The solution, DBS Treasury Tokens, will enable Ant International, a provider of digital payment and financial services solutions, to use the digital form factor to achieve instant, multicurrency treasury and liquidity management on DBS’ permissioned blockchain for its entities across multiple markets, the companies said in a Tuesday (Aug. 13) press release.

In addition, because DBS’ permissioned blockchain is integrated with Ant International’s treasury management solution, Whale, Ant International will be able to seamlessly manage its intragroup liquidity around the clock, according to the release.

“This milestone with DBS is an important step forward in addressing challenges like reducing costs and transaction risks for cross-border payments,” Kelvin Li, head of platform tech at Ant International, said in the release.

DBS Treasury Tokens aims to solve challenges faced by large corporates like Ant International that operate several entities across multiple markets and need to manage payments, collections, funding needs and cash positions across time zones and currencies, according to the release.

By reducing the settlement of intragroup transactions, the solution optimizes intragroup liquidity and working capital and provides corporate treasurers with greater visibility, predictability and control over the group’s cash position, per the release.

“This new capability comes at a time when the treasury needs of businesses are evolving to meet the rise of eCommerce and on-demand services on a 24/7 basis,” Lim Soon Chong, group head of global transaction services at DBS Bank, said in the release. “DBS Treasury Tokens and our partnership with Ant International demonstrates how corporates can seize such opportunities with full confidence that their liquidity management capabilities can scale in tandem.”

This pilot stems from what DBS learned from its participation in two projects led by the Monetary Authority of Singapore: Project Orchid, which aims to develop the technology necessary for a digital Singapore dollar, and Project Guardian, which brought together policymakers and the financial industry to use asset tokenization to enhance the liquidity and efficiency of financial markets, according to the release.

DBS Treasury Tokens is one of the industry applications tested under Project Guardian, per the release.

The post DBS and Ant International Test Blockchain-Powered Treasury Management Solution appeared first on PYMNTS.com.

The $943 billion projected market by 2032 has sparked a debate between public and private blockchains for regulated sectors like finance and healthcare.

Historically, private blockchains, controlled by single entities or consortia, have been favored for their data privacy and managed environments. However, high costs, scalability issues and security risks due to limited access have hindered their adoption.

The PYMNTS Intelligence report “Blockchain’s Benefits for Regulated Industries” highlighted how public blockchains, known for their decentralized nature, are gaining traction. Advancements have bolstered their privacy and security features, challenging the dominance of private networks. As these technologies mature, public blockchains could become a preferred option for regulated industries, broadening the technology’s reach beyond digital currencies.

Public Blockchains’ Emerging Edge Over Private Chains

Private blockchains have been favored in regulated industries for their controlled environments, offering restricted access and managed data privacy. These systems, however, face drawbacks, including infrastructure costs, scalability issues and limited interoperability due to their closed nature. Security concerns also arise from their reliance on participant trust and consensus mechanisms.

Public blockchains, by contrast, offer advantages. Their decentralized architecture ensures greater transparency and security, as transactions are visible to all participants and immutable without consensus. Advancements have improved public blockchains’ scalability and cost-effectiveness, reducing the need for expensive infrastructure.

Features such as confidential and reversible transactions and asset tokenization have been introduced, addressing historical privacy and security concerns. Additionally, public blockchains support interoperability with other networks and systems, encouraging broader integration. Lower barriers to participation also encourage wider adoption and innovation.

Innovations Bring Private Blockchain Benefits to Public Networks

Developments in public blockchain technology address the needs traditionally met by private blockchains. For example, token extensions on the Solana public blockchain are introducing features such as confidential transactions, reversible transactions and global account management.

Solana’s token extensions allow for the issuance of stablecoins and the tokenization of real-world assets like stocks, real estate and commodities. These features enhance regulatory compliance and improve liquidity and fractional ownership opportunities. By integrating these functionalities directly into the tokens, public blockchains offer privacy and security measures that were previously associated with private networks.

Enterprises Embrace Public Blockchains for Compliance

As enterprises become more familiar with public blockchain technologies and their enhanced privacy and security features, the adoption of public blockchains is expected to grow. This trend suggests that public blockchains will play a role in regulated sectors, offering a practical solution that meets compliance and operational needs.

The landscape of blockchain technology in regulated industries is evolving, with public blockchains gaining recognition for their potential benefits. Innovations like confidential transactions, reversible transactions and the tokenization of real-world assets are already addressing key privacy and security concerns traditionally associated with private blockchains.

Enhanced consensus mechanisms have improved efficiency, while greater interoperability with other networks has broadened their applicability. These developments make public blockchains an alternative to private networks, potentially leading to wider adoption and integration in sectors like finance and healthcare.

Public blockchains provide a transparent ledger and can adapt to various regulatory requirements, positioning them as a viable solution for managing complex transactions and ensuring data integrity. Their lower barriers to entry and minimal infrastructure needs make them more accessible, encouraging innovation and collaboration across different sectors.

The post Solana Says Regulated Industries Are Primed for Blockchain Use Cases appeared first on PYMNTS.com.

This collaboration aims to accelerate aelf’s transformation into an AI-enhanced blockchain and extend ChainGPT’s AI-powered infrastructure for the blockchain industry into new markets, the companies said in a Wednesday (Aug. 7) press release.

“This partnership will empower incumbent and new developers with advanced tools to create more dynamic and responsive applications and provide our communities with smarter, more intuitive interaction capabilities,” Brian Liang, chief operating officer of aelf, said in the release.

Ilan Rakhmanov, founder and CEO of ChainGPT, said in the release: “Together we’re empowering developers with advanced, scalable solutions and driving innovation in the Web3 space.”

The first phase of the partnership will focus on the integration of ChainGPT’s AI chatbots across aelf’s website, Telegram and Discord platforms, according to the release. These chatbots will be trained on aelf’s developer documentation and strategic initiatives, will serve both technical and retail users, and will manage everything from simple user inquiries to complex development questions.

In the second phase, aelf will integrate ChainGPT’s decentralized AI solutions into its blockchain infrastructure, the release said. These solutions include NFT and smart contract generators, AI trading assistants and an AI-focused launchpad.

The companies will encourage developers who are building decentralized applications (dApps) on aelf to integrate these AI tools into their platforms, and they will provide comprehensive support to those who do so, per the release.

“This partnership marks a significant milestone in the adoption of AI technologies in the blockchain space, setting a new standard for how AI can enhance the scalability and functionality of blockchain networks,” the press release said.

In another project, ChainGPT launched a platform called GT Protocol in January, saying it brings AI-powered auto-trading to the world of cryptocurrencies.

Made possible through a strategic partnership with ChainGPT Pad, a launchpad and incubator supporting promising Web3 startups, this platform offers a non-custodial setting to access CeFi, DeFi and NFTs.

In another pairing of AI and blockchain technology, Lockchain.ai debuted an AI-powered blockchain risk management platform in April, saying it offers “automated risk management solutions to traders, investors and fund managers in the blockchain ecosystem.”

The post Aelf and ChainGPT Partner to Add AI Chatbots to Blockchain appeared first on PYMNTS.com.

The collaboration is designed to accelerate blockchain and digital assets innovation in the United Arab Emirates (UAE), Ripple announced Wednesday (Aug. 7), connecting developers with the DIFC Hub, home to more than 1,000 growth-stage tech companies, digital labs, venture capital outfits, regulators and educational entities.

“The UAE is one of the most advanced jurisdictions globally when it comes to offering regulatory clarity for licensed firms to offer virtual asset services and fostering an environment in which the next generation of financial innovation can flourish,” Ripple CEO Brad Garlinghouse said in a news release.

“Our partnership with the DIFC Innovation Hub promises to drive the adoption of blockchain technology in the region as the XRPL continues to be a leading blockchain for the region’s start-ups and scaleups building real use cases.”

According to the release, Ripple has committed one billion XRP to accelerate development and new global use cases on its XRP Ledger blockchain, providing financial, technical and business support to developers.

“Since announcing the 1B XRP Fund in late 2021, Ripple has funded over 160 teams building on the XRPL, reaching 47 countries to date, across a wide range of use cases spanning decentralized finance (DeFi), to Real World Assets (RWA), and other groundbreaking new solutions,” the release said.

The partnership comes as American blockchain/crypto firms look to countries like the UAE amid pressure from the U.S. Securities and Exchange Commission (SEC).

“What we are seeing, where it’s the UK, Japan, Singapore … even the European Union, more than two dozen countries have come together to provide a framework for crypto regulation,” Garlinghouse told Bloomberg News last month at the Republican National Convention.

“It’s frustrating that we as a country can’t get that framework in place. And instead, we have this interminable litigation coming from the SEC that really isn’t solving the problem.”

Meanwhile, research by PYMNTS Intelligence and Visa finds that the UAE is home to a digitally-engaged populace, with 89% of retail shoppers — and 45% of grocery shoppers — using digital tools while browsing in physical stores.

“And, when surveyed about the quality of their digital shopping features, respondents shared what turned out to be the second highest level of customer satisfaction among the six countries we studied,” PYMNTS wrote in June. “This likely explains why 71% of UAE consumers used digital features to enhance their most recent shopping experience.”

The post Ripple Launches Effort to Promote Blockchain Innovation in UAE appeared first on PYMNTS.com.

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

Blockchain for Financial Sector

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

Legal Snarls

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.

The post California Puts Car Titles On-Chain in Push for Blockchain Usability appeared first on PYMNTS.com.

One question that arises for regulated enterprises, however, is whether public or private blockchain is preferable for these institutions. Indeed, past opinion has sometimes advised private, permissioned blockchain for such use cases to ensure maximum data privacy and protection, yet private chains come with their own set of challenges that can defeat their benefits. There are advocates on both sides, but recent innovations on public blockchain — offering all the security features of private chains plus the many benefits of public chains — may soon render this question obsolete.

• Regulated Industries Offer Fertile Ground for Blockchain
• Public vs. Private Blockchain for Regulated Industries
• Public Blockchain: New Functionalities for Regulated Industries
• Secure and Stable Public Blockchain Solutions for Enterprises

Regulated Industries Offer Fertile Ground for Blockchain

Blockchain has numerous potential benefits to serve the unique needs of regulated industries, including finance, healthcare, identity verification and supply chain management, to name a few.

Blockchain offers elegant solutions to the challenges faced by regulated industries.

Regulated industries present special challenges that blockchain is ideally equipped to manage. In general, regulations exist to offer protection to industry participants, typically around data or money movement. Blockchain’s transparency and traceability have the capacity to boost trust and security while also increasing the speed and efficiency of operations.

For example, in healthcare, blockchain’s distributed ledger technology can be leveraged to streamline centralization of patient records while ensuring that only authorized parties have access to their confidential data. Blockchain also offers financial services greater transactional speed and security, as well as the elimination of costly intermediaries, as in the case of cross-border payments. The technology facilitates faster and more efficient transactions compared to traditional banking methods, and its programmability through smart contracts allows for automated transactions and regulatory compliance.

Blockchain is becoming a regular player in finance.

As the digital economy expands, the need for a stable, efficient and secure form of digital money is becoming increasingly evident. Both stablecoins and deposit tokens — digital representations of traditional bank deposits issued by regulated financial institutions — are gaining favor for this purpose. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are often subject to volatility, both stablecoins and deposit tokens are backed by fiat currency, making them as stable as traditional money or bank deposits. Some of the world’s largest banks are envisioning tokenized assets as crucial to the future of the global digital money landscape.

Public vs. Private Blockchain for Regulated Industries

Past preconceptions have favored private over public blockchain for regulated industries due to strict data privacy requirements, but private blockchain has drawbacks that can make it untenable — as well as less secure than public chains.

Source: The Value Exchange. DLT in the Real World Survey Key Findings. 2024. https://www.broadridge.com/article/capital-markets/dlt-in-the-real-world-2024. Accessed July 2024.

The benefits of private blockchain for regulatory industries are subject to debate.

The inevitable question that arises most frequently for regulated enterprises considering entry into blockchain is whether public or private chains are better suited for their purposes.

Private blockchains are permissioned networks where access is restricted to participants who have been granted permission to join, with the consensus process generally controlled by a single organization or consortium. Because the public at large does not have access to the code empowering the network, proponents argue that private blockchain is the better candidate for facilitating regulated enterprise transactions. Indeed, regulatory pressure has resulted in nearly two-thirds of the enterprise blockchain ecosystem consisting of private blockchains. However, what these arguments miss is that public blockchain is actually very secure, and there are downsides to using private chains that can make them unsustainable — or unusable altogether.

Private blockchain has fundamental disadvantages compared to public blockchain.

Some of the drawbacks of private blockchain for enterprises include the following:

High cost: Establishing and maintaining a private blockchain network can be extremely expensive, requiring a high number of resources related to infrastructure, development and continuous operational costs. Indeed, some sources argue that private blockchains are, in essence, “cumbersome databases,” with the costs of servers, staffing and network infrastructure all falling to the controlling entity’s responsibility. These costs often make private blockchain networks impractical or untenable over time, not just for mid-sized and smaller companies but even for top global businesses such as IBM.

Difficulty with scalability and interoperability: Private blockchains may encounter scalability issues as they increase in size and complexity, especially if the underlying technology cannot adequately handle a large volume of information. One source notes that private blockchain is substantially slower and less scalable than public blockchain. Moreover, because private chains are generally built on proprietary technologies, interoperability among many institutions is often impossible to achieve, with costs making it infeasible for most private owners.

Security issues: The security of a private blockchain largely depends on the chosen consensus mechanism and the trustworthiness of participants. A malicious or compromised participant could corrupt the entire network. Ironically, some even argue that private blockchains’ exclusive nature can make them more vulnerable to bad actors than public networks. Relatedly, private blockchains’ lack of transparency through restriction to authorized participants can, in a worst-case scenario, raise the potential for data manipulation.

Public Blockchain: New Functionalities for Regulated Industries

Public blockchain is fast, inexpensive and, ultimately, very secure. Moreover, innovative token extensions are bringing all the benefits of private, permissioned networks to public blockchain.

Public blockchain’s benefits include those of private blockchain — and more.

Public blockchains consist of decentralized networks that permit anyone to join, view transaction history and verify data integrity through a consensus mechanism, such as “proof of work” on Bitcoin or “proof of stake” on networks like Ethereum or Solana. Proponents of public blockchain also add that, contrary to its name, it is very private. Indeed, in its original conception and design, blockchain’s intrinsic security arises from the anonymity of the parties engaged in any given transaction. Blockchain’s immutable and permanent record of transactions ensures this security, and because this record is swiftly validated by multiple independent data centers around the world, consensus is quick, nearly ruling out data tampering. In addition, integrated encryption and other forms of obfuscation further enhance public blockchain’s innate security principle.

On Solana, token extensions are opening up new use cases on public blockchain.

Moreover, innovations on public blockchain are rendering the public-versus-private debate itself moot. Token extensions, a new token issuance program, for example, are a turnkey innovation on the Solana public blockchain that can apply security controls to the network akin to those of permissioned, private blockchains. Some of the features enabled by these “extensions” include confidential transfers, reversibility and the ability to white- or blacklist accounts globally. Because these features are embedded into the token itself, there is no need for third-party smart contracts to enable this type of functionality. This innovation is currently making new use cases possible on public blockchain for regulated enterprises, such as the issuance of stablecoins for payments and the tokenization of real-world assets, including stocks, bonds, real estate, commodities and even artwork. Tokenization of these assets allows for higher liquidity and fractional ownership, making these investments more accessible to those who might not otherwise be able to partake of these opportunities.

There is a ‘momentum shift’ occurring among enterprises toward public blockchain adoption.

An HFS Horizons report noted a recent “momentum shift as enterprise focus pivoted toward public blockchains,” with ongoing innovation driving further growth in their adoption by regulated enterprises. Researchers noted that while highly regulated enterprises frequently reported choosing private blockchains due to regulatory pressure, firms are becoming increasingly comfortable with public blockchain as innovation unlocks new levels of privacy. The report concludes that enterprises will turn more and more to public blockchains to achieve scalability in years to come.

Secure and Stable Public Blockchain Solutions for Regulated Industries

Innovations such as the Solana network’s token extensions are indicative of a paradigm shift in how assets are being developed, managed and traded. By boosting security measures, ensuring regulatory compliance and encouraging the tokenization of real-world assets, this innovation could allow blockchain to revolutionize a number of regulated industries.

As the integration of blockchain continues to bridge the gap between traditional financial and decentralized ecosystems, this technology can help pave the way to a more efficient global economy — one that’s based on transparency, security and financial inclusion.

Source: PayPal USD. PYUSD Launches on Solana: The Next Phase of Adoption. May 29, 2024. https://pyusd.mirror.xyz/TpEwPNybrwzPSSQenLtO4kggy98KH4oQRc06ggVnA0k. Accessed July 2024.

The post Blockchain’s Benefits for Regulated Industries appeared first on PYMNTS.com.

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, Bloomberg reported Wednesday (July 17), citing an unnamed source.

State Street did not immediately reply to PYMNTS’ request for comment.

With these efforts, State Street would join other companies that are exploring or implementing crypto settlement, according to the report.

These companies include PayPal, which introduced its own stablecoin; Visa and Mastercard, which enable stablecoin-based settlement; and JPMorganChase, which is exploring deposit tokens, the report said.

Earlier this year, State Street integrated its team members focused on digital assets into its overall business, seeking closer ties between digital assets and traditional finance, per the report.

When State Street reorganized its digital assets division in January, it was reported that most of the division’s employees moved to other units of the company and that the company continues to provide clients with services and market infrastructure for digital assets.

In a statement provided to PYMNTS at the time, State Street said: “In an effort to better deliver our digital expertise and solutions to clients, we have brought together our traditional custody and digital finance in a seamless interoperable customer experience. This approach is reducing fragmentation for clients and is making the digital transition as easy as possible for investors.”

In March, it was reported that State Street was one of more than three dozen participants in a recently completed pilot project that looked to reframe assumptions about the use of blockchain-based applications within traditional finance.

The project, called the Canton Network, brought together 15 asset managers, 13 banks, four custodians, three exchanges and a stablecoin issuer to explore the potential of a privacy-enabled open blockchain network allowing for real-time settlement and immediate reconciliation across counterparty systems.

It proved that blockchain could be leveraged to streamline and synchronize financial applications while adhering to regulatory asset control, security and data privacy requirements.

The post Report: State Street Considering Several Blockchain-Based Projects appeared first on PYMNTS.com.

Blockchain technology and cryptocurrencies are, well, pretty much the opposite, relying instead on cryptographic algorithms and decentralized consensus mechanisms to secure transactions.

But despite the sector’s troubled youth, as the blockchain and digital asset space matures, major banks, asset managers and payment processors are exploring and adopting blockchain technology to enhance their services, increase transparency and reduce costs.

On Monday (July 15) BlackRock CEO Larry Fink told CNBC: “My opinion five years ago was wrong. Here’s my opinion today: I believe in the opportunity today. I believe bitcoin is legitimate.”

If the chief of the world’s largest asset manager is espousing those views, then it’s clear that the increasing integration of blockchain by traditional financial institutions may even suggest a growing acceptance that could lead to more robust and secure applications in the future.

Each week, PYMNTS rounds up the top crypto and Web3 news, updates and announcements for our readers, tracking the key data points along the crypto sector’s journey toward reshaping the future of finance, payments and digital commerce.

Here’s what you need to know.

The Regulatory Landscape Surrounding Crypto is Shifting

Adding to the complexity of blockchain adoption is the evolving regulatory environment for the sector.

Governments and regulatory bodies worldwide are still grappling with how to effectively regulate this new asset class. Regulatory approaches vary significantly across jurisdictions, creating a patchwork of rules and guidelines that businesses must navigate. In some regions, stringent regulations aim to curb illicit activities and protect investors, while in others, more permissive approaches seek to foster innovation and growth.

Still, as PYMNTS reported, the Republican party is leaning on crypto as a policy pillar for the upcoming 2024 election — and Donald Trump’s pick for vice president, J.D. Vance, has maintained a positive view on the digital asset sector throughout his political career, and voted as a senator accordingly.

Elsewhere, the Supreme Court’s recent Chevron decision could have implications for the crypto space and the degree of power federal regulatory agencies, including the Securities Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), have to oversee it.

Crypto Onramps Continue to Make Institutional Inroads

As PYMNTS reported Monday, Visa has teamed with WireX to promote the use of digital currencies in Europe and the U.K. The partnership includes the debut of Wirex Pay, a “modular Zero Knowledge (ZK)” payment chain, to simplify both traditional and cryptocurrency transactions, part of a broader project by Wirex and Visa to develop projects that integrate blockchain technology within traditional financial systems.

Last Thursday (July 11), cryptocurrency exchange Coinbase introduced a centralized hub for monitoring onchain activity. The Coinbase Wallet web app lets users explore, manage and engage with people, communities and businesses onchain, accessible on both desktop and mobile devices.

Also on Thursday, PYMNTS unpacked how the competition between instant payment systems and cryptocurrencies, particularly stablecoins, highlights a broader shift toward faster, more efficient financial transactions. Each offers a unique approach to solving the inefficiencies of traditional banking systems, but their coexistence raises questions about the future of financial transactions.

And in another announcement that same Thursday, Mastercard and Canadian FinTech Nuvei said they’ve teamed to help consumers turn digital assets into fiat currency.

“This new functionality provides a bridge between digital and traditional finance that can be spent via Mastercard’s global network,” the companies said in a news release. “This off-ramping solution is integrated directly into Nuvei’s modular payment platform, delivering a simple, secure user experience.”

According to the release, the off-ramping lets consumers convert a range of supported digital assets into fiat currency. From there, they can then transfer the funds to their eligible Mastercard in near real-time via Mastercard Move’s money movement capabilities, with no need to go through third-party exchanges or money service businesses.

Read more: Payments, Penalties and TradFi Adoption Define This Week in Web3

Miscellaneous Marketplace Moves

On Tuesday (July 16), it was announced that the crypto exchange Kraken is now soccer team Tottenham Hotspur’s first official crypto and Web3 partner, with the goal of boosting fan engagement and increasing awareness about cryptocurrency.

At the same time, PYMNTS covered Wednesday (July 17) how cryptocurrency miners are reportedly scrambling to boost their revenues by forging deals with AI (artificial intelligence) developers.

Crypto miners operate vast, powerful computing sites and have struggled to turn a profit due to high energy costs and reduced rewards for mining. AI firms need a lot of energy and computing infrastructure, both of which crypto miners can offer, along with a better proposition than AI firms building their own high-performance computing data centers.

And, as Reuters reported Tuesday, Craig Wright — an Australian computer scientist who has long claimed to be the anonymous inventor of bitcoin — is now facing a criminal investigation in Britain for alleged perjury after he was found to have repeatedly lied and forged documents to support his false claim.

The post Web3 This Week: BlackRock CEO Calls Bitcoin ‘Legitimate,’ Mainstream Off-Ramps Grow appeared first on PYMNTS.com.

“In the rapidly evolving, decentralized world of crypto, keeping track of your onchain activities can be hard,” the company said in a Thursday (July 11) blog post. “Today, many people use manual spreadsheets and need to open multiple browser tabs to track their assets holistically. Many people also manage several crypto wallets, and until now, achieving a comprehensive view of all their assets in one place has been a challenge.”

In addition, many desktop users are limited by the “small viewport” of browser wallet extensions, all of it adding up to a need for a unified view of transactions, according to the post.

The Coinbase Wallet web app lets users explore, manage and engage with people, communities and businesses onchain, accessible on both desktop and mobile devices, per the post.

“Discover the latest NFT mints, seamlessly view and trade across all your wallets, and access all your crypto assets in a single, full-screen, streamlined interface,” the blog post said. “This launch complements our recent introduction of smart wallet, designed to simplify your entry into the onchain world, allowing new users to start without the need to install any extension or mobile app.”

Meanwhile, PYMNTS wrote last week about the challenges facing the wider adoption of cryptocurrencies, including issues surrounding scalability and interoperability.

“Effective solutions will be instrumental in the widespread adoption of blockchain technology,” the report said. “By enabling faster and cheaper transactions, these advancements can enhance the user experience and open up new use cases for blockchain.”

To that end, Stripe and Coinbase teamed up in June to expand the worldwide embrace of cryptocurrency and provide faster, less costly financial infrastructure.

Coinbase’s efforts to make crypto trading easier to track are happening as crypto hackers seem to be stepping up their efforts.

Last week saw the release of a report from blockchain data firm TRM Labs that showed hackers stole $1.38 billion by mid-2024, up from $657 million at the same point last year.

For all PYMNTS digital transformation coverage, subscribe to the daily Digital Transformation Newsletter.

The post Coinbase Debuts Wallet App as Hub for Onchain Activity appeared first on PYMNTS.com.

The European Union’s (EU) landmark Markets in Crypto-Assets Act (MiCA) framework is now live, and Web3 companies are already complying, a fact which industry observers believe could represent the start of the mainstream growth and adoption phase of digital assets.

But there is still a perception among some businesses and consumers that cryptocurrencies are primarily associated with illegal activities and speculation. This negative perception can be a barrier to broader acceptance.

While blockchain technology is secure, the broader ecosystem has been plagued by hacks, scams and thefts. This undermines confidence and adds an extra layer of risk for businesses considering accepting cryptocurrencies. Additionally, the regulatory environment for cryptocurrencies is still evolving.

Different countries have different regulations, and in some cases, cryptocurrencies are outright banned. This creates uncertainty and risk for businesses considering adoption.

Overcoming these barriers will require advancements in technology, clearer regulatory frameworks, broader consumer education and a more stable market environment.

Crypto Continues to Make Inroads with Global Institutions

As PYMNTS wrote last Thursday (July 4), we are halfway through 2024, and the cryptocurrency and blockchain space finds itself at a critical juncture, where regulatory developments, interoperability and scalability and institutional acceptance are at the forefront.

But recent news has shown that the cold shoulder institutions have traditionally shown to the Web3 space is beginning to thaw.

For example, Switzerland-based cryptocurrency wallet maker Tangem AG launched a payments partnership with Visa. The collaboration, announced Friday (July 5), has resulted in a Visa payments card combined with a hardware wallet that lets Tangem users make payments using their crypto or stablecoin balances at merchants that accept Visa.

Visa is not the only payment organization making crypto moves. Mastercard has been working with Tezos Foundation and Baanx to offer a range of non-custodial crypto card offerings that take place on Etherlink, per a Tuesday (July 9) report. Mastercard and Baanx also have a debit card with DeFi firm 1Inch and together are working on one with MetaMask.

Elsewhere, Singapore’s DBS Bank is set to begin a custody service for stablecoin reserves.

It’s part of a collaboration between the city-state’s largest lender and a local unit of cryptocurrency issuer Paxos Trust, PYMNTS reported last Tuesday (July 2), with the partnership also including cash management services.

Leading financial institution Goldman Sachs is gearing up to launch three tokenization projects by the year’s end, targeting major institutional clients, according to a Wednesday (July 10) report.

Even Sony now owns and operates a crypto exchange, with a July 1 report indicating that the exchange aims to collaborate with various Sony Group businesses, leveraging the conglomerate’s vast intellectual property portfolio across the entertainment, music and gaming sectors. Sony Bank is also venturing into blockchain-based financial products, including NFT rewards and stablecoin issuance.

Read more: This Week in Web3: Mt Gox Bitcoin and Crypto’s Future

Security Concerns and Market Perception

Of course, it will take time for crypto to shake its illicit connotations, because the sector still remains a favorite of fraudsters.

By the middle of 2023, hackers had stolen $657 million in cryptocurrency. One year later, that figure had more than doubled to $1.38 billion, blockchain data firm TRM Labs said in a report issued Friday (July 5).

Still, thefts from hacks are a third below the first six months of 2022, which “remains a record year.”

Cryptocurrency analysts have alleged that an online marketplace called HuiOne Guarantee is where cybercriminals in Southeast Asia, particularly those linked to pig butchering scams, go to launder their funds. Per the Wednesday report, merchants on the platform offer technology, data and money laundering services, and have engaged in transactions totaling at least $11 billion.

But that doesn’t mean that these criminals don’t ultimately end up facing the music. Two former FTX executives are set to face sentencing hearings later this year. Nishad Singh will be sentence on Oct. 30 and Gary Wang will be sentence on Nov. 20, with both having pleaded guilty to fraud, PYMNTS reported on Tuesday.

Web3 Marketplace Moves

As always with crypto, it is crucial to separate the signal from the noise. And the marketplace is continuing to innovate and build.

ThirdFi.org, a Web3 infrastructure protocol that empowers Web3 users with identity and developers with application programming interfaces and software development kits, on Wednesday raised $2 million in token financing investments.

And after a period of relative dormancy, crypto gaming is once again showing signs of life, with Tap-to-Earn games emerging in the crypto world, picking up where Play-to-Earn crypto games left off.

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