Japan works towards clearing legislative path for CBDC

OKX Ventures, the investment arm of the well-known crypto exchange and Web3 technology company OKX, has recently disclosed a strategic investment in Singapore’s Orbiter Finance. Developing ZK-proof technologyThe investment marks a significant step forward in advancing the evolution of blockchain infrastructure, given that Orbiter Finance has achieved recognition for its innovation in the process of developing its zero-knowledge (ZK) technology-based omni-chain rollup on the Ethereum network. This initiative goes beyond Orbiter Finance's initial role as an asset cross-rollup bridge. Over the last two years, Orbiter has processed over 12 million transactions with a total transaction volume surpassing $7.8 billion. The protocol has amassed a user base of over three million and cultivated a community exceeding 700,000 users and enthusiasts.Photo by Shubham Dhage on UnsplashOrbiter Rollup announcementAccording to a series of posts on the X social media platform over the course of the weekend, the project is gearing up to launch a ZK-tech-based instant omni-chain rollup on Ethereum. A standout feature of the protocol is the integration of ZK Simplified Payment Verification (SPV) to authenticate Layer 2 transactions on the mainnet and combat fraudulent re-layers via the Ethereum Virtual Machine (EVM).  This development introduces a secure, efficient, low-cost and rapid communication mechanism for Ethereum, with the added security benefits of ZK-SPV enabling Orbiter Finance to grant complete access to the "Maker" role. This marks a significant milestone in achieving decentralization within blockchain infrastructure. Dora Yue, founder of OKX Ventures, expressed enthusiasm about spearheading the strategic investment in Orbiter Finance. She highlighted the protocol's ability to overcome traditional bridge limitations, specifically in terms of speed, and its crucial role in enhancing the efficiency of cross-chaining between various Layer 2s and the Ethereum mainnet. Other investors in the project include Redpoint China, Hash Global and Skyland Ventures. Supporting 19 networksCurrently supporting over 19 Layer 2 rollups and a multitude of native Ethereum assets, Orbiter Finance is positioning itself as a vital infrastructure component for the Layer 2 ecosystem. Yue commended the team's ongoing commitment to product upgrades and their dedication to ensuring a more decentralized and trustless foundation for the Layer 2 ecosystem's growth in 2024. With an initial capital commitment of $100 million, OKX Ventures is focused on exploring and supporting the best global blockchain projects, fostering cutting-edge technology innovation, and investing in projects that provide long-term structural value. The venture aims to nurture innovative companies by offering global resources and leveraging historical experience in the blockchain industry. Orbiter Finance also maintains an openness to incorporating additional networks. It has established strategic partnerships with key players such as Arbitrum, Optimism, Polygon, Linea, zkSync, Base, Starknet, Scroll, Manta Network and others. In this manner, it has solidified its position in the ecosystem. Notably, the protocol announced a collaborative strategic partnership with Ingonyama earlier this month, taking a step forward in advancing ZKP acceleration. Ingonyama is a next-generation semiconductor company specializing in ZK-proof technology. With that, it is actively exploring the integration of ICICLE, a GPU library for zero-knowledge acceleration, into Orbiter's ZKP system through multiple meetings and code-sharing initiatives.  

Cebu Meeting of FSB Highlights Crypto RisksThe Regional Consultative Group for Asia of the Financial Stability Board (FSB) has highlighted the risks implicated by crypto assets in a series of meetings held on Thursday and Friday in Cebu, the Philippines.The FSB is an international body with a mandate to monitor the global financial system, as well as make recommendations in respect of that system. The agency was established by the G20 group of countries in April 2009, replacing its forerunner, the Financial Stability Forum.Photo by John Alvin Merin on UnsplashA regulatory framework for cryptoThe two-day event focused on non-bank financial intermediation (NBFI) in Asia and the development of an effective global regulatory framework for crypto-assets. It discussed recent developments in financial markets, together with their regional impact.In opening remarks, Philippine Central Bank Governor, Felipe Medalla, stated: “Crypto, the biggest issue there is, whether we like it or not is quite a lot, especially younger people who are actually gambling. They have huge losses, our view right now. Well, you’re there, it’s your problem and the regulation becomes strict the moment crypto meets banking.”International participants highlighted the need for the development of an effective global regulatory framework for crypto-assets. Particular concern exists with regard to the potential for systemic risk in relation to crypto and a potential overflow into the traditional financial system.Earlier this year, the FSB proposed a complete regulatory framework for cryptocurrencies, with the report having been originally submitted in October of last year. Among its key components is the imposition of tighter controls. It proposed the guiding principle of “same activity, same risk, same regulation” for crypto assets, mirroring the approach taken for traditional financial assets.Global approach to taming cryptoThis approach has proven to be problematic for people working within the digital assets space. Many of the core facets of cryptocurrencies are entirely different to anything we see in traditional finance. Trying to frame crypto within an existing approach and standard has been perceived by many to be akin to trying to fit a square peg in a round hole.It’s not the FSB's role or place to affect policy directly. That responsibility lies with policymakers and regulators in each individual country. However, the organization is seeking to influence those individuals and entities in the hope that they will employ its suggested regulatory framework.Klaas Knot, Chair of the FSB and President of the Dutch Central Bank, provided this view on crypto: “We will come up with a global regulatory framework. It also only makes sense to regulate this from a global perspective. Because, nowadays you can take a server and put it anywhere in the world and start issuing these digital assets.”From Knot’s take, it’s clear that governments and central bankers are cottoning on to the fact that individual nation-state regulation is futile to an extent where decentralized innovations like cryptocurrency are concerned. Others such as European Central Bank (ECB) President Christine Lagarde and Mark Branson, President of German financial markets regulator BaFin, similarly have called for a globally enforced regulatory approach over the course of the past year.Ongoing struggleWhile regulation can be helpful, particularly when it comes to the points at which crypto meets the traditional system, there’s no doubt that this emerging innovation will disrupt the conventional system to some degree or other. That may place an incentive before central bankers and governments to try and stymie the further development of digital assets.While a truly global approach to regulating digital assets could retard development of the sector, there is rarely total consensus among world governments on a single issue. Therefore, by its very nature, crypto, and the digital assets sector will likely continue to develop regardless. It’s more a question of how long that process takes.

Safeheron, a Singapore-based provider of digital asset self-custody solutions for institutions, has released the world’s first open-sourced trusted execution environment (TEE) related to Intel Software Guard Extensions (SGX).  The Intel SGX is a hardware-based security technology integrated within some Intel processors. It enables application developers to run application code within a secure isolated environment, while preventing access to that code or modification of it by other applications or by the operating system running on that hardware.Photo by Shubham Dhage on UnsplashAddressing Web3 security & scalability challengesThe Intel SGX enables a TEE, creating a black box for computation. In a blog post published by Safeheron on May 6, the company claimed that its open-source framework “addresses fundamental security and scalability challenges within blockchain and Web3 ecosystems, offering broad potential for deployment across critical scenarios.” The company asserted that the enabling of off-chain TEEs as achieved by its framework, provides for robust blockchain layer-2 scaling, together with privacy-preserving computation. In this way, layer-1 blockchain load can be minimized while enhancing network throughput and verifiability. Safeheron further claimed that this all paves the way for the evolution of a trusted “second execution layer” for decentralized applications. Overcoming Intel SGX complexitySafeheron developed the TEE framework using C++, a high-level object-oriented programming language. The firm open-sourced the SGX framework due to the significant challenges that developing with Intel SGX poses, arising from its complexity and its engineering overhead. On X, the company claimed that the new framework reduces SGX TEE development complexity, enabling developers to build applications securely for blockchain, cloud security and privacy computing. The framework optimizes advanced cryptographic support, enhanced testing capabilities, high-level API design and secure and encrypted file input and output. Moving beyond closed and opaque systemsSafeheron added that it open-sourced the framework as it had seen concern expressed within the Web3 sector regarding the development of closed and opaque systems, with that concern elevated in relation to ongoing security failures related to Web3 platforms. Safeheron CEO Wade Wang told Cointelegraph that in open-sourcing the framework, the firm is “not threatened by competitors,” but that it is concerned about “slow innovation due to closed systems.” The Singaporean firm was established in 2021. It counts HashKey Capital, Bixin Ventures, Antalpha Ventures, M77 Ventures and Kryptos among its investors. Back in 2022, it raised $7 million in a pre-Series A funding round. At the time, the project’s mission was to make private keys, which individuals use to control and self-custody their digital assets, safer. In terms of products offered, the company markets its MPC Node Suite, a white-label solution that allows clients to build out multi-party computation (MPC) wallet-based applications. It also offers Keyless Wallets that facilitate the development of wallets that don’t require traditional keys.  In February crypto exchange platform BYDFi partnered with Safeheron, leveraging its MPC technology and TEE to build out a key management system.