Fraud detection and prevention are among the many promises blockchain technology holds. But unlike certain other far-from-realized promises, the security of on-chain digitization is finding real use in the real world.
On Tuesday (July 30) California’s Department of Motor Vehicles (DMV) digitized tens of millions of car vehicle titles registered in the state using blockchain technology, in part to serve as a deterrent against lien fraud.
Now, up to 42 million vehicle titles exist on Ava Labs’ Avalanche blockchain as part of an effort by the state to modernize the title transfer process for California drivers and DMV representatives.
“As consumers continue to demand more automation and expect the ability to transact life online, widespread adoption of secure systems is possible with blockchain infrastructure,” said Andrew Smith, president of Oxhead Alpha, one of the core technology providers involved in the initiative.
“These systems have historically been accessible by large financial institutions but have done little for regular citizens. We believe that ultimately, value transfer will be embedded within the system itself proving the technology works at scale and enables other jurisdictions to implement similar approaches.”
“Blockchains are the most advanced tool any organization can leverage to maximize efficiency, maintain compliance and protect consumer data — vital components for a government serving its constituents,” added John Wu, president of Ava Labs.
Californians will be able to access and claim their vehicle titles through a mobile app expected to be available by early 2025.
And that was just one data point from a full week of crypto and Web3 news, as the sector looks to derive greater impact from blockchain’s novel applications.
Read more: Making Sense of Why FIs Are Tokenizing Real-World Assets
In a sign of the changing times, with blockchain finding a wider embrace across the financial sector, the Bank of England announced Tuesday that it is conducting a new series of experiments with central bank digital currencies (CBDCs) for retail use. The bank said it will work with the Treasury, Payments Systems Regulator and the Financial Conduct Authority in its experiments to ensure that all forms of currency, digital or otherwise, are interchangeable with each other.
PYMNTS Intelligence reveals that blockchain has numerous potential benefits to serve the needs of regulated industries, including finance, healthcare, identity verification and supply chain management.
And last Tuesday (July 23), news broke that two Swiss banks — Amina Bank and Sygnum Bank — had recently launched real-time payment and settlement networks, targeting a gap left by the closure of Silvergate Exchange Network (SEN) and Signature Bank’s Signet platform. The aim is to help crypto companies “execute trades and settle positions more quickly.”
That’s not all. State Street is also reportedly looking at a number of options for settling payments on blockchain. The financial services and banking firm is considering creating its own stablecoin, creating its own deposit token, joining digital-cash consortium efforts, and developing settlement options through blockchain payment startup Fnality, in which it has an investment.
State Street would join other companies that are exploring or implementing crypto settlement, including PayPal, which introduced its own stablecoin; Visa and Mastercard, which enable stablecoin-based settlement; and JPMorganChase, which is exploring deposit tokens.
Additional research by PYMNTS Intelligence shows “that using cryptocurrencies for cross-border payments could be the winning use case that the sector has been looking for.”
Read more: Crypto’s Three Priorities for 2024: Interoperability, Acceptance, Regulation
Still, despite the potential for a “crypto president,” the regulatory environment for blockchain within the U.S. remains relatively challenging and tumultuous.
Online betting service DraftKings said Tuesday that is closing down its 3-year-old non-fungible token (NFT) marketplace, along with Reignmakers, a fantasy sports game based around NFTs, due to “recent legal developments.”
While the company did not specify the nature of the legal developments, a report noted that DraftKings is the subject of a federal class action lawsuit claiming the company’s NFTs are unregistered securities.
DraftKings isn’t alone in its NFT troubles. Earlier this year, GameStop, which had introduced an NFT marketplace in the summer of 2022, decided to exit the non-fungible token business, citing the ongoing regulatory uncertainty around the larger cryptocurrency market.
Meanwhile, the U.S. Treasury Department released an assessment in May which found that NFTs are “highly susceptible” to theft and use in fraud and scams.
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