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Financial Stability on The Brink of Instability Due to Bigtech Companies

With cryptocurrencies on the rise, the Financial Stability Board suggests governments and regulators to thoroughly monitor the rising trends of BigTech companies developing crypto payment and digital money transmission markets.

A recent report published that the FSB spoke on the increase in monitoring BigTech’s involvement in the financial services, as it recognizes its potentiality in terms of higher financial inclusion. Moreover, the concern was mainly with mainstream economic infrastructures being in cessation if the participation of companies like Facebook partakes in crypto payments and electronic transfers.

FSB’s primary concern relates to major tech companies whose large user groups may disintegrate banks, should they become leaders in the payments market. A report reads, “Where stored value payment products (e.g., mobile wallets) become prominent; a relatively large and potentially mobile pool of funds may be controlled outside the banking system (though often these funds are ultimately deposited with banks). Furthermore, the greater mobility of this pool of funds compared with the customer deposits may also reduce the stability of bank funding.”

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China’s Tencent Will Invest 500 Billion Yuan in Blockchain and New Technology Infrastructure

Chinese tech giant Tencent Holdings, the owner of China’s messaging platform WeChat has announced that the company will be investing 500 billion yuan ($70 billion) in the next five years in emerging technologies including blockchain, artificial intelligence (AI), cloud computing, and cybersecurity.

Tencent is aiming to strengthen the development of FinTech in China, following the push of accelerating the development of blockchain as stated by the country’s President Xi Jinping.

The National Development and Reform Commission (NDRC) of China discussed the standards of its “new infrastructure” for technology which included the call for a structural upgrade of its economy.

Fan Yifei, the Chinese central bank (PBoC)’s deputy governor echoed President Xi Jinping’s call for the acceleration of the country’s blockchain development adoption. The president pointed out that it is necessary to strengthen fundamental research of blockchain technology and enhance innovation, enabling China to take a leading position in the blockchain field.

Key sectors of the investment include blockchain, servers, big data centers, supercomputer centers, internet of things operating systems, 5G networks, and quantum computing, according to Dowson Tong, senior vice president of Tencent.

Tencent executives to join China’s blockchain committee

The Chinese central government has put together a national blockchain committee to work on setting industrial standards. The Ministry of Industry and Information Technology (MIIT) issued a notice on April 13 of the “Public Notice on the Formation of a National Blockchain and Distributed Ledger Technology Standardization Technical Committee.”

Committee members include executives from well-known Chinese institutions, including Baidu, Tencent, Huawei, Peking University, Tsinghua University, Fudan University, amongst others. The ministry is also asking for public feedback on the committee members until the deadline of May 12, 2020.

China to develop a “digital central bank”

China’s central bank, People’s Bank of China (PBoC) is planning to look into building a digital central bank infrastructure to improve the standards of financial services in the country.

A three-year FinTech development plan was set out for the country in August 2019, and 2020 has entered its second year. The development of blockchain, the internet of things (IoT), big data, and other innovative business models will also be expected to drive the digital transformation of the financial industry and promoting financial technology in the country.

China has also taken an ambitious step to “maintain its leading position in digital currency technology,” as it remains the central bank’s current top focus. According to Zhongtai Securities, the People’s Bank of China expects to be in the world’s leading position in digital currency development, as it continues to strive for efficient research and development, as well as technical testing of digital assets.

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Islamic Development Bank to Create Blockchain Smart Credit Platform with Samsung's Blocko

It is a known fact that blockchain technology can help drive a tremendous change in the financial services sector. Central Banks are developing future-oriented economies and are devising means to align with the drastic changes that blockchain technology and digital assets are driving. While some are actively developing their state-backed digital currencies, Middle East powerhouse, Saudi Arabia is opening options for a blockchain-backed credit system.

This innovative project leveraging blockchain technology was initiated by the Islamic Research and Training Institute (IRTI), the research arm of the country’s Islamic Development Bank (IDB). The IRTI partnered with Samsung backed blockchain provider Blocko in an alliance that comes as part of the E24P.

The E24P is a collective of technology experts, distributed financial services providers, state-level government sponsors, and leading research institutes in the UAE and the UK working with clients in high-growth economies and sectors across the Middle East, Africa, and South East Asia.

Towards a Functional Credit System

The IRTI partnership with Blocko comes as part of the E24P regional consortium launched by Blocko in April 2020. This partnership will help create a functional blockchain-backed credit system that will help minimize the risks associated with credit financing to businesses and consumers.

With the projection of the Islamic Finance sector to expand to $3.78 trillion dollars by 2022, the IDB is eager to address any bottleneck that may impede this growth. The IDB, known as a non-interest bank, faces hurdles in the timely repayment of credit facilities by borrowers. The blockchain credit system currently under development will help put an incentive for timely repayment of loans while also helping to automatically donate late payment charges to the appropriate charities.

The smart credit management system will be built on the Aergo Hybrid Blockchain and with its many functionalities which also include insurance options for lenders will help create an efficient credit system.

Future Blockchain Engagements

Saudi Arabia is renowned for having friendly regulations with respect to blockchain technology. The Saudi Arabian Monetary Authority (SAMA) has profiled and believes blockchain and cryptocurrencies are redefining the future of finance. Through SAMA’s active engagements, we can conclude that the country is well-positioned to lead the region into a blockchain empowered future.

Bank of England Chooses Accenture To Rebuild UK Payment System

The Bank of England, the UK’s central bank will work with Accenture to build and develop a new innovative world-class payment service.

The Bank of England has announced that it has hired Accenture IT consulting firm to overhaul part of the UK’s payment infrastructure, in a contract worth over £150 million ($195 million). This follows a public procurement that started in February 2019.

Driving Payments Transformation

Accenture will renew the RTGS (real-time gross settlement) service to support innovation and resilience in payments and settlements in the UK. The RTGS renewal program include integrating and building the new RTGS platform, improving data access, and offering a service that would support the financial service sector and its customers in the years to come.

The RTGS service is the infrastructure, which holds accounts for various institutions, building societies, and banks delivering final and risk-settlement. The RTGS currently handles £685 billion worth of transactions each day between large financial institutions. The service, therefore, plays a critical role in the UK economy.

The renewed RTGS service is set to be designed to respond to the changing structure of the financial system, ensure resilience in the heart of the service, give access to a wider number of companies, offer improved functionality and wider interoperability, and strengthen end-to-end risk management of Britain’s high-value payment system.

Victoria Cleland, the BoE’s executive director for banking, payment, and innovation, said that the renewal program is the main priority not only for the central bank but also for the wider UK payment industry. She further mentioned that the program would support a resilient financial system, which protects the UK’s monetary and financial stability in the years to come.

The RTGS renewable program is being delivered in multiple transition phases to minimize risks and is expected to begin in 2022 and run until 2025.

The Bank of England Considering to develop CBDC

As part of its commitment to developing a stable, resilient, and diverse payment landscape, the UK’s central bank is reviewing whether it should create a CBDC. Andrew Bailey, BoE governor, recently admitted that a Central Bank Digital Currency would be a reality in the next few years. However, he did not provide a specific time frame of when the discussions are expected to end. The Bank of England is already part of a group of leading central banks that have collaborated to conduct research on developing their digital currencies. While China is leading, nations like the UK and the US are still at the decision stage.

KPMG Unveils Blockchain-Based Climate Accounting Tool To Help Drive Environmental Sustainability

Multinational professional services firm and one of the Big four auditing firms, KPMG is set to offer a blockchain-based tool dubbed the Climate Accounting Infrastructure (CAI) to help organizations more accurately measure, mitigate, report, and offset their greenhouse gas emissions.

Per the official KPMG announcement, the patent-pending Climate Accounting Infrastructure will be able to analyze climate risks associated with asset valuations and help organizations better assess and employ systems to offset their emissions.

The CAI as noted by the company will come in handy in helping organizations to meet their sustainability practice goals alongside helping them in the much-anticipated reporting of the sustainability practices each firm is expected to demonstrate in alignment with the environmental, social, and corporate governance (ESG) demands of capital markets investors.

The capability will use blockchain to securely store environmental data in a financial system as part of organizations’ climate risk assessments and asset valuations, including as part of their real estate portfolios. The capability will thus present a trusted and transparent system to measure, account for, and report on emissions data.

Arun Ghosh, KPMG’s US Blockchain leader said in a statement:”As investors broaden their focus beyond financial factors to include ESG practices, organizations are increasing efforts to reducing carbon footprints, alongside transparent disclosure of progress. Trusted reporting capabilities, such as those enabled by Climate Accounting Infrastructure, will be critical to meet stakeholder expectations and to comply with emerging regulations.”

KPMG has been very prominent in rolling out blockchain-based innovations for more functional enterprise integration. Besides announcing the launch of its patent-pending crypto analytics platform to streamline crypto-related services for financial services and FinTech companies back in June, the company currently has in operation a blockchain-enabled track and trace platform dubbed KPMG Origins in Australia, China, and Japan. The track and trace blockchain infrastructure find strong use in the supply chain industry to enhance global trade.

Blockchain Startup W3BCloud to Go Public via SPAC Deal

Blockchain cloud infrastructure service provider W3BCloud is set to go public via a Special Purpose Acquisition Company (SPAC) dubbed the Social Leverage Acquisition Corp I (SLAC).

According to the transaction document, the SLAC vehicle is being sponsored by Social Leverage, a leading early-stage VC. The proposed funds to be raised via the SPAC are pegged at about $100 million.

Going public through a special purpose acquisition company is an alternative route designed for startups looking to raise funds and trade on public bourses.

They are generally a faster-track option for promising startups, provided they have a matching business design with their sponsoring SPACs. Per the proposed merger deal, W3BCloud is on track to be listed on the New York Stock Exchange (NYSE).

W3BCloud is one of the promising startups that hope to be the go-to cloud infrastructure provider for the emerging Web3.0 ecosystems. Currently, the startup ticks the box for providing a quality supply chain and access delivery through its integration of AMD technology. The startup’s core partnership also extends to ConsenSys, which gives it software and protocol insights.

Over the years, the development of Web3.0 focused on cloud infrastructure providers has progressed in a limiting way. This is because crypto-based startups hardly patronize these decentralized cloud providers as preference remains largely for centralized services like Microsoft Azure and Amazon Web Services (AWS).

W3BCloud aims to change the narrative, and it is developing the right data centres, most of which are in the United States. The firm is exploring avenues to bolster its infrastructure with the funds raised and the remaining $345 million cash it has in its trust.

W3BCloud is riding on the strength of both its founders and the expertise of the veterans from Social Leverage. With the clamour for Web3.0 soaring remarkably this period, W3BCloud is hopeful it has a large market potential for its products.

Google Pairs with Coinbase to Spur Web3 Innovations, Offer Crypto Payments for Cloud Services

Google has teamed up with crypto exchange Coinbase to allow some of its clients to pay for cloud services using cryptocurrencies.

The strategic partnership also seeks to cater for the needs of the growing Web3 ecosystem. For instance, developers will have the chance to reliably and instantly operate Web3 networks, eliminating the need for complex and expensive infrastructure.

The collaboration will also see Google Cloud serve as Coinbase’s strategic cloud provider to boost enhanced exchange and data services. Per the report:

“Coinbase will use Google Cloud’s powerful compute platform to process blockchain data at scale, and enhance the global reach of its crypto services by leveraging Google’s premium fiber-optic network.”

Furthermore, Coinbase’s clients will leverage Google Cloud’s data and analytics technologies for machine learning-driven crypto insights.

Brian Armstrong, the CEO and co-founder of Coinbase, welcomed the strategic collaboration and said, “We are excited Google Cloud has selected Coinbase to help bring Web3 to a new set of users and provide powerful solutions to developers.”:

“With more than 100 million verified users and 14,500 institutional clients, Coinbase has spent more than a decade building industry-leading products on top of blockchain technology. We could not ask for a better partner to help execute our vision of building a trusted bridge into the Web3 ecosystem.”

On his part, Thomas Kurian, Google Cloud CEO, noted that the partnership would be a stepping stone toward creating an easier and faster Web3.

He said that this would happen in a frictionless way because developers would take advantage of the data services, security, reliability, and scalability rendered.

Kurian added:

“We’re proud Coinbase has chosen Google Cloud as its strategic cloud partner, and we’re ready to serve the thriving global Web3 customer and partner ecosystem.”

Google set the ball rolling in Web3 after it assembled a team to create services for developers earlier this year.

Google sought to tap the potential presented by the crypto space, given that Web3 Pioneers have developed peer-to-peer and decentralized systems intended to transform the internet, Blockchain.News reported.

DTCC to Acquire Securrency, Advancing in Digital Asset Infrastructure

The Depository Trust and Clearing Corporation (DTCC) has solidified its position in the digital asset sphere by confirming its intention to acquire Securrency, a firm renowned for its expertise in digital asset infrastructure development. This acquisition aligns with DTCC’s strategic vision of seamlessly integrating digital assets with its pre-existing products and services. The specifics of the deal remain confidential, but indications suggest a closure “in the coming weeks.”

Post-acquisition, Securrency will undergo a rebranding transition to become DTCC Digital Assets. This name change won’t affect the existing workforce. The senior leadership and an additional contingent of around 100 employees will remain part of the newly branded entity.

Securrency’s growth trajectory has been bolstered by investments from significant players like State Street, U.S. Bank, WisdomTree, and Abu Dhabi Catalyst Partners. In addition to these financial endorsements, the firm has collaborated with GK8, a company recognized for its proficiency in cybersecurity and digital asset custodianship.

The official statement from DTCC highlights its plan to make Securrency’s groundbreaking technology available for licensing. This move is anticipated to catalyze the interoperability of diverse distributed ledger systems. Notably, the technology has already been incorporated into the WisdomTree Prime platform, a digital asset management tool.

Originating in the U.S., DTCC has established itself as a premier clearing and settlement service, with regional branches worldwide. In 2022, DTCC and its affiliates processed a staggering $2.5 quadrillion in securities settlements. Furthermore, the company’s depository division managed the custody and servicing of securities approximating $72 trillion, sourced from over 150 countries and territories.

Although blockchain technology has been in existence for a while, its integration into mainstream sectors only commenced around 2020. DTCC marked its foray into this space in December, participating in a pilot project focused on tokenized securities settlement using a simulated digital dollar. This trial, executed in partnership with the Digital Dollar Project, tested transactions with tokenized securities using T2, T1, and T0 settlements.

On October 19, 2023, DTCC announced its definitive agreement to acquire Securrency Inc., emphasizing its commitment to bridging industry-standard practices with advanced digital technology. This move is set to position DTCC as a global leader in the digital asset sector. Securrency’s assimilation into DTCC will culminate in its rebranding to DTCC Digital Assets, with key personnel like Nadine Chakar, CEO of Securrency, taking on pivotal roles in the new organizational structure.

By amalgamating DTCC’s digital prowess with Securrency’s technology, DTCC aims to spearhead the development of its digital asset platform, emphasizing institutional DeFi. Furthermore, DTCC will take the reins in leading the global development of a robust digital infrastructure, licensing Securrency’s technology, and offering specialized services.

DTCC, with its rich 50-year legacy, stands as the world’s premier post-trade market infrastructure. Its global presence spans 20 locations, offering automated, centralized, and standardized financial transaction processing. In 2022, the firm’s transaction value reached an astounding U.S. $2.5 quadrillion, with its depository subsidiary managing securities valued at U.S. $72 trillion.

Securrency stands out as an institutional-grade digital asset infrastructure provider. It offers transformative solutions facilitating the trading, settlement, and servicing of digital assets. Its innovative product suite is poised to accelerate the institutional adoption of blockchain technology.

Aptos Unveils Winners of the Singapore World Tour Hackathon

Aptos is a well-known network that is known for encouraging innovation, and it has now made the winners of the Singapore leg of its World Tour Hackathon public announcements. On October 27, 2023, the network revealed 14 projects that stood out in different tracks via a series of tweets, emphasizing how the Aptos platform can serve as a fertile environment for generating real-world solutions. This highlighted how the Aptos platform can serve as a fertile foundation for producing real-world solutions.

One of the most notable aspects of the event was the division of the #AptosWorldTour Hack Singapore competition into five distinct tracks, each of which has its own distinct emphasis. The tracks included ‘NFTs, Social, and Gaming,’ ‘DeFi & Payments,’ ‘Infrastructure, Tooling, and Public Goods,’ ‘Move’s Most Innovative,’ ‘Web3 x AI: Hacking the Future of Content Creation,’ and ‘Move’s Most Innovative,’ with the first two being sponsored by Alibaba Cloud and Google Cloud, respectively.

The winner of the ‘NFTs, Social, and Gaming’ track was @IntoTheVerse_, followed by @stickman_apt and @TowneSquarexyz. TowneSquarexyz came in third place. In the ‘DeFi & Payments’ track, @aptospayment was able to come out on top, followed by @AmnisFinance and fxSwap (by @theISCTeam) in second and third place, respectively.

Following dAptoRator (by @NetSepio), Dddappp and Delegate took the second and third places, respectively, in the competition that was centered on the topics of “Infrastructure, Tooling, and Public Goods.” @EconiaLabs emerged victorious in the ‘Move’s Most Innovative’ track, with @ZabavaLabs and @Aptomingos coming in a close second and third, respectively.

Last but not least, in the ‘Web3 x AI: Hacking the Future of Content Creation’ competition, @aptscan_ai came out on top, while @SwapGPT took home the prize for second place.

Aptos expressed its heartfelt congratulations to the victors and praised the efforts of all of the hackers who participated in the competition. Additionally, it conveyed thanks to the event’s sponsors, guest speakers, and community members, all of whom contributed to the successful outcome of the event via their support.

The announcement of the winners highlights the ability of the Aptos network to stimulate creativity and create solutions that are applicable in the real world. The Aptos community is already vibrating with excitement in preparation for the next part of the #AptosWorldTour as the hackathon came to a triumphant conclusion.