Taiwan weighs up CBDC following feasibility study completion

eToro, M2 secure licenses bolstering UAE crypto developmenteToro, the retail and social trading platform, has successfully secured a coveted license from the Abu Dhabi Global Market (ADGM) in the United Arab Emirates (UAE). Additionally, virtual asset firm M2 has become a fully regulated Multilateral Trading Facility (MTF) and custodian through the ADGM.Photo by Mitul Grover on UnsplasheToro global expansionIn eToro’s case, the Financial Services Permission (FSP) license empowers it to operate as a broker in securities, derivatives and crypto assets within the UAE. The firm announced its regulatory success on Monday, the first day of Abu Dhabi Finance Week.eToro’s foray into the UAE market is part of its broader global expansion plan. With an eye on the potential of the UAE’s investor base, eToro seeks to extend its business beyond just providing trading opportunities. The company is committed to fostering financial education and encouraging community engagement among its users in the region.The latest issuance of a full license by the ADGM is the culmination of an initial in-principle authorization obtained over a year ago, showcasing a deliberate approach to regulatory compliance. eToro Founder and CEO Yoni Assia commented on the development in a press release, stating:“The approval of our operating license by ADGM is a key milestone in our continued global expansion. Abu Dhabi is increasingly recognized as a growing fintech hub, and we are excited to become part of this flourishing ecosystem.”M2 primed to onboard retail and institutional clientsSimultaneously, cryptocurrency exchange M2 has also been recognized by the ADGM, earning the status of a fully regulated Multilateral Trading Facility and custodian. M2 is now permitted by this license to serve both retail and institutional clients in the UAE, offering services such as crypto custody, UAE dirham-based Bitcoin and Ethereum trading and on/off-ramp services for the dirham (AED).Stefan Kimmel, CEO of M2, considers the timing of this license as particularly advantageous, coinciding with a renewed positive sentiment among investors. M2’s range of services in the UAE market is designed for diverse client groups, addressing the needs of both retail and institutional investors.Official platform launchIn rolling out its service offering in Abu Dhabi, the trading and custodial services platform has partnered with Abu Dhabi Commercial Bank (ADCB). Commencing this week, both retail and institutional clients within the UAE can now register on the M2 platform.The firm will offer custody and trading of digital assets while also extending yield-bearing products of up to 10.5% on BTC and ETH.The strategic geographical location, business-friendly environment and forward-thinking regulatory approach make the UAE an attractive destination for international crypto players seeking operational licenses. Earlier this month, the ADGM’s registration authority introduced comprehensive regulations, particularly focusing on Web3 organizations. The regulatory framework has focused in particular on distributed ledger technology (DLT)-oriented foundations and decentralized autonomous organizations (DAOs).The successful acquisition of ADGM licenses by eToro and M2 marks a significant milestone for both entities. As these platforms introduce their innovative services to the region, the UAE is poised to play a central role in shaping the future of cryptocurrency.

UBS Pioneers Tokenized Money Market Fund on EthereumUnderscoring what is very much an ever-evolving financial sector, large-scale investment manager UBS Asset Management has taken a pioneering step by launching a pilot project for a tokenized money market fund on the Ethereum blockchain.Photo by Bastian Riccardi on UnsplashBlurring the lines of TradFiThe initiative, announced by UBS in Singapore on Monday, promises to streamline the traditionally cumbersome processes of fund subscriptions and redemptions. Additionally it highlights the increasing integration of blockchain technology into traditional finance, effectively blurring the boundaries between the two worlds.The UBS project aligns with Singapore’s Variable Capital Company (VCC) fund structure and falls within the scope of Project Guardian, championed by the Monetary Authority of Singapore (MAS).Structured in this way, UBS believes that the project design lends itself to the ability to bring various forms of real-world assets (RWAs) to the blockchain. Furthermore, it establishes a favorable rapport with regulatory authorities in Singapore, a jurisdiction known for its forward-thinking, crypto-friendly financial regulatory environment.Public blockchain useThis new offering relies upon a smart contract that’s run on the Ethereum public blockchain, encapsulating the money market fund. Through this smart contract use, the subscription and redemption processes can be simplified. That will represent a major change, given that those processes have traditionally been laden with paperwork and delays.In the first iteration, large TradFi firms like UBS considered the use of private blockchains but as Matt Hougan, the CIO of crypto asset manager Bitwise, pointed out, this particular initiative is indicative of a shift towards public blockchains. Hougan stated:“Remember when TradFi projects were built on private blockchains? They are all being built on Ethereum today. Progress.”RWA tokenization potentialThe tokenization of real-world assets has the potential to revolutionize digital asset investments by offering transparency, security, and trust. It not only paves the way for a better understanding of digital assets but also accelerates their adoption. UBS’s pilot project represents another significant move in this direction.With increasing support from regulatory bodies like MAS, the fusion of digital assets with traditional financial structures is likely to witness a myriad of large-scale implementations in the not too distant future.UBS TokenizeUBS harnessed the power of its in-house tokenization service, UBS Tokenize, to seamlessly conduct the controlled pilot of the tokenized money market fund. The initiative falls squarely within the purview of UBS’s global distributed ledger technology strategy, which aims to elevate fund distribution and issuance to greater levels of efficiency by leveraging the capabilities of both private and public blockchains.UBS Tokenize also featured in a separate initiative earlier this year in Hong Kong, facilitating the issuance of digital structured notes on the Ethereum blockchain via the Bank of China Investment (BOCI).The momentum behind the tokenization of real-world assets has been building in recent years, with various protocols focusing on real-world assets consistently outperforming other sub-sectors of decentralized finance.

JD.com, one of China’s largest business-to-consumer (B2C) online retailers, is understood to have registered “JCOIN” and “JOYCOIN” ahead of Hong Kong’s Stablecoins Ordinance going live on Aug. 1. According to a report published by the Hong Kong Economic Times, in its trademark registration application, JD.com described the services associated with the two brand names as implicating the provision of electronic fund transfers and cryptocurrency-related financial transactions achieved via blockchain technology.Photo by tommao wang on UnsplashHKD-pegged stablecoinThe trademark registrations were filed by JD.com's subsidiary company, JD Coinlink Technology. The company was announced as a participant in the Hong Kong Monetary Authority’s (HKMA) stablecoin issuer sandbox last year. Around that timeframe, it also unveiled plans to launch a stablecoin pegged to the Hong Kong dollar (HKD).  That move was followed by British multinational bank Standard Chartered in February, with it announcing the launch of a HKD-pegged stablecoin in Hong Kong alongside local partners. Standard Chartered and its partners have also been participants in Hong Kong’s stablecoin issuer sandbox. Liu Peng, CEO of JD Coinlink Technology, provided an update in May, outlining that its stablecoin was entering phase two of sandbox testing. He stated that he hopes the project “contributes to payment efficiency not only within JD’s ecosystem but also for businesses and individuals worldwide.” On its website, JD Coinlink Technology describes its “JINGDONG Stablecoin” as a stablecoin backed 1:1 by the Hong Kong dollar, with the goal of meeting regulatory compliance and becoming “one of the leading digital currencies for businesses and individuals seeking for efficient, cost-effective, and secure payment solutions.” In a press briefing in Beijing in June, Peng outlined that the company was making preparations to apply for stablecoin issuer licensing in several markets. The JD Coinlink Technology CEO asserted that stablecoins “can reduce payment costs by 90% and complete transactions within 10 seconds.”  Ant Group, a subsidiary of another Chinese e-commerce giant, Alibaba, has also been following a similar track, preparing to apply for stablecoin licensing in both Hong Kong and Singapore. Push for yuan-pegged stablecoinsBoth Ant Group and JD.com have been lobbying the authorities in China for permission to issue a yuan-pegged stablecoin. Mainland China continues to impose a prohibition on crypto trading and mining, although more recently there have been signs that it may be considering accommodating stablecoins. Behind closed doors, it is understood that JD.com has urged officials at the People’s Bank of China to permit the issuance of offshore yuan-pegged stablecoins as a means to promote use of the yuan internationally and to enable more efficient cross-border trade. Hong Kong is perceived by many commentators as a testing ground for the digital assets sector in China. However, regulators in the Chinese autonomous territory have expressed caution around approving fiat-backed stablecoins tied to foreign currencies, noting that such issuances would require prior “discussions with the relevant authorities.” With Hong Kong’s Stablecoins Ordinance going live on Aug. 1, the HKMA published further guidelines for licensed stablecoin issuers on July 29. The regulator disclosed that it intends to publish a public registry of licensed stablecoin issuers for the benefit of the general public.