UBS launches tokenized money market fund pilot on Ethereum. $8BN is considered a rounding error by SBF.

UBS launches tokenized money market fund pilot on Ethereum. $8BN is considered a rounding error by SBF.

The Blockchain Revolution: Exploring the Latest Developments and News

Blockchain Industry Source: AdobeStock / lenscap50

Welcome to your daily digest of cryptoasset and blockchain-related news! In this article, we will delve into the latest developments in the blockchain industry, uncovering stories that often fly under the radar of mainstream crypto news.

Tokenisation News

In a move that further cements the growing significance of tokenization, major fund house UBS Asset Management has announced the launch of a pilot for a tokenized money market fund using Ethereum’s blockchain. By utilizing their in-house tokenization service, UBS Tokenize, the pilot allows for activities such as fund subscriptions and redemptions to be carried out through a smart contract. This project represents the “first live pilot” of a tokenized Variable Capital Company (VCC) fund, which is part of Project Guardian, an industry initiative led by the Monetary Authority of Singapore (MAS). The aim of the project is to bring real-world assets onto the blockchain, demonstrating the industry’s growing interest in utilizing blockchain technology for various financial operations.

In recent news, there has been a focus on FTX, with founder and former CEO Sam Bankman-Fried making headlines. According to biographer Michael Lewis, Bankman-Fried considered the billions of dollars in missing funds as a mere “rounding error.” Despite having $8 billion that did not belong to him in his private fund, Bankman-Fried claimed that it wasn’t even a concern due to the vast amount of capital involved. This mindset sheds light on his unique approach to business, as he views everything through a gaming lens, where risk and reward take on an adventurous twist.

Additionally, FTX’s former auditing firm, Prager Metis, is facing a lawsuit from the US Securities and Exchange Commission (SEC). It is alleged that Prager violated auditor independence rules by including indemnification provisions in engagement letters for over 200 audits, reviews, and exams. The court filing reveals that Prager Metis’ actions affected 62 SEC Registrant Clients, resulting in fees totaling over $3,000,000. These legal issues emphasize the importance of transparency and adherence to regulations within the blockchain industry.

Investment News

Deus X Capital, a crypto-focused investment firm, has recently announced its launch. Led by Tim Grant, former head of crypto investor Galaxy Digital Holdings’ European business, Deus X Capital possesses $1 billion in assets under management. With a diverse background at UBS and as the CEO of SIX Digital Exchange, Grant brings extensive experience to the firm. Deus X Capital plans to deploy its capital across a wide array of investment opportunities, including private equity, venture capital, and fund allocation. The launch of Deus X Capital highlights the increasing interest from institutional investors in the crypto space.

Regulation News

GSR, a globally recognized cryptocurrency trading firm and liquidity provider, has achieved a significant milestone in its regulatory journey. Its Singapore subsidiary, GSR Markets Pte. Ltd., has received In-Principle Approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution license. This license not only represents a crucial step for GSR but also signifies an enhanced ability to serve the cryptocurrency community within Singapore. GSR intends to pursue a full license as it continues to strengthen its position within the market.

Exchange News

Turkish crypto exchange, Bitay, has expanded its services to cater to crypto investors in the United Arab Emirates (UAE). Henley & Partners’ Crypto Adoption Index ranks the UAE among the top three countries with high levels of crypto adoption. Bitay’s move to enter the UAE market is a strategic one, as it offers over 850 trading pairs and supports more than 350 cryptocurrencies. With availability in over 200 countries and the ability to transact in more than 20 local currencies, Bitay is positioning itself as a global exchange platform.

In summary, the blockchain industry continues to witness significant developments across various sectors. Tokenization is gaining traction, allowing the digitization of traditional financial assets. Companies like Deus X Capital are bringing substantial investment capital into the crypto space, underlining the growing interest from institutional investors. Moreover, regulatory advances, as illustrated by GSR’s approval, are fostering a supportive environment for the industry’s growth. And lastly, the expansion of exchanges like Bitay into new markets indicates the increasing global adoption and accessibility of cryptocurrencies. As the blockchain revolution progresses, it’s clear that we are only just scratching the surface of its transformative potential.