Portugal sets the stage for strong fintech growth; China Construction Bank moves forward with digital securities; Bittrex now offers tokenized stocks

Week Ending December 13th

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Hi all! Greetings and welcome back to the RedBlock Newsletter!

We’ll start off with some news from us:

This week, we had the distinct honor of participating in the Singapore FinTech Festival and Singapore Week of Innovation and Technology (SFF x SWITCH) as our founder and CEO, Jeremy Zhou, spoke on a panel concerning DeFi and its impact in the real economy!

Read the full press release here!

Now, for the news this week, we saw regulatory developments in the US and abroad, a big move from China Construction Bank as well as our partners from PrimeTrust, and tokenized stocks, courtesy of the Bittrex Global Team.

And now, the highlights of this week’s digital asset news.

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1. The US Treasury is keeping its eye on FinTech

In an effort to assess the future of financial systems and fintech innovations’ impact on traditional financial entities, the US Treasury Department released a report this week, tasking regulators with keeping an eye on such innovations and assessing the risk posed by the introduction of stablecoins, among other fintech.

Specifically, the Financial Stability Oversight Council released the report, and aims to provide regulatory oversight to fintech companies, in the same way that oversight is applied to traditional financial entities. (NASDAQ)

2. The ‘STABLE Act’

A new law was drafted in the US House of Representatives, this week, that stipulates that private stablecoin issuers must “obtain a banking charter (or license) and approval from the Federal Reserve before they can issue a stablecoin.”

Entitled the ‘Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act’, the purpose of this proposed piece of legislation is to protect cryptocurrency users. However, this bill has received a lot of criticism since it was proposed, with opponents citing that it is misguided, and seeks to solve problems that digital assets are already designed to solve. (Bitcoin.com)

3. Portugal is embracing FinTech

A country that you will want to keep your eye on in the near future, due to its warm embrace of fintech, is Portugal. This year has seen Portugal announce plans to launch regulatory sandboxes as well as its establishment of the Fintech House, which is a hub for fintech companies.

A rather exciting part of the atmosphere surrounding fintech here is the plan to designate certain areas as Technological Free Zones. That is, Portugal wants to “have tailored regulatory regimes for each sector or industry” to encourage and facilitate each sector’s growth. (Fintechnews Switzerland)

1. PrimeTrust launches Prime Liquidity

Our partners at PrimeTrust have a big announcement- the launch of Prime Liquidity! This, according to PrimeTrust’s press release, is “a turnkey API-based liquidity engine that enables any fintech app to buy, sell, and hold cryptocurrency.”

This turnkey application, by its very nature, will make the integration of crypto assets into a fintech company’s products rather seamless. We here at RedBlock are proud to be partnered with a team that wants to fill out the digital asset ecosystem and promote its development! (PrimeTrust via PRNewswire)

2. China Construction Bank is moving forward with its plans to issue blockchain-based digital securities

You may remember that China Construction Bank (CCB), not too long ago, was set to become the first financial institution in China to issue blockchain-based digital securities in the form of bond issuance.

Well, after a delay of this pioneering issuance plan, CCB is back at it. This time, with different capital market players involved. One of the largest banks in the world in terms of assets, CCB is now exploring a “proof-of-concept for the bond… with STACS, a Singaporean fintech development firm that specializes in the use of blockchain technology in capital markets”. CCB is also working with Malaysia’s national stock exchange and the Labuan Financial Exchange. (Cointelegraph)

1. Bittrex is now offering tokenized stocks

Bittrex Global, a cryptocurrency exchange, just availed tokenized stocks to its user base through a partnership with Digital Assets AG.

The value proposition is quite obvious, as these tokenize stocks can operate around the clock, unlike their traditional counterparts. What Bittrex hopes to do here is lead the way towards the adoption of security tokens, as they believe that “the trading of tokenized stocks also represents a step towards the proliferation of STOs, or security token offerings.” (coincodex)

Thanks for reading and don’t forget to share the knowledge! Bye for now. We will see you next week! 👋

References

Regulatory News

1. “US Treasury Wants Regulators to Watch for ‘Potential Risks’ in Digital Asset Innovation”

2. New Draft U.S. Law Will Make It Illegal to Issue Stablecoins Without Federal Reserve Approval”

3. Portugal’s Fintech Industry Continues to Grow and Mature on the Back of Favorable Regulation”

Industry Updates

1. Prime Trust Adds Bitcoin Liquidity to the B2B PrimeCore Platform Enabling Fintech Innovators to Provide Digital Asset Investing, Buying and Selling”

2. China Construction Bank’s blockchain bond efforts take a new direction”

Investment and Financing

1. Bittrex Global Crypto Exchange Will Be Listing Tokenized Stocks”

Visit us at: redblockcap.com

For questions and business inquiries, contact us at info@redblockcap.com

About RedBlock

RedBlock Inc is a digital investment and fintech firm leveraging blockchain technology for asset digitization and management, from issuance to secondary liquidity. Its global network of capital market participants, including issuers, broker-dealers, secondary exchanges, funds, liquidity providers and custodians, are supported by its end-to-end blockchain-powered asset management platform. RedBlock also manages an investment fund to support companies in its ecosystem that align with its investment thesis. With a growing track record and pipeline, the RedBlock team hails from top tier global investment banks, venture capital firms and blockchain technology companies.

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