USDTradFi-Crypto Ties This Week Highlight DeFi Yield, CBDCs, and Real Assets
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FIFA Partners with Avalanche to Launch EVM-Compatible Blockchain, Migrates NFTs from Algorand and Polygon
FIFA has partnered with Avalanche to create a custom blockchain compatible with the Ethereum Virtual Machine (EVM), transitioning its FIFA Collect NFT collection from Algorand and Polygon to this new network. This decision aims to enhance speed, scalability, and security, facilitating seamless integration with popular wallets. Francesco Abbate, CEO of FIFA Collect, emphasized the benefits for future growth. The FIFA Blockchain will launch with a fully migrated FIFA Collect, discontinuing support for Algorand and Polygon. Avalanche's recent "Avalanche9000" upgrade aims to reduce developer costs, contributing to a 10% rise in its native token, AVAX, on May 22.
Major U.S. Banks Explore Joint Stablecoin Venture Amid Legislative Talks
Major U.S. banks, including JPMorgan, Bank of America, Citigroup, and Wells Fargo, are in preliminary discussions to launch a joint stablecoin venture, as reported by the Wall Street Journal. The consortium may involve The Clearing House and Early Warning Services, the company behind Zelle. However, the project’s future is uncertain and depends on pending U.S. stablecoin legislation, specifically the GENIUS Act, which requires stablecoin issuers with market caps over $50 billion to maintain full dollar backing and undergo audits. Lawmakers are currently considering amendments before moving to a final vote and seeking approval from President Trump.
Kraken to Launch xStocks: Over 50 Tokenized Stocks and ETFs for Non-U.S. Customers
Kraken is set to launch xStocks, offering over 50 tokenized stocks and ETFs for non-U.S. customers, including major companies like Apple, Tesla, and Nvidia. These tokens will be issued on the Solana blockchain and backed by real shares, allowing 24/7 trading for users in regions such as Europe and Latin America. This move aims to reduce complexities for international investors and improve access to U.S. equities. Kraken emphasizes regulatory compliance, working with various regulators to ensure legality. The initiative aligns with trends in tokenization, promising benefits like enhanced settlement speeds, reduced costs, and improved transparency.
Centrifuge Launches $400M Tokenized U.S. Treasury Fund on Solana
Centrifuge is expanding its tokenized asset services to the Solana blockchain, launching with Anemoy's $400 million tokenized U.S. Treasury fund (deJTRSY). This token enables Solana users to earn yield from short-term Treasuries via platforms like Raydium, Kamino, and Lulo. The expansion leverages Centrifuge’s "deRWA tokens" for seamless use across DeFi protocols. Solana's momentum in the tokenized real-world asset space is growing, with a projected market value of $18.9 trillion by 2033. The Solana Foundation has partnered with R3 to further integrate real-world assets into its ecosystem.
R3 Partners with Solana to Facilitate Tokenization for Major TradFi Institutions
R3 is partnering with the Solana Foundation to enable major TradFi institutions to tokenize real-world assets on Solana. R3, which manages over $10 billion in assets and includes clients like HSBC and Bank of America, aims to enhance the scale and liquidity of the tokenized asset ecosystem on a public blockchain. Tokenization, a key blockchain use case, could reach a market value of $18.9 trillion by 2033, according to Boston Consulting Group. Solana, known for its high transaction volume and active addresses, is positioned as a leading platform for regulated digital finance.
SG Forge to Launch First USD Stablecoin by a Global Bank on Public Blockchains
Société Générale’s crypto subsidiary, SG Forge, is set to launch a USD-backed stablecoin on public blockchains, such as Ethereum and Solana, marking a first for traditional banks. This move targets institutional investors in the $250 billion stablecoin market, dominated by private entities like Tether and Circle. SG Forge, holding an EU e-money license, aims to compete with Circle’s EURC, which dominates the euro stablecoin space. Despite the success of its EURCV, the euro stablecoin market remains sluggish, with total market cap around €300 million, highlighting regulatory challenges under the EU’s MiCA framework affecting stablecoin issuers.
Franklin Launches Payroll Treasury Yield to Generate DeFi Yields on Idle Payroll Funds
Franklin, a hybrid cash and crypto payroll provider, has launched Payroll Treasury Yield, enabling companies to earn decentralized finance (DeFi) yields on idle payroll funds. This initiative utilizes blockchain lending protocols via integrated Summer.fi, allowing companies to deposit stablecoins into audited smart contract-based lending pools, lending to vetted borrowers. Franklin positions this as an alternative to traditional treasury tools, addressing operational complexity and limited returns. CEO Megan Knab predicts a future where public blockchain technology transforms payments, potentially sidelining banks. However, risks associated with decentralized lending, including smart contract vulnerabilities, are acknowledged and mitigated through overcollateralization.
Colombia Launches Pilot CBDC on Cosmos Network with IBC Eureka Protocol
Colombia is set to launch its first central-bank digital currency (CBDC) on the Cosmos network, backed by major banks and the government, underpinned by the IBC Eureka protocol. This initiative aims to enhance cross-border settlements through programmable money while ensuring institutional security. The CBDC retains the legal status of cash and functions as a liability of the central bank. Interchain Labs’ CEO emphasized the need for a secure and understandable technology for the government. The pilot includes a permissioned approach, allowing the central bank and partner banks to define trusted validators, ensuring safety and transparency in transactions.
Ledn Shifts to Full Custody Bitcoin Loans, Discontinues Ethereum Support
Ledn, a digital asset lender, is shifting to a full custody model for Bitcoin loans, discontinuing Ethereum support to focus solely on Bitcoin, which constitutes over 99% of its client activity. This move, announced on May 23, aims to enhance client asset security by avoiding the rehypothecation of assets. With a loan book value of $9.9 billion, Ledn allows Bitcoin holders to borrow against their assets without selling, a popular strategy among wealthy investors. This approach aligns with Bitcoin's founding principles against fractional reserve banking, as Ledn aims to simplify its operations and reinforce client trust.
Fold Launches Bitcoin Gift Card, Enabling Purchases Between $25 and $500
Fold, a Nasdaq-listed Bitcoin financial services company, has launched the Fold Bitcoin Gift Card, enabling consumers to purchase and gift Bitcoin conveniently, with amounts ranging from $25 to $500. The card's development, in partnership with Totus, aims to integrate Bitcoin into the $300 billion gift card market. Fold plans to expand the card's availability in online and retail locations across the US. To redeem, recipients must verify their Fold account. The company currently holds over 1,485 BTC in its treasury and focuses on making Bitcoin accessible through various products, including the Fold App and Fold Credit Card.
Schuman Financial Launches MiCA-Compliant Euro Stablecoin on XRP Ledger
Schuman Financial has launched EURØP, a MiCA-compliant euro stablecoin, on the XRP Ledger (XRPL), representing a significant advancement in regulated digital assets. EURØP is a fully redeemable, euro-backed stablecoin issued by a licensed electronic money token issuer and boasts reserves audited by KPMG. The XRPL has processed over 3.3 billion transactions and supports over 6 million wallets, maintained by 200+ validators. This integration provides a euro settlement layer for DeFi, payments, and tokenized assets, positioning EURØP as a key player in Europe's digital currency landscape as MiCA regulations come into full effect.
This article has been refined and enhanced by ChatGPT.
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