The tokenisation of physical assets refers to the creation of a tamper proof, unique and legally enforceable digital representation of a physical object. It opens a world of opportunities as the physical objects which were earlier consigned to specific markets are now available to global investors. The earliest example of the tokenisation of an asset was when a $30 million luxury Manhattan condo development was tokenised on Ethereum. Ernst and Young in the paper ‘Tokenisation of Assets – Decentralized Finance’ state that “the process of tokenisation creates a bridge between real-world assets and their trading, storage and transfer in a digital world” (https://assets.ey.com, 2020).
Fnality is taking serious action to address unconscious bias and a major focus for this quarter has been to support the 2023 International Women's Day’s theme #EmbraceEquity.
Fnality and HQLAX demonstrate together with Banco Santander, Goldman Sachs and UBS, the first cross-chain repo swap pilot across Corda and Enterprise Ethereum, paving the way for the settlement of intraday transactions
In the previous parts of this series, we’ve been looking at the regulation needed in order to encourage the adoption of stablecoins for retail payments (read Part 1 and Part 2 here).
Notwithstanding the similarities between bank deposits and stablecoins, there are some notable differences. For instance, a stablecoin issuer can allow the stablecoin to be listed on (crypto) exchanges and trading venues. In contrast to stablecoins, bank deposits are not tradable, i.e. there is no secondary market for bank deposits. In practice, issuers of the stablecoins are also operating the exchanges where their stablecoins are traded alongside other cryptoassets. But stablecoins can also be listed on...
Since the first discussions over a global stablecoin started in 2019, international standard-setting bodies have been developing and refining recommendations for the regulation, supervision and oversight of global stablecoin arrangements (FSB 2020 and FSB 2022). In the first blog of this series, we looked at the issuance and redemption of stablecoins, but now we want to focus on the risks and benefits from the opportunity to make payments with stablecoins, and how this should be regulated.
In 2019, when a Facebook-led consortium announced its plans to launch the global stablecoin ‘Libra’, many – including politicians and high-level representatives of the G7 - thought that a new international financial system, arguably outside of the realm of regulators was about to emerge. This conclusion was mainly rooted in a mindset that the blockchain technology underpinning stablecoins would compromise the reach and effectiveness of regulators. In hindsight, such fears have turned out to be unfounded. Even though the Libra project has been wound down, the international standard-setting bodies under the auspices of the Financial Stability Board (FSB) have been developing and refining...
Fnality and Finteum have executed the first cross-chain FX settlement transaction test across the two platforms, reducing cross-currency settlement to T+0
We are delighted to welcome Nomura as a new shareholder, supporting our vision for a regulation-first, real-time, wholesale payments system.
Becoming a father often becomes a conflict between your work responsibilities and family needs, however at Fnality the situation turned out to be different.
In our two previous blog posts on stablecoins and CBDCs, we have discussed why the speed of market acceptance of stablecoins has constituted a financial stability concern for oversight authorities, pushing them to speed up their discussion around building appropriate legal frameworks to regulate new payment solutions.
We have also explored the acceleration of CBDC discussions in response to the perceived threat to existing currencies that central bankers see in stablecoins.
In the third and final blog post of this series, we highlight that several traditional market players have demonstrated their intention to explore and enter the stablecoin/DeFi space as a competitive response.