoing development initiatives and urged users to actively contribute feedback for further enhancements. The crypto exchange platform achieved further technical progress recently, with the addition of support for atomicals, runes, doginals and stamps to its Web3 wallet. Providing further detail on these additions last month, the company said that they were part of a "first-to-market" initiative relative to Bitcoin NFTs. Alongside technical advancements like these, earlier this week it emerged that the company was further advancing its market expansion strategy, through the launch of OKX TR, its Turkish platform. With OKX pioneering gas-free trading and bolstering user accessibility to decentralized finance, the convergence of traditional finance and blockchain technology accelerates, indicating an ongoing transformative shift in the crypto space.