Martin Moeller

Bank for International Settlements – BIS, Raphael Auer, “Embedded supervision: how to build regulation into decentralised finance” This paper proposes that supervisors might build on decentralised finance to use DLT to efficiently supervise financial markets. The basic premise is that regulating blockchain-based finance should not require a departure from long-established principles on the regulation of specific economic activities. Rather, regulators and supervisors might consider investigating how their use of technology could evolve alongside that of the financial industry. Embedded supervision is distinct from other forms of “suptech” or “regtech”, which aim to use machine learning or artificial intelligence to more efficiently monitor the financial industry (see FSB (2017) and Broeders and Prenio (2018)). The key principle of embedded supervision is to rely on the trust-creating mechanism of decentralised markets for regulatory purposes too. DLT-based markets change the way assets are traded and how they are packaged into complex financial products. Since the information contained in the blockchain is verified by decentralised economic consensus, it could replace current processes for data delivery and verification. In today’s compliance process, the data’s trustworthiness is guaranteed by the legal system, the relevant authorities and the threat of legal penalties. In DLT-based markets, by contrast, data credibility is assured by economic incentives. In this world, the supervisor must examine the conditions under which the market’s economic consensus is strong enough to guarantee the quality of the data contained in the distributed ledger. ——— #dataaccess #datainteroperability #FMI #globalsupplychain #crossboarderpayments #securefinancing #fraudprevention #tradefinance #openbanking #fintechdataplatform #tradematters #sustainability #digitaltrade #globaltrade #FinancialMarketInfrastructure #technology #LEI #digitalidentity #C4DTI #paperless #digitalidentities   #innovation  #digitalisation #paperlesstrade #digitaltransformation   #digitaltradechampion #digitaltradeevangelist #openfinance #internationaltrade #digital #crossbordertrade #smartdata #cbdc #regtech #suptech #payments #innovation #banks #digitalrevenueimpact #risk #regulations #digital #m2mi #cybersecurity #risk #banking #embeddedfinance #openbanking #sustainablefinance #iot #money #bankofengland #digitaleconomy #fintech #multicurrency #privacy #artificialintelligence

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The Swiss Financial Market Supervisory Authority FINMA recently addressed stablecoin issuance and financial market law aspects for stablecoin projects. Stablecoin issuers are classified as financial intermediaries under the Anti-Money Laundering Act, emphasizing the need to identify holders and determine beneficial owners to mitigate risks like money laundering and terrorist financing. Acceptance of public deposits by stablecoin issuers typically requires a banking license, unless specific conditions are met to protect investors, such as a bank guarantee in case of default. FINMA's approach seeks to balance fintech innovation with robust risk management. Stay informed on the evolving regulatory landscape for stablecoins and the forthcoming draft legislation on fintech licenses. For more details, visit the link: https://lnkd.in/dxVEs5MW What are your thoughts on #stablecoin regulation?

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Definitely a must read for Asset Servicing enthusiasts who are looking at futuristic trends.

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And here you have the oxymoron “ The Project Guardian is an initiative that explores the feasibility of decentralized finance (DeFi) applications and asset tokenization in wholesale funding markets.” Like R3 Corda, just doing POCs and then when trying to implement them in the real “private” business world they found out they are total useless cases... Why? Because they are just reinventing the wheel..stop wasting money on private permissioned blockchains and realize the fact that public blockchains are the true global liquidity networks making JPMorgan and Citibank transaction banking networks obsolete.

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🚀 Exciting News from the Cardano Foundation! 🚀 We're thrilled to announce the publication of our research paper “MACS: A Multi-Asset Coin Selection Algorithm for UTxO-based Blockchains.” Presented at the 2023 IEEE International Conference on Blockchain, this paper delves into the innovative MACS algorithm, which enhances coin selection for UTxO-based blockchains. 🔍 Why is this important? Coin selection influences transaction speed, privacy, and fees. The MACS algorithm optimizes these factors, improving user experience and blockchain efficiency. 💡 Key Highlights: - Minimizes transaction fees and UTxO pool size - Preserves user privacy - Introduces a priority score for UTxOs based on value, age, and linkage - Shows promising results in simulations The Cardano Foundation is committed to advancing blockchain research and technology. We invite you to read the full paper and join us in exploring the future of blockchain innovation! #Cardano #Blockchain #Innovation #Research #MACS #UTxO #Cryptocurrency #IEEEBlockchain https://lnkd.in/eWr5TJc9

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Blockchain adoption in institutional finance is accelerating, according to OMFIF’s 𝟮𝟬𝟮𝟰 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗔𝘀𝘀𝗲𝘁𝘀 𝗿𝗲𝗽𝗼𝗿𝘁, which introduces the first blockchain league tables for bond issuance. The report highlights growing momentum in blockchain bonds, with 14 issued in 2024 so far, already outpacing 2023's total. Despite blockchain’s disruptive potential, many market participants remain cautious about rapid settlement times, but 𝟯𝟴% 𝗼𝗳 𝗿𝗲𝘀𝗽𝗼𝗻𝗱𝗲𝗻𝘁𝘀 𝗮𝗿𝗲 𝗲𝘅𝗽𝗹𝗼𝗿𝗶𝗻𝗴 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗲𝗱 𝗟𝗲𝗱𝗴𝗲𝗿 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 (𝗗𝗟𝗧) 𝗳𝗼𝗿 𝗱𝗲𝗯𝘁 𝗶𝘀𝘀𝘂𝗮𝗻𝗰𝗲. As tokenization gains ground, the financial market’s infrastructure is on the brink of transformation. Source: https://lnkd.in/egfrFuNT For more weekly insight and thought-provoking analysis, ensure you get your copy at 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗕𝘆𝘁𝗲𝘀: https://lnkd.in/ev-WMFzG. Make sure you sign up to get your weekly analysis. #Blockchain #DigitalAssets #Tokenization #DLT #CapitalMarkets

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𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗠𝗼𝗻𝗲𝘆 𝗖𝗵𝗮𝗻𝗴𝗲𝘀 𝘁𝗵𝗲 𝗡𝗮𝘁𝘂𝗿𝗲 𝗼𝗳 𝗠𝗼𝗻𝗲𝘆 - 𝗝𝗼𝗻𝗻𝘆 𝗙𝗿𝘆 | 𝗧𝗮𝗹𝗸𝗶𝗻𝗴 𝗠𝗮𝗿𝗸𝗲𝘁𝘀 𝘄𝗶𝘁𝗵 Michael Wilson & David Buik Join Jonny Fry, renowned for his research on blockchain and digital assets, in the Capital.com studio for Talking Markets. Recent discussions with finance experts have focused on the evolution and impact of digital payments and blockchain technology: 💡 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗖𝘂𝗿𝗿𝗲𝗻𝗰𝗶𝗲𝘀 𝗮𝗻𝗱 𝗕𝗹𝗼𝗰𝗸𝗰𝗵𝗮𝗶𝗻 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻𝘀 The conversation covered Central Bank Digital Currencies (CBDCs), stablecoins tied to fiat currencies like the US dollar, and tokenized assets leveraging blockchain technology. Jonny Fry highlighted CBDCs, noting that 91% of central banks are exploring these programmable currencies for enhanced financial inclusivity and efficiency. Meanwhile, stablecoins aim to stabilize market volatility, though concerns about regulatory oversight persist. Blockchain's influence extends into asset management, with firms like BlackRock tokenizing funds for 24/7 trading, enhancing market liquidity and accessibility. 🔍 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 & 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗜𝗺𝗽𝗮𝗰𝘁𝘀 The discussion emphasized regulatory complexities such as the UK Proceeds of Crime Act, impacting digital asset users' rights and legal protections. Despite challenges, McKinsey projects significant growth in the global digital asset market, expecting revenues to reach $3.2 trillion annually by 2027. This growth is driven by digitalization in sectors like e-commerce and international trade, benefiting from reduced transaction costs and improved trade efficiency. 💻 𝗗𝗮𝘁𝗮, 𝗔𝗜, & 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 Jonny highlighted the pivotal role of data in banking, enabling AI-driven analysis for personalized financial services and risk management. AI-powered analytics optimize operational efficiencies and enhance fraud detection, positioning banks to leverage consumer data insights effectively. 🌍 𝗚𝗹𝗼𝗯𝗮𝗹 𝗔𝗱𝗼𝗽𝘁𝗶𝗼𝗻 & 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸𝘀 David Buik stressed the importance of balanced regulatory frameworks that promote innovation while safeguarding consumer interests. Trust and regulatory compliance are critical for the widespread adoption of digital financial services globally. 🚀 𝗙𝘂𝘁𝘂𝗿𝗲 𝗢𝘂𝘁𝗹𝗼𝗼𝗸 & 𝗖𝗼𝗻𝗰𝗹𝘂𝘀𝗶𝗼𝗻 Looking ahead, the digital currency and blockchain landscape promises secure, transparent, and efficient transactions, prioritizing user convenience. Continued dialogue and education are crucial for advancing regulatory frameworks alongside technological progress. Navigating regulatory landscapes and ensuring cybersecurity are essential to unlocking their full potential. Watch here: https://lnkd.in/enUhmmxm For more weekly insight and thought-provoking analysis, get your copy at https://lnkd.in/ev-WMFzG #Blockchain #CBDCs #Stablecoins #FinancialInnovation #DigitalPayments #AssetManagement #ArtificialIntelligence

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US Congressman Tom Emmer: CBDCs "threaten to destroy the American way of life. Unlike decentralized digital assets such as #Bitcoin.” Huzzah, Tom! The future of local financial services is nowhere to be found in continuing to latch onto the centralized system. Financial flourishing and local banking sovereignty will require #creditunions and #localbanks to embrace censorship resistant private wealth and personal property tech - i.e. #Bitcoin. My hope is that hundreds of credit unions are writing and calling their reps to support bills like this, and to back Jim Nussle in his recent related comments. The team at DaLand LLC is ready to serve local banking institutions and noble local financial cooperatives in the important work of developing strategies to stay plugged into the future of money and deploying technical solutions to put digital wealth at the core of your operation (assuming you have a modern core!): https://lnkd.in/e29h5rzY #banking #money #dollar #CBDC #inflation #economics #liberty #financialliteracy #digitaltransformation

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A new study by Standard Chartered and Synpulse reveals the transformative potential of tokenising real-world assets, projecting significant growth in the coming decade. 𝗛𝗲𝗿𝗲 𝗮𝗿𝗲 𝘁𝗵𝗲 𝗸𝗲𝘆 𝗽𝗼𝗶𝗻𝘁𝘀: 🌐 𝗠𝗮𝗿𝗸𝗲𝘁 𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹: • Demand for tokenised assets is estimated to soar to $30.1 trillion by 2034. • Trade finance assets are expected to rank among the top three tokenised assets, comprising 16% of the total. 📈 𝗚𝗹𝗼𝗯𝗮𝗹 𝗧𝗿𝗮𝗱𝗲 𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁: • Global trade is projected to reach $32.6 trillion by 2030. • Trade finance assets, due to their unique characteristics, are positioned as prime candidates for token creation. 💡 𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗟𝗮𝗻𝗱𝘀𝗰𝗮𝗽𝗲: • Tokenised assets currently include US treasuries and money market funds, valued at approximately $5 billion as of early 2024 (excluding stablecoins). • Trade finance assets are underutilised due to lack of familiarity, inconsistent pricing, and operational challenges. 🔗 𝗔𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲𝘀 𝗼𝗳 𝗧𝗼𝗸𝗲𝗻𝗶𝘀𝗮𝘁𝗶𝗼𝗻: • Promotes operational efficiency and automation. • Facilitates access to new asset classes. • Enhances financial market infrastructure, supporting innovative uses in DeFi and new business models. 🔍 𝗔𝗱𝗱𝗿𝗲𝘀𝘀𝗶𝗻𝗴 𝗧𝗿𝗮𝗱𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗚𝗮𝗽: • Tokenisation is seen as a solution to the $2.5 trillion global trade finance gap. • Enhances market access, resilience, and liquidity of supply chains. • Expands reach to suppliers deeper within supply chains. 🤝 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝗼𝗻: • Kai Fehr, Global Head of Trade at Standard Chartered, emphasizes the need for industry-wide collaboration to unlock the trillion-dollar opportunity in tokenisation. • Standard Chartered aims to bridge traditional financial markets with token-enabled market infrastructure. 🚀 𝗩𝗶𝘀𝗶𝗼𝗻 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗙𝘂𝘁𝘂𝗿𝗲: • Yves Roesti, Managing Partner & CEO of Synpulse Group, highlights tokenisation as a transformative force in global trade finance. • Synpulse is committed to partnering with industry players to develop infrastructure and strategies for tokenised real-world assets. Source: https://lnkd.in/dXDc-Wvx For more weekly insight and thought-provoking analysis, ensure you get your copy at 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗕𝘆𝘁𝗲𝘀: https://lnkd.in/ev-WMFzG. Make sure you sign up to get your weekly analysis. #Tokenisation #TradeFinance #GlobalTrade #DigitalTransformation #Blockchain #DeFi #FinancialInnovation #StandardChartered #Synpulse #TradeFinanceGap #SupplyChain #AssetTokenisation

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Story, a San Francisco-based startup, leverages blockchain to protect intellectual property (IP) and recently secured $80 million in Series B funding led by Andreessen Horowitz. 🔹 𝗙𝗶𝗴𝗵𝘁𝗶𝗻𝗴 𝗔𝗜 𝗜𝗣 𝗧𝗵𝗲𝗳𝘁: Story addresses a growing issue where generative AI models, like OpenAI’s GPT, use copyrighted content without permission, posing a significant risk to creators’ intellectual property. 🔹 𝗕𝗹𝗼𝗰𝗸𝗰𝗵𝗮𝗶𝗻-𝗕𝗮𝘀𝗲𝗱 𝗜𝗣 𝗣𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝗼𝗻: Story allows creators to prove ownership of their content by embedding licensing and royalty terms directly into smart contracts, streamlining IP protection and eliminating intermediaries. 🔹 𝗘𝗺𝗽𝗼𝘄𝗲𝗿𝗶𝗻𝗴 𝗖𝗿𝗲𝗮𝘁𝗼𝗿𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗔𝗴𝗲: With 200 developers on its platform, Story aims to create an “IP legoland” where creators maintain control over how their content is used, offering a new way to monetize and protect IP in a world increasingly influenced by AI. Source: https://lnkd.in/eWCEVUbQ For more weekly insight and thought-provoking analysis, ensure you get your copy at 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗕𝘆𝘁𝗲𝘀: https://lnkd.in/ev-WMFzG. Make sure you sign up to get your weekly analysis. 

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"The road to institutional DeFi", very interesting whitepaper published in June 2024 by the Deutsche Bank in collaboration with Northern Trust. 👇 In this white paper, the authors reflect on the recent history of #DeFi and aim to demystify some frequently used terms. They then take a closer look at several key driving forces in the #DeFi domain. Finally, the paper considers what lies in store for the #institutional #financialservices community on the road to institutional #DeFi. Link: https://lnkd.in/dbKc_KwC #web4 #web5 #fintech #digitalera #defi #cryptocurrency #digitalcurrency #virtualassets #digitalassets #virtualcurrency #digitaltransformation #blockchain #dlt #stablecoins #cryptoassets #web3 #tokenization #RWAs #NFTs #DAOs #RWAs #staking #mining #ZKPs #tokenomics #gamefi #lending #CEXs #DEXs #DePIN #LSTs 

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Digital wallets have a big potential beyond cryptocurrencies—they can represent a much safer and more private alternative for storing your data, argues Akshin Dzhangirov. https://lnkd.in/gAcsT-_i

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VanEck April Crypto blog: "The story of the month can best be described as the cooling of speculative froth amid more troubling macro signals, a stagnation of user activity, and a worsening of the regulatory environment in the U.S. On the latter point, the Biden administration is hurrying to make DeFi & self-custody functionally illegal in the United States before voters can express their views at the ballot box in November. We have already noticed a heightened correlation between bitcoin’s price action and Trump’s victory odds over the last six months. We think such a relationship may rise further over the next six months before the Supreme Court or legislators can definitively address these issues." Patrick Bush Full wrap here --> https://lnkd.in/euhu423b

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Euro stablecoins and Digital Euro (retail CBDC). We need both. Great discussion between Dr. Alexandra Hachmeister (Deutsche Bundesbank) and Alexander Hoeptner (AllUnity) about the pros and cons of tokenised public and private forms of money - nicely moderated by Sarah Schmidtke at Euro Finance Week in Frankfurt. I liked the balanced view about the different use cases for money and that for consumers a "Euro is an Euro" - as long as it is properly licensed. Mica regulation paves the way for stablecoins in Europe and AllUnity will try to ride this wave. In parallel, ECB pushes its development for the digital Euro (retail CBDC). Seems like both will coexist nicely.

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☑ ... another prediction materializes ... #stablecoin issuers will become banks, or #banks will become stable coin issuers (likely both). Regardless which path materializes, one fact is certain - money will not remain the same, and #banking leaders need to be using their modern cores to remain "plugged into the future of money." The days of the electronic dollar are numbered, the years of your #communitybanking institution need not be. The team at DaLand LLC is ready and available to serve, from educational seminar to operational solutions. You're going to need more than an 'app' or a 'crypto wallet;' you're going to need to keep new forms of money data at/in the core of your business! https://lnkd.in/gZeTi5qK

Steakhouse Financial reviews the BlackRock USD Institutional Digital Liquidity Fund #BUIDL BUIDL operates on the #Ethereum #blockchain, providing a secure and transparent platform for investors to earn yields on their US dollars through #tokenization. This method offers a novel way to engage with the #digitalasset space, combining the reliability of traditional financial mechanisms with the efficiency of blockchain technology​. 

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In one of the surveys on adoption of tokenised Digital assets, 54 % institutional investors felt that shortened settlement time was lower in their consideration set. What could be the reason ? While a short settlement period offers efficiency, liquidity, and reduced counterparty risk, investors may prioritize a balance between speed and risk mitigation, leading to a cautious rating despite the advantages of quick settlement in tokenised securities. What do you think ?

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🚨 Tokenisation, stablecoins, staking - what's next for the UK?🚨 Two speeches of note today at the City & Financial Global Tokenisation Summit. 1️⃣ Sasha Mills, Executive Director for Financial Market Infrastructure at the Bank of England, talked about innovation in wholesale financial markets. 2️⃣ Tulip Siddiq, Economic Secretary to the Treasury, talked about the government's plans for crypto, stablecoins and staking. 🤔 What did they say? 1️⃣ Sasha Mills, on innovation in wholesale financial markets: Digitisation has been the combustion engine of financial markets, transforming paper-based systems to computer-based activity, on to the digital systems of today. Tokenisation can further revolutionise financial markets. Not a novel concept – but the real innovation is the type of infrastructure on which that token sits, and what that enables. ✅ Distributed ledgers can reduce the need for a single central party to perform record-keeping on the ledger. ✅ No single point of failure in how critical data is stored. ✅ Cryptographic techniques to secure data can reduce risk by improving the security and integrity of financial transactions ✅ Programmability has facilitated the consolidation and collapsing of the trade and post-trade functions, resulting in reduced settlement risk, and unprecedented efficiency gains in the trade lifecycle. 🤔 What is the Bank of England’s role in this reinvention? ✅ Digital Securities Sandbox (DSS): ➡ allows industry to experiment with developing technologies to issue, trade and settle digitally native securities, and ‘digital twin’ tokenised securities in a safe and secure environment for a range of regulated asset classes. ✅ Innovations in Money: ➡ Money needs to keep up with tokenised assets. BoE considering ways to enhance usefulness of central-bank money as a settlement asset for digital asset transactions. Also considering what additional functionality a wholesale central bank digital currency could bring. ✅ Post-trade settlement: ➡ Traditional processes are sequential and often manual, time-consuming, costly, and operationally risky for all users of financial markets. The tokenisation of securities on distributed ledgers – digital securities – offers the potential to merge trade and post-trade functions, shortening settlement cycles and offering more programmability and automation in financial transactions. 2️⃣ Tulip Siddiq, on plans for crypto, stablecoins and staking: ✅ Government to introduce regulatory regime for cryptoassets. ✅ Stablecoins to be regulated at same time as cryptoassets. ✅ Issuance and custody will be regulated. ❌ No longer a phased approach. ❌ Stablecoins not to be in scope of payment services regulation. ❌ Staking is not a Collective Investment Scheme. ............. 🤔 What's next? ⏩ Expect to see the framework early next year. I'd love to hear your thoughts 👉 #HMT #BoE #innovation #tokenisation #stablecoins #staking

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Tokenization is signaling a transformative shift in capital markets. Especially when we see changes in market practices. By enhancing trading efficiency, transparency, and asset liquidity, the question is no longer if blockchain will change the game, but when. https://lnkd.in/gxpES8RA

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