EU-regulated firm Banking Circle adopts USDC stablecoin

July 8, 2022 Coin Telegraph

Banking Circle was launched in 2016 with a mission to help payments businesses reach new global markets, avoiding the burdens of traditional banking.

Banking Circle, a European bank focused on cross-border payments, is adopting a major U.S. dollar-pegged stablecoin for payment rails.

The firm officially announced on Friday the adoption of the USD Coin (USDC) on its platform as a payment acceptance, processing and settlement method.

The new payment feature is enabled as part of Banking Circle’s new service targeting banks and payment providers, allowing them to facilitate payments outside traditional bank rails.

Coinbase, a major cryptocurrency exchange in the United States, will be one of the crypto liquidity providers for Bank Circle, the announcement notes.

The USDC adoption by Banking Circle is positioned as a “key step in democratizing global finance” as it provides significant “reconciliation, speed and cost advantages,” the firm said.

Mishal Ruparel, head of virtual asset services at Banking Circle, pointed out that digital assets are likely to become the “leveler” for the global economy in the future. “It’s critical, therefore, that Banks and Payments providers have the ability to process certain types of cryptocurrencies in the same way they do fiat currencies,” he noted, adding:

“We already have client demand for paying out in cryptocurrency. [...] We will, therefore, provide the facility to convert fiat to stablecoins in USDC, giving financial institutions the ability to send funds in stablecoin easily and with full regulatory compliance.”

Banking Circle was launched in 2016 with a mission to help payments businesses reach new global markets, avoiding the process burdens of traditional banking. Headquartered in Luxembourg, operates as a credit institution under the regulations of the Luxembourg Commission for the Financial Sector.

The firm also offers services in other European countries such as the United Kingdom, operating under limited supervision of the U.K. Financial Conduct Authority.

USDC is the world’s second-largest stablecoin by market capitalization, following only Tether (USDT). The USDC stablecoin was launched in 2018 as a joint project between the Coinbase crypto exchange and Circle, a U.S.-based blockchain payment firm founded by Jeremy Allaire and Sean Neville in October 2013.

61% of Luxembourg financial players to embark on crypto journey in 2022: PwC

February 16, 2022 Coin Telegraph

Bitcoin

The Big Four player PwC Luxembourg dropped a compelling report on crypto-asset intentions, ownership and challenges.

In a bullish report released by professional services firm PwC Luxembourg, 61% of 123 Luxembourg-based financial players are “embarking or planning to embark on a crypto journey.”

The report comes hot on the heels of competitor professional services firm KPMG Canada’s decision to add Bitcoin (BTC) and Ethereum (ETH) to its treasury. It appears the Big Four is warming up to crypto.

Thomas Campione, blockchain & crypto-assets Leader for PwC Luxembourg, told Cointelegraph that “For many years, traditional players have been looking at crypto-assets with skepticism.” He added that a possible combination of “branding issues” and a lack of understanding may have stymied growth in the space in the past.

However, the negative sentiment may be on the turn. Campione told Cointelegraph:

“It is becoming clear however that 2022 shall be a pivotal year when it comes to crypto-assets management.”

The report shares that the “rate at which the global crypto-assets industry is undeniable,” and attempts to use Luxembourg as a “lens” through which one can gain a better understanding of the nascent asset class.

The only Grand Duchy in the world, Luxembourg is a tiny European country that punches well above its weight in the financial services and blockchain industries. In 2021, the PM declared his desire for Luxembourg to be the 'digital frontrunner' in blockchain.

OG’s in the cryptocurrency space will remember that PwC Hong Kong began accepting payments in BTC in 2017. Campione told Cointelegraph that PwC Luxembourg began the same process in 2019.

While the report cites energy consumption, anti-money laundering concerns and “regulatory fragmentation” as challenges facing the cryptocurrency industry; critically, one-fifth of the businesses surveyed in the report already view “crypto-assets as a strategic priority.”

Campione concluded:

“Taken into consideration that Luxembourg is the second investment funds hub in the world, these results clearly set the tone on what to expect in the market in the very near future."

Digital asset exchange Blocktrade concludes $25M investment round

August 10, 2021 Coin Telegraph

Digital asset exchange Blocktrade concludes M investment round

Coin Telegraph

The company underwent a successful securities offering earlier this year, receiving support from over 6,000 European investors.

Luxembourg-based Blocktrade has become the latest cryptocurrency exchange to receive major backing from venture capitalists, offering further evidence that digital asset startups are becoming a prime target for investment funds.

Private investors across 33 countries participated in the $25.8 million, or 22 million euros, Series A round, Blocktrade announced early Tuesday in Europe. The investors were not disclosed.

Blocktrade said the funding will go towards improving internal operations, especially in the areas of security, fiat onramps and market-making. The company also said it would allocate more resources to growing its potential user base, as well as pursue other business partnerships.

“Blocktrade is more than a classic crypto exchange: we are building a complete ecosystem around digital assets, which provides our users with much more than just access to trading tools,” said Bernhard Blaha, who was appointed the CEO of Blocktrade in late 2020.

Blocktrade was founded in 2018 but was later acquired by Cryptix AG, a Swiss venture capital firm that specializes in digital payments. Under the leadership of Cryptix, Blocktrade underwent a securities offering in early 2021, attracting investments from over 6,000 participants across Europe.

Crypto-focused startups have generated billions of dollars in funding this year, a testament to the growing appeal of blockchain and cryptocurrencies among venture capitalists and other private investors. Exchanges have been at the center of the funding frenzy, with the likes of Mercado Bitcoin, Bitso, FTX and Pintu generating nearly $1.4 billion in funding over the past few months.

These companies follow on the heels of Coinbase’s massive IPO in April that further pushed digital currency trading into mainstream consciousness.

Crypto trading is likely to intensify now that more investors have confirmation of a two-pronged bull market for Bitcoin (BTC) and other assets. The BTC price smashed through $46,000 on Monday amid news that U.S. lawmakers are planning to introduce new crypto-focused amendments to the infrastructure bill.

Bank of France, Swiss Crypto Bank Test Securities Settlement Using CBDC

June 23, 2021 Bitcoin.com

Banque de France tests digital currency-based securities settlement

June 21, 2021 Coin Telegraph

CBDC

The Bank of France has completed a central bank digital currency pilot for securities transactions in collaboration with Swiss crypto bank SEBA.

The central bank of France — Banque de France — is continuing its work on the development of a European central bank digital currency (CBDC).

On Monday the bank officially announced the successful completion of a CBDC experiment with major Switzerland-based cryptocurrency bank SEBA.

Conducted in collaboration with SEBA, Banque Internationale à Luxembourg, and Luxembourg central securities depository LuxCSD, the experiment used a CBDC to simulate the settlement and delivery of listed securities on TARGET2-Securities (T25), a European securities settlement engine.

SEBA purchased securities from Banque Internationale à Luxembourg, with post-trade settlement managed by LuxCSD.

Nathalie Aufauvre, general director of financial stability and operations at Banque de France, said that the latest CBDC test demonstrated the possibilities for conventional finance systems and distributed systems to interact. “It also paves the way for other alliances in order to benefit from the opportunities offered by financial assets in a blockchain environment,” Aufauvre said.

The bank noted that the new CBDC test is part of an experimental CBDC program launched in March 2020, that aims to test CBDC integration for settlements. The program’s other experiments will continue until mid-2021 as Banque de France, in addition to other central banks in Europe, tests the viability of CBDCs.

Luxembourg PM wants nation to be the ‘digital frontrunner’ in blockchain

April 27, 2021 Coin Telegraph

Coin Telegraph

Prime Minister Xavier Bettel said that he was "not a technical person" or a developer, but still backed blockchain technology for the future of Luxembourg.

One of the smallest countries in Europe is aiming to be comparatively progressive in its adoption of blockchain and cryptocurrencies, according to the nation's leadership.

Speaking in a pre-recorded message to attendees of the Luxembourg Blockchain Week conference, Prime Minister Xavier Bettel said the country is planning to "keep looking forward" and "keep taking risks" when it comes to innovative technology like blockchain. Bettel described blockchain as mainly about "cryptocurrencies and hype," jokingly saying he could create a non-fungible token, or NFT, of his scarves and "make a lot of money in a very short time."

"My government's goal is to make out of Luxembourg the digital frontrunner it already is,” said the PM. “It is in the frontrunner’s nature to keep progressing, rather than preserving the lead of the moment.”

Serving as prime minister since 2013, Bettel clarified that he was “not a technical person” or a developer. However, he said he was "100% convinced of technology that can facilitate our lives and help us focus on our human relationships."

Many consider Luxembourg to be one of the most proactive countries around blockchain and crypto. The local government previously labeled cryptocurrencies as “intangible assets” that are not subject to income tax until they are exchanged for fiat. In addition, the country is home to the payment institution behind cryptocurrency exchange Bitstamp.

Luxembourg Blockchain Week is a one-week conference organized by the Luxembourg Blockchain Lab, being held from April 26 to April 30.

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