Yasuda on Tokenization

⏩ Frictionless adds Tether USDT and Circle EURC support

• Version 2.2.2 of the Frictionless protocol went live last week with enhanced smart contract support for the ubiquitous USDt and MiCA-regulated EURC stablecoins, streamlining on-ramp and off-ramp transactions with programmable fees tailored for distributors.

• This model simplifies the adoption of stablecoins while allowing for controlled transaction costs, making it easier for institutions to manage risk exposure without retaining crypto assets directly on their balance sheets.

• The built-in fee programming helps distributors create more efficient pathways for asset flows, making stablecoin transactions both cost-effective and compliant with regulatory standards.

• This structure supports a “risk-off” approach for stablecoin usage, while retaining the benefits of blockchain-based liquidity and settlement.

🚀 Bitcoin for Business Initial Transactions

"If you build a bridge, go stand in the middle of it, if you build a plane, go fly it" Michael Saylor - MicroStrategy

• By leveraging our "Bitcoin for Business" strategy, we have begun incorporating Bitcoin holdings into our own balance sheet at Frictionless Markets. Each day's accrued interest is converted directly into Bitcoin, creating a unique financial model that registers Bitcoin as a permanent capital asset at fair market value. This method allows Frictionless Markets to use Bitcoin as a long-term, inflation-resistant asset class, supported by secure digital infrastructure.

• In the coming weeks, Frictionless Markets plans to expand access to this strategy via a new cash portal for institutional investors worldwide. This innovative approach links the stability of traditional cash management with Bitcoin's growth potential, offering a yield that combines capital preservation with inflation-resistant returns. Through this, institutional investors gain a straightforward way to access Bitcoin's potential without the complexities of direct digital asset management.

✨ New Frictionless Cash Portal

• Frictionless Markets is excited to announce a partnership with Delio Wealth to power the new Frictionless Cash Portal, a strategic move to deliver a turnkey, tokenized fund platform tailored for General Partners (GPs). Leveraging Delio's industry-leading private market infrastructure, this collaboration is designed to streamline and secure digital investments for clients. Set to launch on the weekend of November 9th, the platform will enhance Frictionless Markets’ capacity to provide GPs with a seamless, efficient investment experience, marking a pivotal advancement in digital asset management and tokenization solutions.

Bank of England Governor Urges Banks to Develop Tokenized Deposits

• Andrew Bailey, the Governor of the Bank of England, has recently called on banks to take a more proactive role in developing tokenized deposits. In a series of speeches delivered in late October 2024, Bailey emphasized the importance of "enhanced digital money" that can incorporate new features like smart contract programmability while maintaining its intrinsic safety and confidence. The Governor stressed that central banks should not be the sole drivers of innovation in digital currencies and encouraged banks to advance their efforts in this area.Bailey's comments highlight the Bank of England's aim to preserve the existing ratio between commercial bank money and central bank money in the digital realm, with commercial bank money currently representing 85% of payments made by the public in the UK. The Governor also expressed strong support for expanding and enhancing the use of wholesale digital money, particularly in areas like settlement and custody.

• These statements underscore the central bank's commitment to adapting to the evolving landscape of digital finance while maintaining stability and trust in the monetary system, as well as its plans to regulate systemic stablecoins to ensure they meet the tests of "singleness of money" and settlement finality.

Treasury Explores Tokenization of U.S. Securities in Landmark TBAC Presentation

• In a significant development, the U.S. Treasury's recent quarterly presentation to the Treasury Borrowing Advisory Committee (TBAC) on October 30, 2024, included a notable discussion on the tokenization of U.S. Treasuries. The presentation, titled "Unlocking Collateral Mobility through Tokenization," marks a pivotal moment in the government's approach to blockchain technology and its potential application to government securities.

• The advisory panel acknowledged the potentially substantial impact of tokenization on financial markets, while also suggesting that some form of central control might be necessary. This inclusion of cryptocurrency and tokenization topics in the Treasury's presentation demonstrates an elevated level of consideration for digital assets, signaling a shift in how these technologies are being viewed at the highest levels of financial policymaking. The discussion reflects the Treasury's growing interest in exploring how blockchain and distributed ledger technologies could modernize financial infrastructure, while also addressing potential risks and regulatory challenges.

Crypto Exchanges Expand Derivatives Offerings with New Licenses and Partnerships

• AsiaNext, a Singapore-based institution-only digital asset exchange, has successfully launched crypto derivatives trading, providing a secure venue for institutional investors. The platform offers reduced counterparty risk, capital efficiencies, and support for low latency trading. Meanwhile, Kraken has obtained a license from the Bermuda Monetary Authority to offer round-the-clock crypto derivatives trading, with over 200 different contracts available to clients in eligible jurisdictions.
• In Europe, Bitstamp has secured a MiFID MTF license from Slovenia's Securities Market Agency, allowing it to offer EU-regulated crypto derivatives products. This development is particularly significant as Robinhood, which recently acquired Bitstamp for $200 million, plans to leverage the license to create its own futures and options market for crypto assets in Europe. The move positions both companies to compete in the growing crypto derivatives market, which handles daily volumes exceeding $100 billion.

SWIFT Advances Digital Currency Integration with Global Trials and Interoperability Solutions