SECs are warming up to digital assets; Nervos rolls out its token standard; Grayscale hits a milestone

RedBlock Newsletter: Week Ending November 22nd

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It’s a new week, and a new week brings new digital asset developments! This week, we cover the growing trend of SEC’s around the world warming up to digital assets, a new token standard hitting the digital asset space, a great week for Grayscale Investments, and more highlights.

For this week’s research report, we cover TokenSoft Inc. Check it out in our research hub.

And now, this week’s news…

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1. Pakistan’s SEC Signal’s Regulatory Clarity of Digital Assets

The SEC of Pakistan is showing signs that it seeks to introduce a new regulatory framework for digital assets, based on the fact that it released a paper outlining the way forward to operating and regulating them.

This is another instance in a growing trend of focused steps taken by SEC’s around the world towards regulating and allowing the stable use of digital assets- you might remember, from our past newsletters, reports of the Nigerian SEC and US SEC also taking friendly stances towards the digital economy.

What is interesting about the paper released by Pakistan’s SEC is that it entertains a “Laissez-Faire economic policy. Meaning… there would be lesser government or regulatory interference, whilst the SECP would develop its policies upon observing Pakistan’s market behavior.” (AMBCrypto)

2. Thailand’s SEC Makes Revisions to Support Digital Asset Companies

This week also saw Thailand’s SEC revise regulatory rules to better support digital asset businesses. Specifically, the changes affect “net capital requirement rules for brokerages and securities firms, including those in the digital assets sector”.

One of the most promising parts of the rule changes is that digital assets would be regarded as capital funds, taking them out of legal gray area. There is a caveat, however, as any one firm’s amount of digital assets will be limited to 50% of total asset value. (NASDAQ)

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1. Nervos Launches sUDT

Nervos Network, a China-based public blockchain network, has recently launched its own token standard set to rival that of Ethereum’s ERC-20. Called the sUDT standard, it will “allow blockchain or distributed ledger tech (DLT) developers to create and issue their own tokens on the Nervos network.”

According to Crowdfund Insider’s article that broke the news of the new token standard, one big differentiator is that sUDT gives the “users full ownership and control of their assets”, making it especially attractive to DeFi platforms. (Crowdfund Insider)

2. Deutsche Bank Makes an Exciting Prediction

A recent report published by Deutsche Bank has asserted that digital currencies will replace cash in the future. This report, like many actions taken by financial institutions and governments alike, comes out of an assessment of what a post-Coronavirus economy should look like.

This report not only wagered that a CBDC replacement of cash will take place, it also asserted that a European CBDC needs to be developed and adopted in order to keep European independence when it comes to payment solutions. (CoinTelegraph)

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1. Grayscale Hits a Milestone

A rather substantial milestone was reached this week, as Grayscale Investments, a leading digital asset investments firm, reported that it had over $10 billion in crypto assets under management. This can be attributed not only to the increase in value across the cryptocurrencies held by Grayscale, but also its recent uptick in capital inflow.

Grayscale’s success should serve as a signal to more institutional investment firms that digital assets will have strong yield, not only in the short run, but long-term as well. (Coindesk)

That does it for this week’s headlines. Thank you for reading, and be sure to share the knowledge!

References

Regulatory News

1. “Pakistan’s SEC is studying a regulatory framework for digital assets”

2. Thai SEC Revises Net Capital Rules in Bid to Open Liquidity, Support Digital Asset Businesses: Report”

Industry Updates

1. “China’s Public Blockchain Network Nervos Launches sUDT Token Standard to Compete with Ethereum ERC-20”

2. Deutsche Bank: Central bank digital currency will replace cash in long term”

Investment and Financing

1. “Grayscale’s Crypto Assets Under Management Break $10B”

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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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