Japan’s Mitsui Introduces Security Token Service to Sony Bank Customers

Bhutan Launches Blockchain-Based National ID SystemBhutan, the Buddhist kingdom nestled along the eastern edge of the Himalayas, has introduced a blockchain-based National Digital Identity (NDI) system.Photo by Aaron Santelices on UnsplashDisrupting the delivery of government servicesThe blockchain-based cryptographic identity platform has the potential to revolutionize the way Bhutanese citizens access government services and conduct digital transactions. According to local Bhutanese media source BBS, the system was launched last week, giving Bhutanese citizens the opportunity to download the Bhutan NDI application directly to their mobile devices.The user-friendly application promises a seamless experience, marked by a straightforward login process. Once registered, citizens will gain access to an array of government services. These will include construction approvals, land taxes, passport services, birth and death registration certificates, as well as Royal University of Bhutan degree certificates and various business-related services, all within the confines of their digital wallets.Digital wallet alongside digital identityNotably, the development could have major implications where the future use of digital currency in Bhutan is concerned. The NDI is not just a digital identity but a digital wallet.That means that users have the option to link their bank accounts to the NDI app, facilitating financial transactions without the need to switch between multiple apps. As of now, the Bank of Bhutan is the first financial institution to integrate with the NDI app.The Royal Monetary Authority of Bhutan (RMA) entered into a collaboration with enterprise blockchain firm Ripple Labs in September 2021 to develop and trial central bank digital currency (CBDC).Streamlining service deliveryThe GovTech Agency, the driving force behind the NDI project, envisions that this digital innovation will streamline and simplify the often arduous process of interacting with government agencies. Jigme Tenzing, the Acting Secretary of the GovTech Agency, explained the transformative potential, stating:“So, essentially what this enables for Bhutan is the ability to take almost all services and make them available online. This can virtually transform how services are provided in Bhutan. This is regarded as not only services that the government provides to citizens, but it can extend to even the private sector.”Some concerns have been raised with regard to this consolidation of personal information within a single platform. The GovTech Agency has responded by emphasizing the incorporation of biometric data, including fingerprint and facial recognition, to enhance identity verification and authentication. It feels that these measures are sufficient to safeguard data privacy.Crypto investmentThere had been little in the way of news emerging from the South Asian country where decentralized technology was concerned until earlier this year when it became known that the kingdom had been an investor on the failed crypto lender platforms of Celsius and BlockFi.It had done so through Druk Holdings and Investments (DHI), the commercial arm of the Royal Government of Bhutan. In May it emerged that DHI had entered into a partnership with Singapore-based Bitcoin mining firm Bitdeer, with the intention of developing green digital asset mining operations within the country.The National Digital Identity Act of Bhutan 2023 received Royal Assent in July, solidifying Bhutan’s status as the first sovereign nation to implement a comprehensive decentralized identity framework.

Aevo, the Singaporean crypto derivatives platform, is gearing up to broaden its ecosystem by allowing other protocols to build on its rollup infrastructure. ‘The future is modular’Currently, Aevo exchange is the sole application on its rollup, but according to Julian Koh, co-founder of Ribbon Finance, the platform's parent protocol, the intention is to open it up for other developers. On Tuesday, Koh retweeted a social media post by the company which stated “The future is modular,” adding the comment “build whatever.” Koh told The Block that "the primary angle here is we are currently built on our own rollup — but Aevo exchange is currently the only app on this rollup. Our plan is basically to open this up for other [developers] as well and build an ecosystem around our exchange."Photo by Shubham Dhage on UnsplashTransitioning to CelestiaAevo, specializing in options and derivatives trading, operates on its own Layer 2 network, built using the OP Stack and running atop the Ethereum blockchain. In a cost-saving initiative, the platform plans to transition to Celestia for storing transaction data in the near term. Celestia launched on mainnet last October with the aim of enhancing blockchain scalability. It’s a modular data availability network which securely scales relative to the number of network users. This expansion is part of a broader roadmap set to be unveiled in the coming weeks, as Aevo looks towards achieving aggressive growth. According to DeFi data aggregator DeFiLlama, Aevo has already been hitting ever higher numbers in recent months. Only two months ago, the protocol had $10 million total value locked (TVL). At the time of writing that metric has increased to $50 million. Last month, the platform achieved a new record-high weekly trading volume level in excess of $500 million. Julian Koh attributes this growth in part to Aevo's yield-bearing balances. Users deposit their crypto, which is then sent to MakerDAO to generate yield. In return, users receive a derivative token to trade on the Aevo platform, providing a mechanism for traders to earn yield while actively engaging in trading. 2023 rebrandRibbon Finance, which initially launched Aevo separately, merged the projects under the Aevo branding in July 2023. As part of the rebrand, an Aevo token will be introduced, with a 1:1 exchange rate for RBN token holders during migration. Post-rebrand, Aevo plans to roll out an incentive program aimed at boosting the platform's metrics.  Looking ahead, Aevo plans to delve deeper into yield offerings, drawing inspiration from Ribbon Finance. The platform aims to launch yield strategies in Q1 of this year, allowing users to lock up their crypto in various setups designed to generate returns, with the tokens being unavailable for trading during this period. One notable strategy that has contributed to Aevo's appeal is the pre-launch trading of upcoming tokens. The platform supports trading for tokens expected to launch soon, often through airdrops, providing an opportunity for traders to hedge against airdrops or lock in specific prices before the official launch. The project team membership draws on past experience at Coinbase, Kraken and Goldman Sachs, with academic backgrounds attained from Stanford, MIT and Cornell University. 

Socket, a cross-chain infrastructure protocol, and its interoperability bridging platform, Bungee, have restarted operations following a temporary pause prompted by an exploit that led to the apparent theft of $3.3 million.Photo by Anna Tarazevich on PexelsSecurity incidentTaking to the company’s Discord, Socket team hospitality lead Taylor Melvin clarified that it had “experienced a security incident which affected wallets with infinite approvals to Socket contracts.” The incident, which occurred on Tuesday, involved an unknown attacker draining millions worth of stablecoins and other tokens from the Bungee bridging aggregator. The attackers targeted wallets with infinite approvals to Socket contracts, exploiting authorizations for blockchain-based tools that allow applications to access tokens in a user's wallet. Security researcher "@speekaway" was the first to flag the exploit on Tuesday. The attacker's wallet, connected to the exploit, held nearly $3 million in ether (ETH) and $300,000 worth of other tokens. By 2:47 p.m. ET, the attack seemed to have ceased, with the researcher recommending users to revoke approvals for Socket to safeguard their assets. Pausing contractsIn response to the security breach, Socket announced the pause of affected contracts on Tuesday at 3:15 p.m. ET. The project's team promptly identified and addressed the issue, taking swift action to mitigate the exploit's impact. @speekaway chimed back in once contracts had been paused, writing:”Think this pause fixed it, very likely no more attacks are possible. So if you are currently freaking out about revoking you can probably relax.” Normal service returnsAs Socket paused activity during the incident, preventing further propagation of the attack, developers worked to fix the issue. Early Wednesday, Socket developers announced that the problem had been resolved, and normal activities had resumed. The team also stated that plans for compensation were in progress. Cross-chain bridges, like Socket's Bungee, facilitate token transfers between different blockchains but remain susceptible to exploitation. Blockchain security and data analytics company PeckShield confirmed that at least $3.3 million had been lost, highlighting the need for enhanced security measures in the rapidly evolving blockchain ecosystem. The exploit involved the exploitation of a recently added route, which has since been disabled. The attacker targeted users who had over-approved Socket, draining funds up to the limit of their approval. This incident follows the $81 million hack of Orbit Chain, a cross-chain bridge connecting Ethereum to other networks, earlier in January. Cross-chain tools' complexity contributes to the frequency of such attacks, emphasizing the importance of understanding the security measures in place when utilizing these bridges. In a message to CoinDesk, Sergey Nazarov, co-founder of Chainlink, emphasized the need for users to scrutinize the security of their chosen bridge, considering the various levels of cross-chain security. With the complexities involved, users are encouraged to be vigilant and informed about the security spectrum of the bridges they employ. Socket was founded by Indian duo Rishabh Khurana and Vaibhav Chellani. In September, the company raised $5 million, with funding coming from Framework Ventures and Coinbase Ventures.