Chain News Daily Today TheBitTimes.com

Hong Kong authorities have proposed accepting and regulating fiat-pegged stablecoins (FRS). According to the document, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) will allow retail investors to purchase stablecoins , but note that their issuers must obtain a special local HKMA license. To obtain a license, companies must fully support all stablecoins in circulation with reserves equal to the face value, segregation and custody of reserve assets, disclosure, and regular reporting. They will also need to open an office in Hong Kong with a CEO, senior management team, and key personnel. However, Algorithmic Stablecoin Issuers will not be able to obtain a license. “Implementing law enforcement and enforcement arrangements can properly manage the actual and potential risks associated with developing stablecoins in Hong Kong and be consistent with international standards.” Hui Ching, Director of the Treasury Bureau In...

TOKI, a cross-chain bridge provider and partner of Progmat, will be working with Noble, a token issuance protocol, to bring fully collateralized Japanese stablecoins to the Cosmos ecosystem. Progmat is a project launched by Mitsubishi UFJ Trust and Banking (MUFG) — the largest bank in Japan, and has the support of over 200 Japanese companies including major banks such as SMBC and Mizuho. The Japan Exchange Group (JPX) is also involved in the project.  Motoki Yoshida, marketing manager of TOKI, told Blockworks that Progmat is currently building a platform that will enable banks and regulated financial institutions to issue their own stablecoin s. “The basic architecture involves financial institutions interested in issuing stablecoins depositing an equivalent amount of fiat currency with MUFG’s trust bank. Progmat then issues an equivalent amount of stablecoins. The funds in the trust bank are bankruptcy-remote, making this potentially the most secure stablecoin for use on public...

On-chain data from Glassnode shows market participants averting risk and seeking shelter in stablecoins and BTC as the crypto market nears a decisive move. On-chain analytics firm Glassnode published a report hinting that investors are rotating capital toward risk-off assets like stablecoins and Bitcoin. Technicals show that altcoins are at a crucial turning point between a positive and a negative breakout. Glassnode’s Analysis of Uniswap and futures trading volumes reveals that the uptrend that began in the first quarter of 2023 began cooling off in April, with regulatory concerns and a lack of liquidity promoting risk-off tendencies among traders . The report stated that while it might appear that memecoins caused a surge in Uniswap’s trading volume, a closer look at Uniswap’s pools reveals that the majority of volume was for top cryptocurrencies in Wrapped BTC, Ether (ETH) and stablecoins . Moreover, sandwich attacks and bot trading accounted for a significant amount of this tradi...