Moscow will roll out long-awaited Russian crypto regulation in July, allowing both retail and institutional investors to buy Bitcoin by mid-2027, according to the chief architect of a new financial law. A comprehensive legislative framework will be ready for State Duma lawmakers to vote on at the end of June, Anatoly Aksakov, the head of the State Duma’s Committee on the Financial Markets, told Russia’s Parliamentary Gazette. The law will include regulations for crypto exchanges, which currently operate ...

This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Laser Digital, the digital-asset spinoff from Japanese banking giant Nomura, has applied for a national trust bank charter with the Office of the Comptroller of the Currency, the company announced Tuesday. The company plans to offer custody of digital assets and U.S. government securities, spot trading and staking. It will not, however, take direct deposits or trad ...

Despite gold’s recent surge to record levels beyond $5,000 an ounce, a new gold competitor has emerged: tokenized gold. So what exactly is tokenized gold, and how does it compare with real gold? Also see the best gold exchange-traded funds to watch right now. What Is Tokenized Gold? Tokenized gold is exactly what it sounds like — digital tokens. Specifically, digital tokens traded, settled and deployed on blockchains but backed in value by real, physical gold. Recently, the market for these tokens has ...

Core Insights - The global landscape for crypto regulation is expected to become more defined as legislation transitions from draft to law, with countries that establish transparent rules likely to lead the industry [1] - The environment will shift from regulatory debates to execution and competition among jurisdictions to attract capital and legitimacy, with a trend towards increased cross-border coordination for market integrity and investor protection [2] Regulatory Developments - Global regulatory collaboration is accelerating, facilitating institutional adoption of cryptocurrency, with regulation reshaping markets and enabling responsible scaling of digital assets [3] - In the European Union, market participants are adapting to the Markets in Crypto-Assets (MiCA) regulation, while the U.S. faces delays in the CLARITY Act due to opposition regarding stablecoin yields [4] - The U.K. is moving towards a full authorization regime for crypto-asset activities, enhancing investor protections and establishing a dual oversight model for payment stablecoins [5] Industry Trends - The shift towards clearer rules may lead to higher compliance costs for crypto firms but could also unlock new products and deeper institutional participation [3] - The winners in the crypto space will be those who integrate compliance, resilience, and transparency into their core operations [6]

Group 1: Core Announcement - Coinbase Global Inc. supports Bermuda's initiative to become the world's first "fully on-chain national economy" [1] - The announcement was made at the World Economic Forum Annual Meeting in Davos, highlighting collaboration with Circle Internet Group Inc. [1][2] - The initiative aims to transform Bermuda's economy using digital asset infrastructure and enterprise tools across various sectors [1] Group 2: Educational and Technical Support - The initiative includes nationwide digital finance education and technical onboarding to facilitate the transition [2] - Bermuda Premier E. David Burt emphasized the acceleration of digital finance at the national level with support from trusted companies [2] Group 3: Leadership Perspectives - Coinbase CEO Brian Armstrong expressed excitement about empowering local businesses and institutions through an open financial system [3] - Circle CEO Jeremy Allaire also expressed enthusiasm for participating in this ambitious project [3] Group 4: Regulatory Framework - Bermuda established a clear regulatory framework for cryptocurrencies with the Digital Asset Business Act in 2018 [4] - Coinbase obtained a license to operate in Bermuda in 2023, indicating regulatory compliance [4] Group 5: U.S. Regulatory Efforts - Armstrong is engaging with U.S. lawmakers to establish a federal regulatory framework for digital assets [5] - He aims to discuss the benefits of cryptocurrency with world leaders and continue efforts on the cryptocurrency market structure bill [5] Group 6: Market Reactions - Coinbase withdrew support for the cryptocurrency market structure bill, leading to an indefinite postponement of the legislation [6] - Following this, Coinbase shares closed 0.78% higher at $241.15, while Circle shares rose 2.62% to $78.61 [6]

Core Insights - State Street is positioning itself as a bridge between traditional and digital finance, launching its Digital Asset Platform to support tokenized financial products [1][2][3] Group 1: Digital Asset Platform - The Digital Asset Platform includes wallet management, custodial services, and digital cash capabilities, designed to operate across public and permissioned blockchains [2] - The platform aims to support tokenized money market funds (MMFs), exchange-traded funds (ETFs), cash products, and stablecoins [2][4] Group 2: Strategic Vision - CEO Ronald O'Hanley emphasized that the financial system is entering a new phase of digitalization, focusing on reengineering traditional financial assets rather than cryptocurrencies [3][4] - State Street aims to enable more efficient movement of traditional assets like money market funds through blockchain technology [3][4] Group 3: Industry Context - Other major banks, such as JPMorgan, Goldman Sachs, and Citi, are also exploring blockchain's potential to transform legacy financial services [5][6] - These banks are developing their own digital asset platforms and testing tokenized financial products, indicating a broader industry shift towards digital finance [6] Group 4: Future Use Cases - State Street is preparing for future applications, such as settling securities using stablecoins, which would require capabilities for digital cash transactions [7]

Core Insights - Lloyds Banking Group has executed the first-ever Gilt purchase using tokenised deposits on a public blockchain in the UK, marking a significant milestone in digital finance [1] Group 1: Transaction Overview - The transaction involved Lloyds Bank PLC issuing tokenised deposits on the Canton Network, which is designed for regulated financial markets [2] - Lloyds Bank Corporate Markets utilized these tokenised deposits to purchase a tokenised UK Gilt issued by Archax [2] - Following the trade, Archax transferred the underlying funds back to its standard Lloyds bank account, demonstrating interoperability between blockchain and traditional banking systems [3] Group 2: Technology and Design - The Canton Network's public-but-private design was crucial, allowing broader industry participation while ensuring confidentiality and compliance, essential for institutional adoption [4] - Tokenisation enables instant settlement and atomic transactions, reducing counterparty risk, improving liquidity, and shortening settlement cycles, addressing inefficiencies in traditional capital markets [6] Group 3: Benefits of Tokenised Deposits - Tokenised deposits allow businesses to transact on blockchain networks while maintaining characteristics of traditional bank deposits, such as interest accrual and regulatory protections [7] - Firms can access and trade a wider range of assets across both traditional and on-chain markets using a single cash instrument [7] - Additional benefits include real-time settlement, smart contract automation to mitigate operational risk, and enhanced transparency through distributed ledger records [8] Group 4: Future Implications - The Gilt purchase aligns with the UK government's exploration of issuing digital versions of traditional securities, showcasing how tokenisation can support this initiative [5] - Lloyds' transaction builds on previous digital asset collaborations with Archax, indicating a pathway to more efficient financial markets without compromising traditional banking safeguards [9]

Core Viewpoint - StoneX Group Inc. has secured its Crypto-Asset Service Provider license under the EU's Markets in Crypto-Assets Regulation, enhancing its regulated digital asset capabilities and expanding its services across the European Union [1][2][3]. Group 1: Company Developments - StoneX Digital has been operating as a Virtual Asset Service Provider for over a year and will now offer digital asset execution and custody under stringent regulatory frameworks [3]. - The authorization aligns with StoneX's long-term strategy to help clients integrate new products and technologies into their existing operating and investment frameworks [4]. - StoneX Digital was launched in June 2022 with a mission to provide institutional clients with sophisticated digital asset trading tools and market access [4]. Group 2: Market Position and Strategy - The company aims to reduce friction between traditional and digital finance environments, allowing clients to focus on their investment strategies and corporate goals [4]. - StoneX's robust product portfolio and global scale provide the security and reliability that financial institutions demand as they seek regulated entities for their digital asset needs [4]. - StoneX Group Inc. serves over 80,000 commercial, institutional, and payments clients, along with more than 260,000 retail accounts across over 80 offices on six continents [5].

Core Viewpoint - The U.S. risks losing its dominance in digital finance to China due to proposed stablecoin regulations that prohibit interest payments on U.S. dollar-pegged stablecoins, while China is enhancing the appeal of its digital yuan by allowing interest payments starting January 1, 2026 [1][2]. Regulatory Framework - The current legislation, known as the GENIUS Act, restricts U.S. stablecoin issuers from paying interest directly to holders, creating a competitive disadvantage for U.S. stablecoins compared to China's e-CNY [2][3]. Competitive Landscape - China's decision to allow interest on the e-CNY transforms it into a savings asset, increasing its attractiveness for both domestic and international users, which could undermine the position of non-interest-bearing U.S. dollar stablecoins [2][5]. Industry Debate - The ongoing debate features crypto advocates arguing that interest restrictions hinder innovation, while traditional banking institutions, represented by the American Bankers Association, advocate for strict enforcement of the interest ban to protect traditional banking [4]. Global Implications - The conflict over digital currency policies is not just about consumer rewards; it concerns the future of global digital settlement, with interest-bearing currencies like the e-CNY posing a challenge to the utility of U.S. dollar stablecoins as reserve assets [5][6]. Potential Consequences - If U.S. digital dollar policies render it less attractive, there is a risk that capital and innovation will shift towards platforms offering yield, potentially diminishing the dominance of USD-backed stablecoins in on-chain value transfer and impacting liquidity and trading volumes [6].

Core Insights - Payments banks in India accept deposits but cannot lend, instead investing customer deposits in government securities to generate modest interest and occasional gains [1] - They earn fees and commissions from various activities including digital payments, remittances, and micro-ATM transactions, contributing to their revenue model [2] Industry Overview - There are six payments banks in India, collectively holding only 0.1% of total bank deposits, yet they have managed to survive and serve over 250 million customers, primarily in rural and semi-urban areas [3] - Payments banks were established to enhance financial inclusion, utilizing the Jan Dhan-Aadhar-Mobile (JAM) framework to create a "phygital" model that combines digital banking with physical customer touchpoints [6] Customer Engagement - Payments banks have successfully improved financial inclusion by leveraging trusted local brands and agents, particularly reaching women customers who prefer familiar local representatives [7][19] - They provide accessible financial services through neighborhood customer service points, making banking less intimidating for first-time users [8] Brand Trust and Recognition - High customer acceptance is attributed to the backing of well-known brands like Airtel and Jio, which are among India's top valuable brands [9] - Payments banks have seen rising transaction volumes, comparable to large traditional banks, despite their relatively short existence [10] Business Model and Growth - Payments banks face regulatory limitations, such as a cap on deposits and restrictions on offering fixed deposits, yet they have adapted by focusing on their strengths to acquire customers [13] - Airtel has dominated the National Common Mobility Card market, while Fino and NSDL excel in micro-ATM and AePS segments, crucial for remote areas [14] Financial Products and Innovations - New product offerings, such as Jio Payments Bank's 'Savings Pro' account, attract customers by providing liquidity and returns, integrating them into a larger financial ecosystem [15] - Payments banks outperform other bank categories in terms of deposit value owned by women, with initiatives to support female customers and agents [18][19] Risk Mitigation and User Trust - Payments banks serve as a gateway for users hesitant about digital banking, with campaigns like Airtel's 'safe second account' promoting safer transaction practices [22] - They resonate particularly with elderly and less tech-savvy users, offering a low-risk entry point into digital finance that emphasizes familiarity and trust [23]