Qatar Financial Center finalizes digital asset framework to become destination of choice for tokenization

Qatar Financial Center finalizes digital asset framework to become destination of choice for tokenization

While Qatar has not opened up to the crypto scene, its financial center is opening up to digital assets enabling them to tokenize asset classes to facilitate the needs of qualified investors with its digital assets framework.

Henk Jan Hoogendoorn, Chief Financial Sector Officer, at Qatar Financial Center Authority speaking to Lara on the Block, stated, “ We are developing our digital assets framework to allow for public tokenization of assets, including securities, bonds, and real-estate.”

He emphasizes that they will not go into crypto, NFTs (Non Fungible Tokens) or commodities at this time.

Hoogendoorn had discussed digitization in the financial sector in Qatar as well as their digital assets project and the new Fintech strategy of QCB (Qatar Central Bank) during a fireside chat on Digitizing the Financial Sector in Qatar, moderated by Robert Wigley OStJ, BSc, Hon DBA.

Furthermore, Aleksander Biesaga, Acting Project Manager, Roland Berger in a recent LinkedIn post noted, “It was a pleasure to speak to the Qatar Financial Centre (QFC) Authority on unlocking a new era of ownership, trading and investment via digital assets and tokenization.”

He was referring to the workshop by Roland Berger on the new digital assets framework for Qatar Financial Centre (QFC) Authority and Qatar Financial Centre Regulatory Authority (QFCRA).

Both entities QFC, and QFCRA, according to Hoogendoorn are developing and will facilitate the needs of qualified investors and investment firms to tokenize asset classes. He states, “We are looking forward to become a jurisdiction of choice.”

So it seems that while Qatar may not be warming up to crypto, it is moving forward  with its blockchain strategy and digital assets. In Q1 the Qatar Financial Authority signed an MOU with Blockchain entity Settlemint to forward digital asset industry and with R3 Blockchain firm for DLT (Distributed Ledger technology)  

UAE Zero Two purchases first largest single clean energy certificates to decarbonize its digital assets

UAE Zero Two purchases first largest single clean energy certificates to decarbonize its digital assets

UAE digital assets infrastructure company, Zero Two, part of sovereign wealth fund ADQ, has purchased 7.3 million megawatt hours of clean energy from EWEC (Emirates Water and Electricity Company), a leading company in the integrated coordination of planning, purchasing, and supply of water and electricity across the UAE. This is the largest single purchase of Clean Energy Certificates (CECs) to date and the first in the digital assets infrastructure sector.

The purchase agreement was signed by Ahmed Al Hameli, Chief Executive Officer of Zero Two; and Othman Al Ali, Chief Executive Officer of EWEC.

Under the purchase agreement, EWEC will provide Zero Two with clean energy certificates to decarbonize its operations and support the company’s progress against sustainability objectives.

Othman Al Ali, Chief Executive Officer of EWEC, said, “Our clean energy transaction with Zero Two provides EWEC with a unique opportunity to further accelerate the country’s energy transition and decarbonization of industries in line with the UAE Net Zero by 2050 strategic initiative.”

He added, “This first-of-its-kind transaction in the digital assets infrastructure sector, which also constitutes the largest ever single CECs purchase to date, demonstrates both EWEC’s and Zero Two’s commitment to supporting the nation’s sustainability and environmental agenda and is an example of the practical and tangible steps UAE entities can take to decarbonize their operations and address the pressing challenge of climate change.”

Ahmed Al Hameli, CEO of Zero Two, said, “The purchase of EWEC’s Clean Energy Certificates demonstrates our dedication to sustainability and commitment to decarbonizing our digital assets infrastructure. Operating our assets with clean energy enables us to support Abu Dhabi’s transformation into a sustainable economic powerhouse while also contributing to the UAE’s long-term vision of a net zero future.”

Zero Two recently partnered with Marathon Digital to build two  bitcoin mining farms in the UAE. 

UAE National Bank of Fujairah introduces new revenue streams with Blockchain supply chain platform

UAE National Bank of Fujairah introduces new revenue streams with Blockchain supply chain platform

As the National Bank of Fujairah received two awards for Best Innovation in Trade Finance” and “Most Innovative Trading Platform” for the second consecutive year at the MEA Finance Banking Technology Awards 2023, it announced that its integration of Finverity, a  blockchain-based supply chain financing platform  has resulted in reduced operational costs and the generation of new revenue streams.

In October 2022, Finverity, and the National Bank of Fujairah launch of a partnership to grow supply chain finance (SCF) and account receivables (AR) finance volumes in the MENA region. The partnership has started with Redington Gulf, which will enable the service to reach the maximum number of IT resellers in the UAE.

Under the partnership, Finverity provides a curated origination pipeline, deal structuring and an end-to-end technology platform for ongoing operations and reporting, with NBF underwriting and funding SCF and AR assets on Finverity’s marketplace. The partnership clearly recognizes the key role that Finverity’s platform plays in providing client-centric solutions that channel capital to eligible corporates, enabling them to access trade financing more effectively.

At the time, Venkiteswaran (Venki) Ramasubhramoni, Head of Equipment and Technology Finance at the National Bank of Fujairah, stated, “As a key lender in the technology finance space, NBF has chosen to partner with Finverity as its fintech partner to offer supply chain finance solutions. Given the strategic match, with both parties focused on IT-related trade, we see wider possibilities in this collaboration and the value it could bring. Access to pre-analyzed and pre-negotiated deals on Finverity’s marketplace provides NBF with an effective way to fund a diversified pool of SCF & AR transactions, shorten credit approval cycles and scale our books efficiently. In parallel, Finverity’s technology platform facilitates our total digital offering, ensuring more transparency of the underlying assets being funded, as well as a better user experience.”

The partnership aims to close the $1.7 tn funding gap in global Trade Finance by making Supply Chain Financing of mid-market companies economically viable around the world. We will achieve this through the use of technology and a new approach, providing a more efficient allocation of resources and fair access to capital worldwide.

UAE HAYVN records 19 percent increase in returns on its crypto index fund

UAE HAYVN records 19 percent increase in returns on its crypto index fund

UAE based HAYVN, a regulated digital asset management financial institution, has recorded returns of 19 percent increase on its crypto index fund since its launch in January 2023.

The index fund for cryptocurrency assets offers clients a diversified, low cost, and regulated strategy to invest in.

According to HAYVN CEO, Christopher Flinos, “The funds early success and HAYVN predictions for a positive long-term trend due to our carefully weighted Top 20 portfolio, has seen the HAYVN 20 become one of the leading fund benchmarks in cryptocurrency markets”.

The HAYVN 20 fund has three distinguishing features, first it is limits the maximum exposure to any one digital asset at 10% creating a more balanced portfolio. Secondly the fund rebalances monthly, allowing HAYVN 20  to capture new trends in the market by increasing its investment in the emerging winners as their market capitalization grows, while reducing exposure to cryptocurrencies which are declining in value.

Finally the fund has daily liquidity which gives investors the freedom to change their allocation anytime.

Flinos added, “Investing in the HAYVN Index Fund offers investors an opportunity to gain exposure to broader cryptocurrency markets without having to worry about managing individual coins and allocations themselves. With its initial track record and performance so far, it provides a solid option for those who want sustainable long-term exposure rather than concentration risk individual coins”.

Chief Technology Officer of IBM a blockchain, AI expert joins Saudi Central Bank

Chief Technology Officer of IBM a blockchain, AI expert joins Saudi Central Bank

Anthony Butler, the Chief Technology Officer for IBM MENA region who was based out of KSA, and is a blockchain, AI, metaverse expert has joined Saudi Central Bank (SAMA) as a senior advisor.

He announced the new position on LinkedIn saying, “I’m happy to share that I’m starting a new position as Senior Advisor at Saudi Central Bank – SAMA! As a senior advisor to SAMA I will be focused on  first of a kind applications of emerging technology, such as artificial intelligence, distributed ledger technologies, quantum, and advanced cryptography in support of payments innovations (such as CBDC, stable coins, and tokenization), transformation of Suptech/Regtech, green finance,  open finance, decentralized finance (DeFi), and cybersecurity.

Anthony Butler had spent 15 years as chief technology officer for IBM in the Middle East and Africa working in emerging technologies, with a specific focus on the application of artificial intelligence, blockchain and metaverse technologies.

Anthony is well versed speaker and writer on emerging technologies. On his Blog page he talked about the impact of emerging technologies, such as blockchain and artificial intelligence, on societies and economies. 

He also notes on his page, that he lives in and supports the development of one of the most exciting and future-oriented places in the world, the Kingdom of Saudi Arabia. 

In one of his articles he discusses the collapse of FTX currency exchange, and believes there is a need to evolve new models of decentralized finance that will mitigate risks. He adds that if a person does not own their keys they cannot own their digital tokens.

He notes, “Decentralized Finance (DeFi) is likely to hold the long term answer to much of this: decentralized exchanges will use blockchain technologies to remove the need for trust.  They will provide permissionless, transparent, exchange services where users will have self-sovereign custody of their digital assets without the need to transfer control to a centralized authority to manage on their behalf.”

Anthony Butler had also been involved in KSA Central Bank’s ABER CBDC project with the UAE Central Bank. At the time he noted in a tweet, “What is new and challenging is we are designing it so that it can be issued by two central banks simultaneously.  Many hard problems being solved and lots of lessons to be learned but exciting times ahead; and great example of the visionary leadership of both @SAMA_GOV and CBUAE.”

This is not the first major appointment of an expert in the digital asset, blockchain space by SAMA, prior to this they had appointed Mr. Mohsen AlZahrani, Virtual Assets (VA) and CBDC program Lead, who was recently discussing KSA’s wholesale CBDC project at R3 Corda Day in UAE.

Majid Al Futtaim launches UAE made Fresh Laban traceable with Blockchain

Majid Al Futtaim launches UAE made Fresh Laban traceable with Blockchain

Majid Al Futtaim, which holds the Carrefour franchise for the Middle East, Asia and Africa, has announced the launch of UAE produced CarreFour fresh Laban, made from 100 percent pure fresh cow’s milk which is traceable on the IBM Blockchain platform.

As per Mohamed Atif, International Product Specialist at Majid Al Futtaim stated on LinkedIn, “Carrefour Fresh Laban comes in 200 ml, 1L and 2L sizes, and is guaranteed to have no milk powder, no water added, and made fresh in the UAE. The product is certified to the Emirates Quality Mark certification, which assures you of the highest standards of quality. We have applied blockchain technology to our product, allowing you to scan the QR code and learn the full details of the product from farm to table. We believe in transparency, and want you to know exactly where your food comes from.”

In 2020 Carrefour internationally announced the roll-out of blockchain technology, and applied it to Carrefour Quality Line salmon, the 25th product to take advantage of it after Auvergne chicken and farmhouse fattened chicken, eggs, oranges, fresh milk and camembert cheese.

Then in February 2021, UAE Majid Al Futtaim leveraged IBM Food Trust, a blockchain-enabled platform for the food industry run on IBM Cloud.

The initiative started with two initial products categories, Carrefour’s fresh chicken brand and microgreens harvested from select in-store hydroponic farms, before expanding into more product lines.

Majid Al Futtaim was also one of the first to accept crypto payments. 

Japanese Nomura Bank’s digital asset custodian Komainu receives MVP operational license from Dubai regulator

Japanese Nomura Bank’s digital asset custodian Komainu receives MVP operational license from Dubai regulator

Japanese Nomura Bank’s, Komainu, a regulated digital asset custody provider, has received an MVP (Minimum Viable Product) operational license from Dubai’s Virtual Asset Regulatory Authority (VARA). This is one step from receiving the full operational license. This also follows HexTrust another digital asset custodian who received the license prior. Under the license Komainu will be able to offer both custodial and staking services.

Komainu had received provisional regulatory approval from VARA in July 2022 allowing it to commence operational readiness even as the application goes through the warranted due diligence.

Komainu acts as key gatekeeper to institutions gaining exposure to the digital asset industry with the provision of secure and regulated digital asset custody services for blockchain and beyond. Over the years, Komainu has established itself as one of the leading digital asset custody providers for institutional clients, providing the same safeguards and protections investors are accustomed to in traditional finance. 

Komainu is the first hybrid custodian for institutional digital asset investors created by the Japanese investment bank Nomura, digital asset manager CoinShares and digital asset security company Ledger.

Universal Digital and Canadian Aquanow receive several MVP licenses from Dubai’s virtual asset regulator

Universal Digital and Canadian Aquanow receive several MVP licenses from Dubai’s virtual asset regulator

Universal Digital AEDU and Canadian Aquanow have received MVP ( Minimum Viable Product) provisional license approvals for several virtual asset licenses from Dubai’s Virtual asset regulatory authority (VARA). Universal Digital (AEDU) has applied for advisory license, broker dealer services, virtual asset custodial license, crypto exchange license, crypto lending and borrowing license, as well as management and investment service license.

In addition Canadian headquartered, digital asset platform has also received MVP provisional approval for advisory license, broker dealer license, and management investment service license.

Aquanow is a privately funded, infrastructure and liquidity provider that enables institutional and enterprise use-cases for digital assets. The company currently has 200 institutional clients, serving customers in 30 plus countries with 70 asset pairings.

This is another representation of increased interest in the UAE as a center for virtual assets, blockchain and crypto. 

UAE Blockchain authentication platform Stitchain to authenticate luxury products for THE LIST

UAE Blockchain authentication platform Stitchain to authenticate luxury products for THE LIST

UAE Blockchain authentication platform Stitchain, has been chosen by Dubai online luxury commerce platform, THE LIST, to authenticate ownership for luxury fashion sector.

Headquartered in New York, and with a presence in Dubai and Lisbon, THE LIST identified the Dubai-based ID authentication platform due to its proprietary protocols to connect physical products and assets to the digital world.

As a social commerce platform for luxury fashion, THE LIST enables immediate access for consumers to a network of leading global brands and retailers, where they can discover and shop personalized content and access “hard-to-find” items.

The partnership supports THE LIST’s mission to ensure the authenticity of every product listed on the platform. By embedding NFC (Near Field Communication) tags linked to Stitchain’s blockchain-based authentication system, customers can also use the platform to verify the provenance and ownership of their purchases, fostering trust and confidence in the platform’s offerings.

Each asset registered on the platform is allocated a unique, encrypted digital ID stored on the blockchain. This digital ID is then linked to a physical NFC tag that can be embedded or attached to the asset. As a result, users can easily authenticate and verify ownership by tapping the NFC tag on their smartphone via mobile application.

Samir Al Andari Founder of Stitchain, said, “By partnering with THE LIST we are able to showcase our cutting-edge solution for asset authentication and management that well-align with THE LIST’s commitment to quality, authenticity, security and transparency. Not only does this showcase the technology pioneered from the MENA region, but it also aims to set a new standard in the luxury goods industry.”

Andreas Skorski Founder of THE LIST, added, “At THE LIST, we are committed to giving our customers the highest level of authenticity and transparency. We are thrilled to work with Stitchain and take advantage of their ground-breaking authentication platform to boost our customers’ trust in the legitimacy and ownership of the high-end goods we offer on our platform”

UAE Trade Connect Blockchain Trade Finance platform keen to expand into KSA

UAE Trade Connect Blockchain Trade Finance platform keen to expand into KSA

UAE Trade Connect Blockchain enabled trade finance platform looks to offer its solution to Saudi banking sector. Zul Javaid, CEO of UAE Trade Connect expressed his interest in expanding the Blockchain enabled KYC Trade Connect platform to KSA.

This came as UAE Trade Connect participated at the Global Trade Review conference in Riyadh KSA in May of this year.

As per Javaid, “The Kingdom of Saudi Arabia is a robust banking market, and we are very keen to bring our unique blockchain and AI based engine into the country to help banks de risk their trade finance lending.”

Javaid met with several leading Saudi banks at the event. Also present at the event in KSA was First Abu Dhabi Bank and Emirates Bank who are members of Blockchain enable UAE Trade Connect platform.

In February 2023, UAE Trade Connect added its 11th bank to the platform, the United Arab Bank. Prior to that Abu Dhabi Islamic Bank (ADIB) became the 10th bank to join Blockchain trade finance platform.

UTC, the fintech blockchain platform of e& enterprise, is the UAE’s first commercialized solution to combat fraud in the trade finance space built on advanced technologies, namely blockchain and Artificial Intelligence (AI). UTC is a collaborative project of the banking industry and co-created with e& enterprise.

UAE Trade Connect is a cloud-native solution that detects suspicious transactions, prevents fraud and duplication, and supports a wide range of trade-related documents that is validated and inspected in real time.

At the time, Shirish Bhide, Chief Executive Officer at United Arab Bank, stated, “We wholeheartedly support UTC’s mission of driving digital transformation and reducing fraud risks. This strategic partnership aligns with UAB’s mission to accelerate growth through digitization and to build a secure and transparent trade finance ecosystem. UTC’s benefits will not only protect UAB’s customers and the wider banking system but will also boost global trade. It is a pivotal event in the digitization space, with the potential to make trade financing more accessible, affordable, and equitable.”