Seeds of Wisdom RV and Economic Updates Tuesday Evening 11-5-24

06/11/2024

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COINBASE DERIVATIVES TO LAUNCH SILVER AND STELLAR FUTURES

Coinbase Derivatives is expanding its portfolio of CFTC-regulated products with the introduction of futures contracts for silver (SLR) and stellar (XLM) in retail sizes on November 11.

More Options for Retail Traders With Silver (SLR) and Stellar (XLM) Futures

The latest addition to Coinbase Derivatives which already includes bitcoin (BTC), ethereum (ETH), bitcoin cash (BCH), litecoin (LTC), DOGE, SHIB, AVAX, DOT, LINK, Gold, and Oil will expand the company’s offering for retail traders.

Coinbase’s primary goal in launching new futures contracts is to create diversified markets that support risk management and price discovery.

This informed the offering of the contracts in retail sizes, 50 troy ounces of silver and 5,000 stellar, removing obstacles for traders of all skill levels and enabling more participation in the futures markets.

In the blog post, Coinbase shared that adding traditional commodities such as silver along with a top cryptocurrency in stellar will create a more holistic trading environment.

Along with gold, silver has long been seen as a strategic asset that can provide some protection from market volatility and inflation. Stellar is well-known for providing quick and affordable cross-border payment solutions, adding a unique element to Coinbase’s offerings in digital asset derivatives.

CFTC-regulated derivatives are financial contracts whose value is derived from an underlying asset. These contracts are overseen by the Commodity Futures Trading Commission (CFTC) to ensure market integrity, investor protection, and systemic risk mitigation.

@ Newshounds News™

Source: Bitcoin News

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EUROCLEAR, HSBC JOIN SINGAPORE’S GL1 PUBLIC PERMISSIONED BLOCKCHAIN INITIATIVE

Five banks have been working with the Monetary Authority of Singapore (MAS) to flesh out its vision of the Global Layer One (GL1) blockchain, a public permissioned blockchain network that could form the foundation of numerous applications.

The five institutions are BNY, Citi, J.P. Morgan, MUFG and Societe Generale-FORGE. They will now be joined by HSBC and Euroclear. Some of the project’s scope has also been expanded.

There’s some crossover between the GL1 concept and the BIS’s unified ledger. Both aim to create a single infrastructure that will support multiple applications and asset classes. GL1 aims to enable trading, settlement, payments, collateral, corporate actions and more on a shared network.

When the group published the report on the first phase of work in June, we noted a willingness to embrace disruption by eliminating the need for key roles performed by central securities depositories (CSD). However, now a CSD (Euroclear) is one of the architects.

A major contribution that Euroclear brings is the digital asset securities control framework it developed with the DTCC and Clearstream.

That framework outlines six high level principles below and them maps each to risks and the specific controls to address those risks.

The six principles are:

▪️Legal certainty
▪️Regulatory compliance
▪️Resilience and security
▪️Safeguarding customer assets
▪️Connectivity and interoperability
▪️Operational scalability

Hence, MAS has created a new financial market infrastructure (FMI) working group to focus on these control principles, which will involve other FMIs.

Expanded GL1 scope
These principles will be applied to settlement arrangements for cross border transactions on FMIs and collateral management, amongst other applications.

Perhaps the most challenging new task is to develop a business model that doesn’t just work for banks but other ecosystem players as well.

The group will also develop specifications for tokenized asset lifecycles and programmable compliance.

We’d observe that as the group gets larger, it might require compromises as different participants may have worked on separate standards, which may not always be compatible. Developing common ground is a key path to interoperability.

Meanwhile, yesterday MAS outlined its vision for transitioning tokenization from experimentation to commercialization. GL1 is one of four pillars in that process.

@ Newshounds News™