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Mbridge wholesale CBDC project to launch MVP soon with UAE Central Bank

Mbridge wholesale CBDC project to launch MVP soon with UAE Central Bank

In a speech given by Hong Kong Monetary Authority (HKMA) CEO Eddie Yue, he discussed the whole sale CBDC ( Central Bank Digital Currency) project Mbridge stating that the launch of a minimal viable product ( MVP) would be soon, with participation of UAE Central Bank, Bank of China, BIS, Bank of Thailand and some new entrants.

In May 2023, The Central Bank of the United Arab Emirates and the Hong Kong Monetary Authority in a bilateral meeting in Abu Dhabi  agreed to enhance collaboration between the two jurisdictions on virtual asset regulations and development. 

Mbridge is the creation of  Innovation Hub of the Hong Kong Monetary Authority, BIS (Bank of International Settlements). In September 2022, the Central Bank of the UAE announced the completion of the first CBDC pilot involving real value transactions and four jurisdictions, using mBridge, custom developed DLT platform.

As per the news 20 banks participated in the final CBDC pilot, with over 160 transfers and FX exchanges carried out, totaling $171 million HK dollars ( $22 million)  in transfers and FX exchanges and $91 HK million in issuances equivalent to ( $12 million) .”

The Central Bank of the UAE (CBUAE) participated in “mBridge” project with partners from the Bank for International Settlements (BIS), Innovation Hub Centre in Hong Kong, the Hong Kong Monetary Authority (HKMA), the Bank of Thailand (BoT), and the Digital Currency Institute of the People’s Bank of China (PBoC).

According to Yue, “ Our mBridge project, which is a collaboration with the BIS and a number of central banks including the People’s Bank of China is also pressing ahead. Our latest pilot test has demonstrated that this wholesale central bank digital currency platform can speed up cross-border payments at reduced cost and with better transparency. We are expecting to welcome more fellow central banks to join this open platform. And very soon we will launch what we call a minimum viable product, with the aim of paving the way for the gradual commercialisation of mBridge.”

He expressed his hope that this new innovative platform will help resolve longstanding pain points in cross-border payments and enhance the efficiency of the global value chain.

Bahrain ABC Bank goes live with JP Morgan’s Blockchain payments

Bahrain ABC Bank goes live with JP Morgan’s Blockchain payments

Bahrain based ABC bank after two years of piloting, J.P. Morgan’s Coin Systems, a blockchain based permissioned system that serves as a payment rail and deposit account ledger and sits within Onyx by J.P. Morgan has gone live with the blockchain payments solution.

Prior to this ABC bank had been piloting GCC region’s first blockchain based cross border instant payment solutions as well as CBDC project with the Central Bank of Bahrain. In 2020 The Central Bank of Bahrain collaborated with J P Morgan and Bank ABC in a pilot scheme to introduce instantaneous cross border payment solution leveraging state of the art technology and digital currency. The pilot was successfully completed in 2022. 

As such the soft launch of the new blockchain payment service by ABC Bank, is in close collaboration with the Central Bank of Bahrain.  The Central Bank of Bahrain has supported the project by integrating and scaling the blockchain payments solution within the Kingddom’s payments landscape.

On this occasion, His Excellency the Governor of the Central Bank of Bahrain, Mr. Rasheed AlMaraj, stated, “After working closely with JP Morgan and Bank ABC over the past two years to experiment the execution of cross-border commercial transactions between Bahrain and the U.S., leveraging the J.P. Morgan Coin System, we are pleased to witness the soft launch of this innovative banking solution by a Bahraini-based bank.  This initiative aligns with the CBB’s strategic vision to embrace innovation and digitalize the Kingdom’s financial services sector by eliminating inefficiencies that exist in traditional cross-border payment railways, facilitating trade between Bahrain and the U.S., and thereby inducing economic activity. We commend Bank ABC on their commitment to enhance their banking offerings by leveraging advanced global technologies.”

Mr. Sael Al Waary, Bank ABC Group CEO, said: “As an international bank operating across five continents, Bank ABC Group is committed to introducing innovative products to our home market and across our wider network. Offering high-value cross-border payments via the J.P. Morgan Coin Systems service, allows us to reduce traditional settlement periods considerably as well as being more cost-effective for our clients. We remain steadfast as a key enabler of Bahrain’s vision for a digital economy. We would like to thank our partners the Central Bank of Bahrain for their commitment and leadership and J.P. Morgan for their leading role in advancing cross-border payments for banking services.”

Naveen Mallela, Global Head of Onyx Coin Systems, said “Bank ABC has been one of the earliest adopters of the JPM Coin offering and we are delighted to launch the first of its kind commercial payment offering between J.P. Morgan and Bank ABC using distributed ledger rails. This enables cross-border commercial transactions to be executed between Bahrain and US corridors instantly, atomically and with certainty.”

While the offering has been launched with USD and locations involving Bahrain, US, UK, Singapore, Hong Kong, additional locations and currencies, notably Euro, are in the pipeline. Going forward with the planned introduction of programmable payment offerings, it will enable mutual corporate clients to leverage event driven and automated payouts enabling a dynamic and real time treasury management.

Dubai’s Virtual asset regulatory authority issues stablecoin regulations

Dubai’s Virtual asset regulatory authority issues stablecoin regulations

Dubai’s Virtual asset regulatory authority ( VARA) has updated its virtual asset rulebook and added new regulations with regards to what it calls Fiat referenced virtual asset ( FRVA) better know to most as virtual assets pegged to a stable value, or stablecoins.

As per VARA definition, “ Fiat-Referenced Virtual Asset (FRVA) means a type of Virtual Asset that purports to maintain a stable value in relation to the value of one or more fiat currencies but does not have legal tender status in any jurisdiction. An FRVA is neither issued nor guaranteed by any jurisdiction and fulfils its functions only by use and acceptance within the community of users of the FRVA.”

However VARA also notes an exception and states that any FRVA, i.e. stablecoin pegged to the value of the UAE currency, the AED will not be approved as it will remain under the sole and exclusive regulatory purview of the Central bank of the UAE.

In addition FRVAs exclude assets that  are representations of any equity claim; issued by central banks acting in their monetary authority capacity [e.g. central bank digital currencies [CBDCs]]; or  are tokenized bank deposits used only for interbank settlement purposes.

It also excludes reference Currency means, in relation to an FRVA, a VARA-approved fiat currence, the value of which an FRVA purports to maintain a stable reference to;and which is controlled by a central bank of any country[ies] or territory[ies] which are not subject to any sanctions in accordance with Federal AML-CFT Laws; as well as  the status of legal tender; and  which is required to be accepted within a given jurisdiction.

Issuers of FRVAs will have to ensure reserve assets, a pool of assets maintained in accordance  Rule III.B of these FRVA Rules and as approved by VARA. Reserve Assets are not Client Money or Client VAs, as defined in the Compliance and Risk Management Rulebook.

The issuance of an FRVA is a Category 1 VA issuance and as such is a virtual asset (VA) Activity. 

In addition VARA states that currencies of sanctioned countries or territories. VASPs may not have as a Reference Currency any currency issued by any country[ies] or territory[ies] which are subject to sanctions under Federal AML-CFT Laws.

VARA may, in its sole and absolute discretion, designate any VASP Licensed to issue an FRVA as a Significant FRVA Issuer at the time of issuing a Licence or anytime thereafter.

In designating a VASP as a Significant FRVA Issuer, VARA may consider all factors relevant to the VASP and/or the FRVA issued by the VASP, including but not limited to  the number of holders of the FRVA; the value of circulating and/or outstanding supply of the FRVA;  the value of the Reserve Assets maintained by the VASP; the number and value of transactions in the FRVA; whether the VASP and/or its affiliates carry out any other VA Activity[ies] and/or financial services in Dubai, or provide services similar to VA Activities and/or financial services in other jurisdictions; interconnectedness with licensed financial institutions and/or VASPs; and/or the business, structural and operational complexity of the VASP in relation to the FRVA issued by it.

MRHB network partners with Bahrain’s Shari’ah bureau for DeFi product

MRHB network partners with Bahrain’s Shari’ah bureau for DeFi product

The Singapore headquartered,MRHB Network which provides interest-free DeFi, NFT and halal crypto asset opportunities has partnered up with Shari’ah Review Bureau (“SRB”), a Bahrain-based Shari’ah advisory firm, to independently assess and review its new product EMPLIFAI (Earnings Amplified with Algorithms & AI) which aims to provide Sharia-compliant passive income.   

“The MRHB ecosystem aims for a wide array of crypto-based DeFi solutions”, explained Naquib Mohammed, Founder and CEO of MRHB Network. “After a successful launch of the Sahal Wallet app, a multichain self-custodial digital wallet, we are pleased to present our new product to the Muslim community – a liquidity harvester product, EMPLIFAI which incorporates a Sharia-compliant mechanism and structure for users to invest and generate passive income.”  

EMPLIFAI is designed to generate income mainly from DeFi activities such as yield farming, liquidity mining, bridge protocol fees and arbitrage opportunities. It will be rolled out in two phases, namely V1 and Version Pro. V1 will be for retail users whereas Version Pro (in the pipeline) will be catered to institutional participants.  

DeFi (decentralized finance) is a rapidly growing sector within the digital asset industry. The value locked in DeFi protocols has grown from billions to tens of billions of dollars in just a few years, and the space is expected to continue its growth in 2023. 

Commenting upon the engagement with SRB, Naquib Mohammed said, “Bringing SRB on board to review, assess and eventually audit EMPLIFAI’s processes, legal documents and the passive income mechanism in light of Shari’ah further strengthen our trust for our shareholders and the users. SRB is one of the few Shari’ah advisory firms that works with fintech companies with a diverse product offering and we leveraged on their experience.”   

Yasser S. Dahlawi, Founder and CEO of SRB added, “EMPLIFAI product exhibits a growing trend in the community that seeks an alternative investment and return from blockchain asset class. We will continue to help MRHB in its product enhancement and Shari’ah compliance as it scales its offering in the blockchain sphere with Version 2.”

With the growing development and success of MRHB Network halal crypto ecosystem, MRHB is currently closing its bridge to Series A round from strategic partners and expanding to the Kingdom of Saudia Arabia before the close of 2023. 

Naquib Mohammed speaking to Laraontheblock states, “ I am extremely proud of the MRHB Shariah Team and the Engineering Team, to have successfully launched an industry first liquidity harvesting protocol that is tailored to address the faith based crypto community. Testament to our efforts is the approval stamp of the Central Bank of Bahrain regulated SRB, who certified our product and architecture without a single correction remark. This itself proves the high quality of the deliverable that the teams have succeeded in creating. Emplifai is a gift of MRHB to the world, where the halal oriented community can reap the benefits of DeFi, just not with compromising their beliefs , but also their principal amount. The nature of Emplifai is such that it preserves the defi user from the volatility of the crypto market, hence a relief to a newbie.”

UAE regulated Crypto broker RAIN now connected with local banks

UAE regulated Crypto broker RAIN now connected with local banks

UAE regulated crypto broker RAIN which recently received its virtual assets licens from ADGM in Abu Dhabi is now providing its customers with the ability to work with local banks, using their accounts to make instant deposits and withdrawals of AED without any transfer restrictions.

As per their press release, this further enhances our banking infrastructure and users in the UAE can benefit through a secure and seamless transition from fiat currency to virtual assets.

In addition to the innovative banking stream, Rain ADGM has expanded its OTC (Over the Counter) service, offering high-net-worth and institutional clients a white-glove, institutional-grade brokerage facility for execution of  larger virtual asset trade orders. The OTC Desk will provide clients with a customized trading experience and block trading for precise execution at the best value.

Rain OTC Desk will facilitate seamless and secure over-the-counter (OTC) trading for clients, by offering a more customized execution and settlement service, and sourcing competitive pricing, This exclusive offering will be available to high-net-worth and institutional clients, further solidifying Rain ADGM’s commitment to delivering cutting-edge solutions to its diverse clientele.

Emmanuel Alamu, Global Head of OTC, added that “our integration with the local banking infrastructure is a comprehensive step forward in building a cohesive virtual asset community in the UAE. With near-instant bank deposits, we are now able to bring the quality of localised OTC services in the UAE materially closer to both the efficiency and depth of more established global virtual asset markets within Europe and Asia.”

UAE’s ADGM grants crypto custodian Changer an FSP license

UAE’s ADGM grants crypto custodian Changer an FSP license

UAE based changer.ae, a crypto custodian service provider has received  the Financial Services Permission (FSP) license by the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM).

With the FSP, Changer has become officially authorized to offer its services to individuals who are looking for a robust and reliable platform to hold their crypto currencies. Being uniquely positioned in the UAE, Changer focuses on protecting crypto based investors and informing the community about safety, risks, and crypto investments through its state-of-the-art custodian services.

Changer’s custody solution is an easy-to-use, all-in-one platform that offers customers simplicity at their fingertips while safeguarding their virtual assets. Individuals from all over the world can soon access the mobile application and use it to store their digital assets, with peace of mind that their investments are secure and always insured.

Changer’s enterprise-grade and robust infrastructure uses advanced encryption and multi-signature authorization to enhance the security of its wallets. Unlike most applications, Changer caters to investors looking for an independent provider of safe custody. By separating trading venue and storage, market participants are better able to ensure the protection of client capital.

Regulated by the world-class advanced regulatory framework of Abu Dhabi Global Market (ADGM), Changer offers clarity and transparency in its services. Since the crypto world is a very fast-paced one and can be overwhelming at times, Changer has been designed with our clients in mind, it is simple, straightforward, and user-friendly. The intuitive interface allows customers to easily manage their digital assets, make transactions, and monitor their account activity through one of the fastest and most efficiently designed platforms. Moreover, there is a dedicated team of experts that is available for support and to answer any questions our clients may have.

Nadeem Ladki, Senior Executive Officer of Changer, commented on the launch: “We would like to thank his excellency H.E Ahmed Jasim Al Zaabi, Chairman of ADGM, the Financial Services Regulatory Authority, and particularly the Authorization Team for granting us the FSP license. This license is an endorsement from one of the most reputable regulators in the world and marks Changer’s commitment to maintaining a transparent and secure relationship with ADGM, ensuring that all our clients’ virtual assets are safeguarded in the safest way possible”.

He added: “I would like to extend my heartfelt gratitude to the dedicated Changer team, our partners, and the regulators who have made the launch possible. Our combined hard work has made Changer come to life, soon to be offering individuals all over the world the possibility to protect their investments with cutting-edge security measures. With Changer’s services catering to a global audience, we are assisting in driving the UAE’s ambition to become a global center for the crypto industry and virtual asset community”.

Beyond the imminent launch of its custody solution, Changer plans to expand its services in the near future to offer its clients simplified fiat conversion and fiat escrow services thereby enriching its product portfolio.

UAE Deca4 partners with Hedera powered HashPack to bring Web3 to the MENA sports industry

UAE Deca4 partners with Hedera powered HashPack to bring Web3 to the MENA sports industry

UAE based Deca4, a specialised blockchain consultancy studio, and HashPack, a non custodial wallet built on Hedera Hashgraph DLT (Distributed Ledger Technology) platform have partnered together to bring Sphera World, which is leveraging the largest football and sports fans community in the Arab world with the latest technology and trends of Web3 NFTs, and Blockchain, into the world of non custodial wallets and the Hedera network.

Sphera world is powered by the largest sports media website in the Middle East, Kooora.com, and is backed by the Hashgraph Association. Sphera World is also incubated and managed by UAE Deca4.

May Chan, Co-Founder, and CEO of Hashpack stated, “This partnership is a monumental step towards our shared vision of expanding the reach of Web3 technology and bridging the gap between traditional Web2 users and the progressive Web3 ecosystem.”

She adds, “At HashPack, it has always been our mission to deliver an unparalleled user experience, exploring the transformative power of Web3 technology as a unique advantage for conventional companies and digital brands.”

Chan believes the alliance with Deca4 is a significant landmark as it goes beyond the tech stack and engages with community members and companies. The utilisation of Distributed Ledger technology needs to be harnessed effectively and this is done thoroughly by Hedera Hashgraph.

Mohammed Mahfoudh, Founder and CEO of Deca4 consultancy adds, “Working with HashPack to bring Sphera World, powered by Kooora, with a staggering 30+ million active users, will provide a unified platform that meets the needs of Web savvy users while introducing Web2 natives to the Web3 world.”

Above all, the project is supported by Hashgraph Association, a non profit organisation that promotes and provides funding for innovation, research and development for the benefit of economic inclusion and with a positive environmental, social, and governance (ESG) impact.

Kamal Youssefi, President of The Hashgraph Association, explained, “We are proud to be supporting organisations in the MENA region, especially those in the sports and gaming industries which are set to grow by 8.7% by 2026 according to The World Economic Forum. Our association is here to support companies in their journey towards Web3, helping them deliver unmatched value to stakeholders and users.”

BITMAIN enters MENA through collaboration with Oman’s Exahertz and MoonWalk Systems

BITMAIN enters MENA through collaboration with Oman’s Exahertz and MoonWalk Systems

BITMAIN, crypto mining leading ASIC manufacturer enters MENA through a collaboration with Oman’s Blockchain Data center and technology park Exahertz and MoonWalk. This collaboration marks a significant leap forward as Exahertz takes on the role of hosting upwards of 10,000 state-of-the-art BITMAIN machines in the pioneering Exahertz Technology Park, nestled in Salalah, Oman. According to the press release, “This isn’t just any partnership, it’s BITMAIN‘s first-ever hosting venture in the Middle East and a groundbreaking initiative for hydro computers worldwide.

The Exahertz Technology Park, standing tall as the Middle East’s largest private Blockchain Data center, underscores Exahertz’ unwavering commitment to innovation and progress.” Exahertz International, recently kicked off a pilot phase of Exahertz Technology Park in Salalah. In collaboration with their strategic partners Moonwalk Systems, they rigorously testing and optimizing the hydro systems to ensure peak performance in local conditions and challenges. An impressive highlight by Exahertz Team involves using treated grey water to efficiently cool down the data center computers.

This innovative approach maximizes efficiency while staying environmentally responsible. The treated grey water, after being thoroughly cleaned, is returned to the earth responsibly, reflecting the commitment to eco-friendly practices. Jad Fredrick Kharma, CEO of Exahertz, articulate his vision, affirming, “Our mission transcends the introduction and adoption of cutting-edge technology; we are unwavering in our commitment to elevate Oman’s proficiency and prominence within the domains of modular IT infrastructure, the innovative design of hyper-scale data centers, and the cutting-edge landscape of high-performance blockchain technology.

In Sam Ferdows’ words, the CEO of Moonwalk Systems, “We’re excited about this partnership with BITMAIN and look forward to being a key partner for them in the region. Our goal is for Exahertz Technology Park to be the benchmark for all blockchain data centers in the region and the world for hydro solutions.” BITMAIN‘s Director is equally enthusiastic about this strategic partnership. He emphasizes, “This collaboration allows BITMAIN to have a stronger presence in the region, utilizing our advanced technology.”

 

Varys Capital to enter GCC market with $75 million digial asset blockchain fund based out of UAE

Varys Capital to enter GCC market with $75 million digial asset blockchain fund based out of UAE

Venture capital fund Varys Capital is looking to enter the GCC market, and is working to raise $75 million for its equity fund focused on blockchain innovation. The fund aims to achieve long-term growth from a curated portfolio of high-quality, early-stage businesses utilising blockchain to solve addressable needs in the wider software, gaming, and finance industries. 

To govern its entry into the UAE, Varys Capital has secured reputable local services, including Al Tamimi, one of the GCC’s most prestigious law firms, as its primary counsel.

According to the press release, the company has received inquiries from local institutions and prominent investors. The fund has 12 commitments in place across decentralised (DeFi) and centralised (CeFi) finance, GameFi/Web3, infrastructure, and emerging technologies.

Darius Askaripour, Managing Partner, Varys Capital said, “We are looking at entering the UAE market first encouraged by supportive local government directives, its high innovation levels, robust infrastructure, and forward-thinking mindset, but plan to deploy across the Middle East and North Africa with multiple deals already at the final stages of due diligence.”

The move comes as the International Market Analysis Research & Consulting Group (IMARC) forecasts the GCC’s digital asset management market will be worth US$222 million by 2028, registering a compound annual growth rate of 12.9% over the next five years.

Since 2018, Varys Capital has managed an equity-focused venture fund and a distinguished quantitative trading fund. Its blockchain venture fund boasts a total value to paid-in capital returns of 440% and over triple-digit internal rate of return since capital deployment in March this year.

The fund has made five investments in prominent blockchain, cloud technology, and games projects such as modular blockchain network developer Movement Labs, games studio SunSpear Games, blockchain enhancer for mobile operators Bloxtel, competitive multiplayer first-person shooter games producer Shrapnel, and cloud hardware and software developer, Nirvana Labs. Two of the projects have already experienced significant uprounds boosting returns

UAE’s ADQ Silal launches blockchain powered food traceability platform

UAE’s ADQ Silal launches blockchain powered food traceability platform

UAE’s ADQ, Silal, which enhances agriculture and food safety in Abu Dhabi by diversifying and stimulating food production sources via technology, research and knowledge transfer initiatives for farmer, has just launched its blockchain powered platform to trace the lifecycle of food from farm to fork.

As per the news announcement, using the new traceability service is as simple as scanning the QR code of a Silal Fresh product through the Silal App. This traces the journey of crops, assuring users that the data appearing on their screen is credible.

This move is a milestone towards achieving food credibility, gaining customers’ trust and loyalty.

Enhancing food chain transparency is important for companies to ensure consumers of the quality of their products and to sustain efficient supply in the market, prevent foodborne illnesses, and detect the source of a problem in the event of an outbreak.

Knowing the source of food is essential for good health and wellbeing, which drove Silal to exert efforts to give full access to explore the origins of Silal Fresh products.

Through its traceability project, Silal aims to create a resilient supply chain system that advances agricultural goals and sustainable practices.

ADQ had set up a $200 million fund to invest in Digital assets, supplychain and Fintech. 

ADQ has been investing in various startups, including blockchain ones, and recently UAE Fuze has raised $14 million led by Further Ventures which is backed by ADQ. 

ADQ is also partnered to create a bitcoin mining farm with Marathon Digital.