Chinese tech groups pause Hong Kong stablecoin plans amid regulatory scrutiny

NATIX Network, an open geospatial intelligence network built upon proprietary AI technology, has partnered with Southeast Asian superapp Grab to collaborate on autonomous driving technology and mapping. NATIX is a decentralized physical infrastructure network (DePIN) project that exists within the Solana ecosystem. Singapore-headquartered Grab offers a broad range of services via its app, including ride-hailing, package delivery and food delivery. Additionally, the firm offers mobile payments and insurance products.Photo by Afif Ramdhasuma on UnsplashReshaping the mapping industryIn a blog post published to its website on May 6, NATIX outlined that the strategic partnership has been formed with a view towards reshaping the mapping industry. It explained that the objective in this regard would be to combine Grab’s camera hardware and its AI-based map-making software stack with NATIX’s decentralized blockchain-powered mapping data.  Due to the nature of the services that it has offered in Southeast Asia since it was founded in 2012, Grab has, through necessity, become involved in mapping to enhance its service delivery. As a consequence, it has developed a suite of cameras including its KartaCam, a small action camera which can be mounted on bike helmets or car windshields, and a 360-degree standalone camera, KartaCam 2, with built-in sensors, AI image optimization and GPS capabilities. ‘Internet of Cameras’For its part, NATIX claims to have built the world’s largest on-street camera network. As part of the collaboration, NATIX will use Grab’s hardware and software technology to expand its “Internet of Cameras.” Posting on LinkedIn, GrabMaps set out its thoughts on the partnership, stating:”By combining GrabMaps' AI-powered mapping technology with NATIX's decentralised data network, we're enabling real-time, high-fidelity map updates across the globe. As part of this collaboration, NATIX will launch VX360, a device built on Grab's hardware platform that allows Tesla drivers to collect and share 360° vehicle imagery.” Appearing on the Unleashing DePIN podcast recently, NATIX Co-Founder and CEO Alireza Ghods outlined that NATIX will launch VX360, a proprietary device built by leveraging Grab’s existing hardware. He explained that this collaboration saves NATIX in terms of overall project cost and months of R&D, all of which enables it to get to market faster.VX360 enables Tesla drivers to capture and share 360-degree imagery.  Future potentialGhods spoke to the additional future potential that the collaboration holds: “The interesting part is that they have other types of devices as well, they have a dashcam, a 360 camera, and our plan is to definitely integrate all of this into our map making and data collection pipeline.” This is not the first partnership that GrabMaps has established related to mapping. Previously it formed collaborations with Microsoft’s Bing Maps, navigation and mapping app Mappls and location data specialist Loqate.  Ghods believes that NATIX can go one better than centralized mapping projects like TomTom and Google Street View. He told Cointelegraph that “a blockchain-based incentivization system provides better results in terms of frequency, participation, and coverage.” The NATIX co-founder asserted that such data can be gathered at a fraction of the cost via users’ devices.

BIS Collaborates with Singapore’s MAS, Bringing CBDC Pilot to a CloseThe Bank for International Settlements (BIS) has recently signified the culmination of Project Mariana, a pilot initiative centered on exploring the cross-border trading and settlement of wholesale central bank digital currencies (CBDCs).Photo by Pixabay on PexelsUpdating financial market infrastructureThe bank of central banks published the findings of the project on Thursday. Conceived in partnership with the Monetary Authority of Singapore (MAS) alongside the central banks of France and Switzerland, the endeavor could have profound implications for the future landscape of financial market infrastructure.Project Mariana, conducted under the patronage of the BIS, harnessed principles gathered from the emerging world of DeFi to probe the viability of employing automated market makers (AMMs) for CBDC trading and settlement.The project involved three key facets:DeFi Ingenuity: Project Mariana took inspiration and cues from the DeFi universe, particularly AAMs, to streamline foreign exchange trading and settlement. This approach was designed to bolster market efficiency while curtailing settlement risks.Cross-Border CBDC Transactions: Hypothetical wholesale versions of the Swiss franc, euro, and Singapore dollar in CBDC form were tested for cross-border trading and settlement. The central banks of France, Singapore, and Switzerland orchestrated simulated transactions via AAMs to gauge feasibility.Interoperability and Token Standards: The project showcased the practical application of a standardized technical token format offered by a public blockchain, enabling seamless interoperability across various currencies. This interoperability element played a pivotal role in facilitating cross-border CBDC transactions.While the project represents a significant move forward for the BIS in its consideration of decentralized technology, the organization is still mindful that these decentralized tools are in their infancy and in need of further scrutiny and experimentation.With that, the BIS Innovation Hub has outlined its intent to further explore the prospective advantages and obstacles associated with DeFi-infused solutions within pertinent use cases going forward.Proof of conceptWhile the BIS and participating central banks were happy with the outcome of the project, the exercise was still a proof of concept and doesn’t mean there will be any immediate adoption of CBDCs by the participating nations.Rather, it spotlights the potentials of CBDCs and DeFi in streamlining financial transactions and enhancing efficiency. Central banks can oversee wholesale CBDCs without necessarily exerting control over the underlying infrastructure, thereby furnishing commercial banks with a potent tool for instantaneous FX trading and settlement while simultaneously mitigating credit and settlement risks.The project also shone a spotlight on certain challenges, including the logistical intricacies arising from the 24/7 availability of wholesale CBDCs. Nevertheless, the manifold advantages of instant foreign exchange trading and settlement appear to outweigh these hurdles.Central bankers are likely to want a different outcome from the use of this technology by comparison with those who are currently knee-deep in building out DeFi. One commentator on X had a cynical take on the project, stating: “Intermediaries attempting to justify their existence in an age with bitcoin.”Notwithstanding that, FX is the largest financial market in the world, where $7.5 trillion in value is traded every day. To utilize DeFi technology in that context would likely be profound, regardless of the nature of the application of the technology.

Four Pillars for Success in Korean Security Token MarketOn Wednesday, blockchain experts in various fields gathered at the 2023 Blockchain Meetup Conference held in Seoul to discuss issues with security tokens and their outlook.©Pexels/Alesia KozikWhat attracted security token businesses’ attention at the meeting was a presentation by Jung Eui-heon from Lambda256, a subsidiary of Korean crypto exchange Upbit’s operator Dunamu. He shared four pillars for success in the Korean security token market.Security tokens gaining traction in KoreaSecurity tokens have been a trending topic in the Korean blockchain industry since the Korean Financial Services Commission (FSC) allowed the issuance and trading of security tokens last February. Furthermore, a 2022 report jointly published by Boston Consulting Group and Singaporean investment platform ADDX predicted that the total size of illiquid tokenized assets worldwide would reach $16 trillion by 2030.Against this backdrop, here are the four keys to successful security token projects that Jung outlined.Technology adaptationFirst, he emphasized the importance of adopting rapidly changing technology. To tackle the issue, he suggested teaming up with advanced tech companies for long-term collaboration. When choosing tech partners, companies should ensure they are sustainable, possess technological prowess, hold credibility on high volume transactions, and maintain the security level of financial institutions, Jung advised.Forging partnershipsThe second point he mentioned was the need to forge partnerships. The FSC’s February guideline requires the issuance and distribution of security tokens to be managed separately. This means that security token projects require collaboration between issuers, distributors, account managers, asset holders, and tech companies.New securities productsJung also noted that discovering new securities products is crucial. Partnering with existing fractional investing companies may help accelerate the security token project initially, but in the long run, enterprises will eventually have to create products in various fields such as gaming, movies, and entertainment.Token liquidityLastly, Jung underlined the token liquidity, which plays a crucial role in determining its prices. Issuers will need to find various distributors and vice versa. Securing liquidity requires the establishment of a technical standard that improves interoperability and compatibility, he highlighted.