Crypto company, Paxos seeks approval to be a U.S National Bank
Stablecoin facilitator and digital asset services provider Paxos has recently filed an application for a National banking license.
Stablecoin facilitator and digital asset services provider, Paxos, has recently filed an application for a National banking license.
On approval, Paxos General Trust will be headquartered in the financial hub of the United States (New York), authorized to hold cryptos and execute the functions of a normal trust bank.
Why the license matters
According to details seen on its web page, being granted such a license from the American authorities will enable it to expand the range of services offered by the fast-growing crypto company and also increase the geopolitical area to which it can offer services:
- “Our mission is to modernize financial market infrastructure and enable the movement of any asset, any time, in a trustworthy way. A national Trust Bank charter would help us realize our goal by enabling us to serve customers across the country in the most efficient way.”
The report also revealed its present regulatory license, in functioning as a digital custodian and asset management company.
- “Paxos has always embraced a regulation-first approach, and together with the NYDFS, we set the industry standard for regulation in digital asset custody and management.”
The NYDFS ( New York State Department of Financial Services) has demonstrated time and again its commitment to making New York a hub of financial innovation.
- It was the first government agency to take clear and decisive action towards digital assets and has set a standard for all other regulators to follow.
- It was the first regulator to approve the issuance of a digital asset (Paxos Standard, in 2018).
- It was the first regulator to approve the issuance of an asset-backed token (PAX Gold, in 2019).
- It continues to reinvent digital asset regulation, for example with the advent of the virtual currency green list.
Standard Chartered Bank plans European crypto exchange
Standard Chartered Bank, United Kingdom’s multinational banking and financial services company, plans to launch a cryptocurrency exchange. To achieve this, the bank has partnered with Hong Kong exchange owner, BC Technology Group, to launch a platform for the U.K. and European institutional market.
The bank has long expressed interest in the cryptocurrency market and this is their way of breaking into the space. The project will be handled by Standard Chartered Ventures, the innovation arm of the bank, but no timeline has been given for the launch.
What they are saying
Alex Manson, Head of SC Ventures, in an interview with Reuters, stated, “We have a strong conviction that digital assets are here to stay and will be adopted by the institutional market as a highly relevant asset class.”
Raphael Polansky, the managing director at Boerse Stuttgart Digital Ventures GmbH, mentioned last week that demand for cryptocurrencies from traditional banks will increase over time but in the short run, they may be more reluctant and sceptical especially now that the market has been getting a lot of backlashes from regulatory authorities in various countries.
He stated, “We foresee a lot of strategic moves in the market where traditional banks will invest in crypto custodians instead of building up their own solutions.”
Standard Chartered is now one of the latest mainstream financial players to show interest in cryptocurrency trading. The bank’s longtime rival, HSBC, publicly announced that it had no interest in entering the cryptocurrency market, even as competitors seek to meet institutional and client demand for cryptocurrency-based investments.
What this means
With more traditional banks getting involved in cryptocurrencies, the notion that cryptocurrencies are speculative assets is being dispelled and the value of the crypto market is becoming clearer to investors, especially and with the global inflation rate which is expected to increase.
Standard Chartered share price is trading £505, currently up 0.52%.
Chinese government set to launch Digital Yuan lottery as part of digital currency trial
The Chinese government is set to launch another digital Yuan lottery to help its ongoing digital currency trials, happening in the capital of Beijing. The Beijing Local Financial Supervision and Administration announced yesterday that the government will distribute 40 million digital yuan ($6.2 million) to Beijing residents as part of a test run for the new digital currency.
Starting in June, the program will feature red envelopes, a traditional way of gifting money. Each envelope will have a free wallet containing 200 digital yuan ($31). The red envelopes are intended to be distributed to 200,000 lottery winners. Winners must download an application to use their prizes. The digital yuan can be used at nearly 2,000 designated merchants in the city. To register, consumers can use two banking apps: China’s Mobile Banking App and ICBC Mobile Banking app.
According to the announcement, Beijing residents must apply to participate in the lottery before midnight of June 7, and the winners will be able to spend their prizes by June 20. Users will have the ability to top up their wallets if they want to spend some extra money.
This is not the first giveaway the government has carried out. Multiple digital yuan giveaways were done in other cities such as Shenzhen. The lotteries are intended to help the People’s Bank of China test the country’s digital currency after the central bank launched the first digital Yuan trials in April 2020.
China has reportedly given away as much as 150 million digital Yuan ($23.5 million) to promote digital currency use as part of the trials as of late March. In fact, China’s central bank is looking to allow foreign athletes and visitors to use the digital yuan during the Beijing Winter Olympics in 2022.
To be launched crypto payment gateway FinRik’s native token Wavycoin launches presale
Wavycoin (WVY) the native coin of payment gateway cum exchange FinRik will be launching a presale by May 1 according to insider news, the utility coin boost of an ecosystem that aims at making betting decentralized while also allowing individuals to place bet on the most minimum activity that they find interesting.
Wavycoin will be built on Binance smart chain contract and the total supply of the token is 100million and its expected to debit at presale at $0.5.