Mysterious Hong Kong entity emerges as largest new holder of BlackRock’s Bitcoin ETF

Bahrani Bank Launches JPM Coin PaymentsBank ABC, headquartered in Bahrain, has become the first Middle Eastern bank to offer faster cross-border payment solutions for corporate and financial institutions using JP Morgan’s Onyx Coin Systems.Photo by Satheesh Cholakkal on PexelsCentral bank collaborationThis blockchain-based permissioned system, housed within JP Morgan’s Onyx platform, aims to enhance the efficiency and speed of international payments. The introduction of the blockchain-based payment service by Bank ABC follows a closely coordinated effort with the Central Bank of Bahrain (CBB), demonstrative of the interest of both institutions in embracing cutting-edge financial technology.Central Bank of Bahrain Governor Rasheed Al Maraj praised the collaboration, stating:“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.”Embracing innovation and digitalizationThe initiative aligns with the CBB’s strategic vision to embrace innovation and digitalize the kingdom’s financial services sector. By eliminating inefficiencies in traditional cross-border payment systems, this solution aims to facilitate trade between Bahrain and the US, with the ultimate aim of stimulating greater economic activity.Bahrain has been demonstrating more recently a desire to move away from its oil-based economy and embrace blockchain technology as part of that diversification. Bank ABC Group CEO Sael Al Waary stated that it was playing a role as a key enabler of Bahrain’s vision for a digital economy.He expressed gratitude to the Central Bank of Bahrain for its support and leadership and recognized JP Morgan for its pivotal role in advancing cross-border payments. The bank’s CEO outlined the organization’s commitment to introducing innovative products and highlighted the benefits of the JP Morgan Coin Systems service. He explained:“Offering high-value cross-border payments via the JP Morgan Coin Systems service allows us to reduce traditional settlement periods considerably and be more cost-effective for our clients.”Naveen Mallela, Global Head of Onyx Coin Systems at JP Morgan, underscored the significance of the launch, stating: “Bank ABC has been one of the earliest adopters of the JPM Coin offering, and we are delighted to launch the first-of-its-kind commercial payment offering between JP Morgan and Bank ABC using distributed ledger rails.”Enabling cross-border transactionsThe service enables cross-border commercial transactions to occur instantly and with certainty between Bahrain and US corridors. While initially launched with USD and specific locations, the roadmap includes plans for additional locations and currencies, with the euro notably on the horizon. Furthermore, the introduction of programmable payment offerings will empower mutual corporate clients to execute event-driven and automated payouts, enhancing dynamic and real-time treasury management.The launch of this service is a pivotal step in Bank ABC’s digital transformation program, aimed at future-proofing and diversifying the bank’s offerings with the latest banking innovations. The initiative reinforces the bank’s undertaking to provide cutting-edge financial services while contributing to the evolution of Bahrain’s digital economy.As financial institutions across the world continue to explore the potential of blockchain and distributed ledger technology, Bank ABC’s collaboration with JP Morgan sets an example for others in the Middle East to evaluate.

Korean Crypto Exchange Alliance Reveals Standardized Regulation GuidelinesThe Digital Asset eXchagne Alliance (DAXA), consisting of five leading cryptocurrency exchanges in South Korea, today revealed standardized regulation guidelines, according to a report by news media The Asia Business Daily.Photo by Nick Fewings on UnsplashStandardized guidelinesTwo important documents — the standardized internal control framework and the code of conduct and ethics — were released by DAXA today. These documents were developed based on data provided by financial investment firms and member exchanges. Reviewed by DAXA members and advisors, this documentation represents a significant milestone as it is the first of its kind to address the unique characteristics of the crypto industry. The establishment of unified rules and regulations through the collaborative efforts of the member exchanges stands as a commendable achievement.Internal control frameworkThe internal control framework consists of five parts, encompassing a total of 68 articles. These parts cover general provisions; governance of virtual asset service providers (VASPs); organization and standards for internal control; compliance officers and internal control system management; and compliance details.Code of ethicsThe code of conduct and ethics comprises five chapters with 24 articles. These chapters focus on general provisions, customer ethics, employee ethics, corporate management ethics, and societal ethics.DAXA Vice Chairman Kim Jae-jin expressed optimism that these guidelines will serve as a valuable reference for all VASPs, fostering the development of a fair, trustworthy, and globally competitive crypto market.DAXA’s websiteLast month marked the launch of DAXA’s official website, and their YouTube channel has been active since January. The alliance is made up of five member exchanges: Gopax, Bithumb, Upbit, Korbit, and Coinone. At the helm of the alliance is Chairman Lee Sirgoo, who concurrently serves as CEO of Dunamu — the company operating Upbit, the largest cryptocurrency exchange in the nation.

China’s Jiangsu Province Integrates Digital Yuan Into Education SystemChina has taken a raft of measures to try to build momentum in its digital currency, the digital yuan or e-CNY, with the latest step being an expansion into the education system in Jiangsu Province.Photo by Kimberly Farmer on UnsplashChina’s digital yuan is a legal tender fully backed by the People’s Bank of China (PBOC) and pegged to the renminbi. Unlike most cryptocurrencies, it is not decentralized or anonymous but is monitored by the PBOC. While adoption has been slow, China has been first off the blocks in developing a central bank digital currency (CBDC) to the point of some level of active use by comparison with its international peers.Enforcing a payments use caseJiangsu Province will attempt to establish the use of the digital yuan in its education system by the end of 2025, according to the Jiangsu Education Department. By the end of the year, students studying within the province are likely to be paying tuition fees using the digital currency. The pilot plan that Jiangsu administrators within the province’s Education Department have put together also aims to establish a means through which examination registration fees will be paid in digital yuan, while scholarships will be received in the digital currency.Zhou Maohua, a researcher with Beijing-headquartered Everbright Bank, told China Daily that it is imperative that more users are registered and go on to actively use the digital yuan to further its development.“The establishment of infrastructure for the digital yuan should be further accelerated,” said Maohua. “Its software and hardware must be upgraded to improve user experience. The security and reliability of the system must also be strengthened,” he added.Over the course of the past three months, four million digital yuan accounts have been opened by ordinary citizens within Jiangsu Province. Total e-CNY transactions have reached a level in excess of 200 billion yuan ($29 billion).Multiple initiativesIn April, the administrators of the city of Changshu, which is situated within Jiangsu Province, announced that it was gearing up to commence paying state employees within the city in digital yuan. Around the same time, officials within the city of Xuzhou, also located within Jiangsu Province, announced that they were in the process of publishing a pilot scheme which will set out a means for promoting China’s e-CNY digital currency.If that was enough in proving Jiangsu’s commitment to furthering the development of the e-CNY, another Jiangsu Province city, Suzhou, was one of the first locations in China to run a digital yuan pilot scheme in April 2020.Earlier this month, it was revealed that the French international banking group, BNP Paribas, had partnered with the BOC in enabling an initiative to promote the use of the digital yuan among its corporate clients.China is working with other countries on a Multiple CBDC Bridge project to explore the feasibility of cross-border fund transfers among different currencies. Launching its own CBDC for cross-border transfers may allow China to reduce its reliance on the US dollar and increase its influence over global trade and monetary policy.