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As more banks enter the digital assets space, the trend of establishing digital asset custody services is growing. Standard Chartered's recent move to launch a custody service in the Dubai International Financial Centre is just the latest in a series of similar initiatives by major financial institutions. Key Observations and Trends: 1. Institutional Demand Drives Custody Services: The growing need for secure, compliant platforms to manage digital assets is pushing banks like Standard Chartered and DBS to establish their own custody services. As interest in digital assets rises, so does the need for robust custody solutions that meet regulatory standards. 2. Regulatory Approval as an Advantage: Banks gaining regulatory approval for custody services not only legitimize their offerings but also gain a competitive edge. This focus on regulation highlights a trend where compliance and security are becoming central to the digital asset ecosystem. 3. Diversification of Services: Banks are expanding beyond custody to include trading, tokenization, and portfolio management, integrating digital assets into traditional financial products. Custody services are often the entry point, with banks then expanding into other areas of digital finance. 4. Regional Hubs for Digital Assets: The rise of hubs like Dubai, Singapore, and Hong Kong as centers for digital asset activity is notable. These hubs offer favorable regulatory environments and access to institutional investors, positioning banks at the forefront of global digital asset innovation. What Does This Mean? The move by banks to develop digital asset custody services reflects a broader acceptance of digital assets. It indicates that financial institutions are not just exploring digital assets—they are preparing for a future where digital assets are integral to their offerings. This trend could lead to innovation in how digital and traditional assets are managed, traded, and stored. As we observe this trend, it’s clear that digital assets are no longer a fringe interest but are becoming a fundamental part of the global financial system. Banks, with their focus on security, regulation, and trust, are likely to shape this new landscape. https://lnkd.in/gFzM3xDw

"Brevan Howard Digital (BH Digital), the dedicated digital asset division of Brevan Howard, is the latest client of Onyx by JP Morgan. It’s using JPM Coin Systems to enable cross border programmable payments 24/7. Additionally, it plans to onboard partners that are part of the asset management ecosystem. JP Morgan is the world’s biggest provider of US dollar accounts globally. JPM Coin is a blockchain-based bank account that allows JP Morgan clients to move money between their accounts held at JP Morgan branches around the world. That’s extremely useful for asset managers, ensuring they have the cash in the right place at the right time, instantly and on demand, with the added advantage of programmability. “The team at Onyx by J.P. Morgan have created an excellent DLT use case, providing clear efficiency gains for fiat transfer rails,” said Gautam Sharma, CEO & CIO, BH Digital. “This offers huge potential across our business, and indeed the industry more broadly. In fact, we are already working to implement JPM Coin System with a number of our partners.” Amongst asset managers, BH Digital is the traditional finance (TradFi) institution that has most explored stablecoins, publishing two reports on the topic. So a relevant question is how its use of stablecoins crosses over with using JPM Coin. We hope to provide an answer. Of course, most payments today still use conventional money, which is the biggest argument. On boarding and off boarding from a stablecoin might happen in one or two jurisdictions, but that cash might be needed in other places. Plus, as an asset manager, BH Digital isn’t going to keep large amounts of cash in stablecoins that don’t earn a yield. Meanwhile, Umar Farooq, Global Co-Head, J.P. Morgan Payments, commented, “We’re proud to be the leader in the industry with the first blockchain-based wholesale payments platform for commercial bank money, enhancing Brevan Howard’s business with seamless payment settlements.”" Ledger insights Brevan Howard Digital starts using JP Morgan’s JPM Coin for DLT payments

Meet csUSDL: The First Liquid Lending Token Backed by RWA. csUSDL is an institutional-grade asset designed for DAOs, onchain businesses, and individual investors—setting a new standard in treasury management. ℹ️ Who we are. Managing crypto treasuries has always been a challenge. Organizations rely on Safe, the leading multi-signature wallet securing $100B+ in assets, but operational fragmentation—across payments, accounting, and portfolio tracking—creates inefficiencies and risks. The Coinshift Business platform addressed these issues by building on SAFE’s battle-tested architecture to unify treasury workflows for free, empowering organizations to focus on growth. Trusted by 300+ web3 organizations, including AAVE, UMA, TreasureDAO, and Starknet Foundation, Coinshift has: • Facilitated $1B+ in payouts • Managed $1B+ in assets We’re backed by investors like Tiger Global Management, Peak XV Partners, Consensys, and Polygon Ventures. 1️⃣ Now, the problem. One major pain point we've observed through years of managing payments is that most treasuries heavily rely on stablecoins like USDC—great for stability but offering no yield. The market demands: • Higher yields • User control • Transparency in yield and risk management • Seamless DeFi integration 2️⃣ The solution. Partnering with Paxos, issuers of PayPal's PYUSD, we created csUSDL, the first Liquid Lending Token (LLT). csUSDL is the tokenized position of Paxos' USDL in the Coinshift USDL Vault, enabling: • Real, native yield • Efficient DeFi lending • Full transparency and user control Coinshift is elevating its asset management offerings with csUSDL to deliver superior value and optimize earning opportunities for users. 3️⃣ csUSDL is secured by the best. 1. Paxos: USDL delivers up to 5% APY, backed by cash equivalents and T-bills, with FSRA compliance and monthly audits. 2. Steakhouse Financial: Managers of multi-billion-dollar RWA programs, ensuring only regulated RWAs and blue-chip assets are onboarded. 3. Morpho Labs: A permissionless P2P lending protocol with 15+ audits, offering increased yields and better borrowing rates without governance bottlenecks. 4️⃣ How does csUSDL generate yield? 1. Base Yield (up to 5%): Daily returns from USDL’s RWAs paid directly to wallets—no staking required. 2. DeFi Lending Yield: Additional returns by lending USDL against blue-chip assets (e.g., wstETH, WBTC) in Morpho markets (coming soon). csUSDL holders also earn MORPHO and SHIFT token rewards. 6️⃣ The role of SHIFT. The SHIFT token drives csUSDL's liquidity growth, adoption, and value creation: • Rewards csUSDL holders with greater emissions, creating a flywheel for liquidity growth. • Enhances APYs for treasuries adopting csUSDL. • Shares revenue from USDL minting fees (up to 25 bps) and vault performance fees (currently 0%). 7️⃣ The vision. Coinshift empowers users to move, hold, and invest value seamlessly onchain with self-custody at its core. Learn more: coinshift.xyz

Just in: RAKBANK Teams Up with Bitpanda for Digital Asset Services: RAKBANK has announced a strategic alliance with Bitpanda Technology Solutions, a prominent player in digital assets infrastructure headquartered in Vienna. This partnership marks a significant milestone in the bank's commitment to offering advanced financial solutions and positions it as a key player in the evolving digital asset landscape. The collaboration between RAKBANK and Bitpanda aims to create a comprehensive platform for UAE residents, facilitating the seamless management and secure handling of digital assets. Customers will soon have access to a range of digital asset services, including buying, selling, and managing various cryptocurrencies and digital tokens through the bank’s established channels. Bitpanda, renowned for its robust technology and infrastructure in the digital asset space, will provide RAKBANK with the necessary tools and expertise to enhance its digital offerings. The partnership is set to leverage Bitpanda's advanced technology to deliver a user-friendly experience, ensuring that customers can navigate the digital asset market with ease and confidence. As digital assets gain traction globally, RAKBANK’s initiative reflects a broader trend among financial institutions to adapt to the changing landscape of financial services. By integrating Bitpanda's technology, RAKBANK is not only expanding its product portfolio but also positioning itself at the forefront of digital innovation in the UAE's financial sector. The bank's move aligns with its strategy to diversify its offerings and cater to the growing demand for digital asset solutions. This partnership is expected to attract a wide range of customers, from individual investors to businesses looking to explore digital assets as part of their financial strategy. Bitpanda's technology is recognized for its high security standards and efficiency, factors that will be crucial in ensuring the safety of transactions and asset management for RAKBANK’s clients. The platform will incorporate features designed to provide a seamless user experience, including real-time updates and advanced security measures to protect digital assets. This development is part of a larger trend where financial institutions globally are increasingly integrating digital asset services to stay competitive and meet evolving customer expectations. RAKBANK’s collaboration with Bitpanda is a strategic move to enhance its digital offerings and remain relevant in a rapidly changing financial landscape. The introduction of these services will enable UAE residents to manage their digital assets with greater flexibility and security, reflecting a significant step forward in the integration of digital finance solutions into mainstream banking. RAKBANK's partnership with Bitpanda is set to pave the way for further innovation and expansion in the digital asset domain,…

Real estate RWA RWAs - "SBI’s NEObank starts offering Mitsui security tokens to clients. This week Japan’s SBI Sumishin Net Bank (NEObank) started to offer security tokens to its 7.7 million banking customers. It’s part of a collaboration with Mitsui & Co Digital Asset Management which launched a direct-to-consumer security token service last year, Alterna. Typically asset managers would distribute funds via brokers, but Mitsui’s model is to go direct. While it would seem that it replaced a broker with a bank, the model is different. Customers interact directly with the Alterna platform. So it is partnering with introducers rather than brokers. Alterna launched in mid 2023 and quickly partnered with another online bank, Sony Bank (1.9 million customers). Subsequently, it partnered with department store operator J Front Retailing, which offers the JFR loyalty card. As part of the collaboration, JFR cardholders can invest in Alterna on a drip basis. If the fund were structured in a more conventional way, it might include a fund distribution platform, fund administrators, transfer agents, custodians, and other intermediaries. By removing intermediaries it can reduce issuance and administrative costs. In turn, this means that the minimum investment amount can be lower, usually Yen 100,000 ($647) for Alterna. Assuming some of the cost savings are passed on to clients, it should also result in higher returns. This week Mitsui announced its ninth security token, an issuance backed by a hotel building rented by the Ibis Osaka Umeda. While the building is worth Yen 9 billion ($58.3m), the security token issuance is for Yen 2.23 billion ($14.4m). The Ibis token was issued on the Progmat platform, which was founded by MUFG and in which SBI also has a stake. This is the 27th issuance using Progmat, representing around Yen 135 billion in value ($874 million). So far Japanese security token activity has mainly been real estate focused, accounting for 25 of the 27 issuances. The other two were bonds." Ledger insights

Rise of Decentralized Finance (DeFi) and Its Impact on Traditional Banking : Understanding Decentralized Finance (DeFi) DeFi refers to a set of blockchain-based financial services and applications that aim to replicate traditional financial systems but operate without intermediaries like banks. ■ Key elements of DeFi include: ● Decentralization: Transactions and financial services are conducted peer-to-peer through smart contracts on blockchain platforms like Ethereum, eliminating the need for intermediaries. ● Accessibility: DeFi aims to provide financial services to anyone with an internet connection, potentially bridging gaps in financial inclusion globally. ● Innovation: DeFi platforms offer a wide range of services beyond simple payments, including lending, borrowing, staking, yield farming, and decentralized exchanges (DEXs). ■ Impact on Traditional Banking : The rise of DeFi poses several challenges and opportunities for traditional banking institutions: Competition: DeFi platforms challenge banks by offering faster, more efficient, and often cheaper financial services. This competition could pressure banks to innovate and improve their services. Financial Inclusion: DeFi has the potential to provide banking services to the unbanked and underbanked populations globally, bypassing traditional barriers like geographical location or lack of documentation. In conclusion, while DeFi represents a disruptive force in the financial sector, its full potential hinges on addressing regulatory challenges, enhancing security measures, and improving user education. Whether it will complement or compete with traditional banking remains to be seen, but its rapid growth underscores its significance in shaping the future of finance.

Cloud-based hedge funds are experiencing significant gains in efficiency and data security, with 96% of cloud-based managers reporting increased operational efficiency after migration. However, many still struggle with data unification during the migration process, as fragmented systems can create challenges in maintaining a cohesive and accurate data flow. To alleviate this stressor, GNS offers end-to-end data validation and reconciliation solutions designed to streamline and unify data across platforms, ensuring seamless integration and reliable insights for hedge funds. With GNS, firms can maximize the benefits of cloud computing while overcoming unification challenges. Reach out to us today to learn more about how we can help. https://lnkd.in/eAdwjGV8

Integration of DeFi with Traditional Finance (TradFi): The Future of Global Finance In the rapidly changing financial ecosystem, the integration of Decentralized Finance (DeFi) and Traditional Finance (TradFi) is a transformative trend reshaping how the world interacts with money. This groundbreaking fusion is bridging the gap between innovation and tradition, creating a financial system that is more accessible, efficient, and transparent. In this article, we’ll explore what DeFi and TradFi are, the benefits and challenges of their integration, and why this shift represents the future of global finance. -What is DeFi and TradFi? To understand their integration, let’s first break down these concepts: -Decentralized Finance (DeFi): DeFi is a blockchain-based financial system that eliminates intermediaries like banks and brokers. It operates on smart contracts, enabling peer-to-peer transactions, lending, borrowing, and trading with minimal fees and maximum transparency. -Traditional Finance (TradFi): TradFi represents the conventional financial system built on centralized institutions like banks, stock exchanges, and insurance companies. It operates within a regulated framework, ensuring stability and trust. While these systems have historically operated separately, their integration signals a major evolution in global finance. -Key Drivers of DeFi-TradFi Integration 1. Asset Tokenization Tokenization converts real-world assets like real estate, stocks, or commodities into digital tokens on a blockchain. Benefits of Tokenization: Increased liquidity through fractional ownership. Simplified asset management. Cost-effective global transactions. Traditional financial institutions are increasingly leveraging tokenization to make illiquid assets more accessible. 2. Cross-Border Payments and Settlements DeFi platforms streamline international payments by removing intermediaries, reducing costs, and accelerating transaction times. Example: Stablecoins enable instant global payments, bypassing the days-long settlement periods of traditional systems. 3. Hybrid Financial Products The integration is giving rise to innovative financial products that blend the strengths of both systems. Examples include blockchain-based bonds, decentralized savings accounts, and yield-generating investment funds. 4. Streamlined Compliance through Decentralized Identity Blockchain-based identity solutions enhance Know Your Customer (KYC) and Anti-Money Laundering (AML) processes. Impact: Faster and more secure compliance for traditional financial institutions. -Why DeFi-TradFi Integration is the Future This integration offers unparalleled advantages for both institutions and consumers: *Greater Accessibility: DeFi makes financial services available to underbanked and unbanked populations worldwide. *Cost Savings: Automated processes powered by smart contracts reduce operational and transactional costs.

The Banking Revolution No One Can Ignore Last week, I met someone who stopped me mid-conversation and asked, “What exactly is DeFi?” She had heard the term floating around but had no idea what it really meant or why it mattered. So I broke it down for her—explaining how Decentralized Finance is reshaping global banking by putting financial power directly in the hands of users. She was wowed by the idea of financial systems operating without intermediaries, open 24/7, and accessible to anyone with an internet connection. That moment inspired me to dig deeper and write my latest article. Traditional banking is facing its biggest disruption since the internet - and this time, it's not just about digital transformation. Decentralized Finance (DeFi) is fundamentally rewiring how we think about money, banking, and financial access. Here's why this matters for every professional: 1️⃣ Traditional Banking vs. DeFi - While your bank operates through centralized control, DeFi puts financial power directly in users' hands - No more waiting for "business hours" or dealing with intermediaries - Smart contracts are replacing traditional paperwork and approval processes 2️⃣ Game-Changing Features: - 24/7 global operations - Programmable finance - Transparent transactions - Lower barriers to entry - Inclusive financial services 3️⃣ Global Impact: The implications are massive for: • Cross-border businesses • International remittances • Emerging markets • Financial inclusion But it's not all smooth sailing. In this blog post, I shared insights on: ✅ Current challenges facing DeFi adoption ✅ How traditional banks are responding ✅ What the future holds for global banking 🔍 Want to understand how this affects your business or career? Read here: https://lnkd.in/dHugWpWz #DeFi #FinTech #Banking #Blockchain #FinancialServices #TechTrends #Innovation

Today, the role of technology in financial management is incredibly important. Modern tools and software enable the simplification and automation of many financial processes that previously required significant effort and time. Here’s how you can use technology to improve your financial life: 🏦 Online Banking Services Online banks allow you to perform banking transactions without visiting a bank. You can easily manage your accounts, make transfers, payments, and even get loans using just your phone or computer. ⭐ Blockchain and Cryptocurrencies Blockchain technology and cryptocurrencies are transforming traditional financial systems by providing greater transparency and security. They allow for fast and secure money transfers. 📲 Online Wallets (e-wallets) Online wallets are digital services that allow users to store, transfer, and receive funds online quickly. They can be used for paying bills and making various payments, saving you time. Well-known platforms in this area include PayPal, Venmo, and Revolut, while a popular example in the Armenian market is Easywallet, a digital wallet for simple payments and transfers. In Armenia, the largest number of services can be paid for with Easywallet, which offers over 1,000 payment types. 📈 Investment Platforms Online investment platforms, such as Robinhood or E*TRADE, allow you to invest easily and quickly. You can explore markets, buy and sell securities without intermediaries. 🤖 Use of Artificial Intelligence Artificial intelligence and machine learning in financial management can predict expenses, suggest steps for saving, and even assist in the investment decision-making process. We can certainly say that modern technologies are changing the world of financial management, making it more accessible, efficient, and secure. But don't forget that technology is just a tool, and the most important things are your decisions and actions. However, when used correctly, it can be your best assistant on the path to financial success🌟