The Crypto Compass Issue #45

Hello to our dear readers!

In recent developments in the blockchain and cryptocurrency space, major players are introducing groundbreaking services. Binance has launched a versatile Web3 wallet, while JPMorgan is pioneering with programmable payments on its JPM Coin platform. HSBC is expanding into digital asset custody, including tokenized securities, and Singapore's dtcpay is rolling out a hybrid fiat-crypto payment system. These initiatives highlight the growing integration of traditional finance with innovative blockchain solutions, marking a significant shift in the financial and technological landscapes.

Binance Launches Web3 Wallet for Enhanced DeFi Engagement

Binance has introduced a new Web3 wallet at its Blockchain Week conference in Istanbul, marking a significant expansion into the decentralized finance (DeFi) ecosystem. Compatible with 30 blockchain networks, the wallet aims to provide a comprehensive tool for self-sovereign finance, according to CEO Changpeng 'CZ' Zhao. This move places Binance in direct competition with established players like MetaMask and Trust Wallet, the latter being a Binance acquisition.

The wallet, leveraging Trust Wallet's newly announced Wallet as a Service (WaaS) technology, offers features such as asset management and cross-chain transfers, aiming to simplify the development of Web3 wallets. Users can access the wallet via Binance's mobile app, which facilitates various DeFi activities, although KYC completion is mandatory. To enhance security against potential hacks and key thefts, Binance's wallet employs multi-party computation (MPC) to eliminate the need for memorizing seed phrases while maintaining security and self-custody advantages. This launch reflects Binance's commitment to enabling a user-friendly and secure environment for users venturing into Web3.

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JPMorgan Debuts Programmable Payments on JPM Coin Blockchain Platform

JPMorgan has advanced its blockchain capabilities with the introduction of programmable payments on its JPM Coin system. Spearheaded by Onyx, JPMorgan’s blockchain unit, this new feature allows for the automatic execution of transactions based on predefined rules, enhancing efficiency and reducing the need for manual processing. Particularly beneficial for institutional clients, these programmable payments improve treasury functions by enabling more effective management of funds, especially during non-working days, as JPM Coin operates 24/7.

Initially tested with Siemens AG in 2021, the feature has now officially launched, with companies like FedEx and Cargill expected to adopt it soon. Despite processing $1 billion in daily transactions, JPM Coin's volume is still a fraction of the $10 trillion handled daily through JPMorgan's traditional payment systems. Looking ahead, JPMorgan aims to extend JPM Coin’s services to retail consumers, marking a significant step in integrating blockchain technology into mainstream financial operations.

HSBC Expands into Digital Asset Custody Services for Institutional Investors

HSBC is set to broaden its digital asset services by offering custody for tokenized securities, such as bonds, to institutional investors starting in 2024. This move comes shortly after the bank's introduction of tokenized gold ownership. However, HSBC will limit its custody services to tokenized securities, avoiding other cryptocurrencies and stablecoins due to their largely unregulated nature. The bank plans to partner with Metaco, utilizing its Harmonize product, which aids institutions in tokenization, crypto custody, and smart contract management. This integration is designed to align with existing financial systems and facilitate the representation of assets on distributed ledgers.

The decision by HSBC reflects a growing interest from asset managers in digital asset custody and fund administration. It also aligns with the broader financial industry's embrace of tokenization, as seen in the bank's earlier announcement about its HSBC Orion platform for digital bond issuance and the trading of tokenized gold via the HSBC Evolve platform. While HSBC's future crypto-related offerings remain unconfirmed, this development signifies the bank's increasing involvement in the digital asset market.

Happenings of the week

• Former FTX, Alameda Executives to Start New Crypto Exchange: WSJ

• Bithumb plans to be first crypto exchange listed on Korea stock market: Report

• XRP Futures Traders Nurse $7M Loss as BlackRock ETF Rumor Causes Wild Price Swings

• Klaytn plans to explore ship-asset tokenization with Korindo, NEOPIN

• New Ethereum rollup takes a zero-knowledge approach to sharding

Dtcpay Launches Hybrid Fiat-Crypto Payment System in Singapore

Singapore-based dtcpay is introducing a novel payment system that integrates both fiat and cryptocurrencies for transactions in physical stores and online. The system, which includes Tether (USDT) among its cryptocurrency options, is a collaboration between dtcpay, open-source blockchain PlatON, and Allinpay International. PlatON will provide privacy-protected digital infrastructure, while Allinpay will contribute to developing smart terminals and digital interfaces. Both dtcpay and Allinpay are registered with the Monetary Authority of Singapore (MAS) as major payment institutions, underscoring their compliance with local regulatory standards.

Dtcpay's service will facilitate the exchange between fiat and crypto currencies and plans to add more cryptocurrencies in the future. The company has already established its presence in the digital payment landscape, offering point-of-sale and online checkout solutions. Recent partnerships with Sumsub for KYC services and Singapore POS provider Jeripay indicate dtcpay's expanding ecosystem. The launch of this payment system aligns with Singapore's reputation for progressive cryptocurrency regulation and a high adoption of electronic payments, even as the city-state explores central bank digital currency (CBDC) possibilities without a definitive plan for a retail CBDC.

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