New Securities and digital assets law proposed by UAE’s DIFC in consultation paper

New Securities and digital assets law proposed by UAE’s DIFC in consultation paper

The UAE’s Dubai International Financial Centre (DIFC), which is autonomously regulated, has proposed a new securities digital asset law in a new consultation paper.

The new Law of Security and related amendments to select existing legislation will cater to the requirements of the DIFC’s proposed digital assets regime to other DIFC laws. The proposed legislative enactments, and amendments to existing legislation, aim to ensure DIFC Laws keep pace with the rapid developments in international trade and financial markets arising from technological developments, and to provide legal certainty for investors in, and users of, digital Assets.

Jacques Visser, Chief Legal Officer at DIFC, commented: “DIFC is excited to announce a proposed new Digital Assets Law and new Law of Security regime. DIFC has been working closely with experts in the field of digital assets and banking and finance to create a groundbreaking Digital Assets Law, and in doing so proposes a significantly enhanced and updated Law of Security regime. The proposed Digital Assets Law sets out the legal characteristics of a digital asset, its proprietary nature, how it may be controlled, transferred, and dealt with by interested parties. The proposed new Law of Security is modeled on the UNCITRAL Model on Secured Transactions and has been adapted to take account of specific factors relating to DIFC. We believe these proposals will put DIFC’s legal and regulatory framework at the forefront of international best practice.”

The UNCITRAL Model Law on Secured Transactions (the “Model Law”) deals with security interests in all types of tangible and intangible movable property, such as goods, receivables, bank accounts, negotiable instruments, negotiable documents, non-intermediated securities and intellectual property with few exceptions, such as intermediated securities.

In the press release DIFC states, that digital Assets, such as cryptocurrencies, NFTs, stablecoins and security tokens, represent a trillion-dollar asset class and the scope for future innovation and market opportunities within it are considerable. Thus far the primary focus in many jurisdictions has been to regulate and impose enforcement related sanctions on some of the practical applications of this asset class from a regulated financial services perspective.

However, the fundamental benefits brought about by blockchain technology, the digital assets that can be created thereby, and their application across a wide spectrum of use cases will grow and become of increasing importance in a much wider context.

In this regard, the broader legal questions as to the exact nature of the legal features and impact of digital assets remains open for debate on several key issues. International legal developments and judgments across the common law world have begun to provide some clarity in this regard but has, to date, not yet provided a comprehensive legal framework mapping out the full extent of the legal characteristics of a digital asset and how users and investors within this asset class may interact with digital assets and each other.

Following extensive review of the legal approaches taken to digital assets in multiple jurisdictions, DIFC is now publishing for public consultation its own Digital Assets Law proposal to provide such a comprehensive framework in DIFC. In addition, the legislative proposal also proposes changes to other cornerstone DIFC laws, including the Contract Law, the Insolvency Law, the Law of Obligations, the Trust Law, and the Foundations Law to cater to the requirements of digital assets in the larger legal framework of the DIFC.

Similarly, a great deal of innovation has taken place in secured transactions regimes internationally – particularly since the current Law of Security was enacted in 2005. This includes the emergence of businesses and platforms that enable the extension of credit in, and secured or covered by, digital asset collateral arrangements, and an increasing drive to digitize international trade.

Following consideration of regimes in other jurisdictions and particularly UNCITRAL’s Model Law on Secured Transaction, in conjunction with the proposed new Digital Assets Law, DIFC proposes to repeal the current Law of Security, and to significantly amend and enhance DIFC’s securities regime. This will align the regime with international best practice and provide clarity in relation to taking security over digital assets. In doing so, the DIFC also proposes to repeal the current Financial Collateral Regulations and amalgamate the financial collateral provisions into a new chapter of the proposed new Law of Security.

The proposed legislative changes contained in Consultation Papers No. 4 and No. 5 of 2023 have been posted for an extended 40-day public consultation period with the deadline for providing comments ending on 5 November 2023. The Consultation Papers are available on the DIFC Legal Database.

The proposed amendments reflect the Centre’s commitment to maintaining a transparent and robust legal and regulatory framework aligned with global best practice.

Dubai regulated TOKO tokenization exchange partners with Virtuzone to offer blockchain enabled VC funding

Dubai regulated TOKO tokenization exchange partners with Virtuzone to offer blockchain enabled VC funding

Dubai regulated virtual asset broker and exchange TOKO FZE a creation of international law firm DLA Piper, has partnered with  Virtuzone, a pioneer in business solutions and corporate services for the region. The partnership will include the establishment of a tokenized equity crowd funding platform will further cement Dubai’s standing at the forefront of financial innovative and as a destination for early stage and fast growth companies seeking a supportive business environment.

TOKO has just received a fully operational license from Dubai’s Virtual Asset Regulatory Authority (VARA).The partnership with Virtuzone is set to transform early-stage private equity fund raising using blockchain technology to bring enhanced transparency, accessibility, and opportunity for both investors and the businesses seeking to raise funds. Across a variety of compelling businesses, investors will have greater insight, information and access to private equities for their portfolio and the expectation of greater liquidity that comes with this digital transformation.Scott Thiel, Managing Director of TOKO, says “The VARA regulatory framework has been custom designed for virtual asset transactions, providing a robust and clear route to market that is going to support the transformation of investments and facilitate financial inclusion.  We are excited to be partnering with Virtuzone in tokenising early-stage equity investments. At TOKO, we believe in improving the world and reshaping the virtual asset management landscape through cutting-edge technology, regulatory compliance, and a user-centric approach, and this partnership with Virtuzone provides a wonderful platform to achieve this”.By tokenising early equity offerings, TOKO and Virtuzone will open up access to a broader range of investors, allowing both institutional and individual investors to participate in a more accessible and transparent manner.The partnership is poised to take full advantage of VARA’s regulatory framework to drive positive change in the financial services sector. It will create a revolutionary platform for SME-sized companies, enabling them to engage in early equity fundraising with ease.Neil Petch, Chairman and Co-founder of Virtuzone, says: “Since our founding 14 years ago, our mission remains the same – to ease the way for entrepreneurs, start-ups and SMEs and equip them with all the tools they need to succeed. We are therefore thrilled to partner with TOKO, under the VARA regulatory framework, and introduce tokenised equity offerings, which we believe will make Dubai an even more attractive destination for startups and entrepreneurs seeking funding, as well as for angel investors and venture capitalists looking to be part of Dubai’s thriving business sector. Our strategic collaboration with TOKO also aligns with the UAE’s National Entrepreneurship Agenda, which aims to establish the UAE as home to 10 unicorn companies by 2031.”This partnership between TOKO and Virtuzone represents a transformative step forward in the evolution of Dubai’s innovative financial landscape. By introducing tokenised early equity fund offerings, the collaboration will not only empower businesses but also create exciting opportunities for investors.

UAE based Aurus selected among top 25 companies for DMCC TDeFi accelerator program

UAE based Aurus selected among top 25 companies for DMCC TDeFi accelerator program

Out of over 100 plus applications, UAE based Aurus, which tokenizes precious metals including gold, silver and platinum using blockchain technology, has been selected as one of the 25 companies that will be joining Dubai’s DMCC ( Dubai Multi Commodities Centre) and TDeFi accelerator program.

The accelerator program is aimed towards Web3 and Blockchain companies based out of Dubai offering mentorship, support, and business scaling opportunities.  The acceleration program kicks off on September 5th, 2023, with a range of mentor sessions covering legal and compliance, web3 marketing, fundraising, and token economics. Participants are able to gain practical experience by using their own projects as case studies during workshops on token economics and token markets management. The program culminates in a Demo and Pitch Day, with 20+ venture capitalists and investors serving as judges, representing over $IBn in cumulative AUM.

The program’s conclusion is more than just a pitching session. It’s a doorway to connect with an expansive network of Funds, VCs, and Partners. It’s the day where projects can truly shine and kickstart their fundraising sprint.

Aurus was selected as one of the 25 companies because of its unique selling points that includes solutions to make it easy to buy, trade, and store precious metals (gold, silver and platinum), grams at a time, 24/7, at minimal fees, at the convenience of your mobile phone.

In addition, Aurus is at the forefront of tokenization of real-world assets, pioneering use cases for precious metals that were previously unfathomable. Bridging the gap, and addressing various use cases in several new untapped markets such as Payments, DeFi, gaming, NFTs, and Web3.

Aurus adheres the strictest standards and is one of few projects truly compliant within the current regulatory framework. Operations are conducted by the Aurus Foundation in the UK where we received the regulatory nod in 2020, and Aurus Markets DMCC in the UAE, which is licenced by the DMCC.

Aurus is also gearing towards the launch of several products, such as the first NFT collection backed by precious metals which will be launched on February 2024. Aurus is also entering the DeFi world with gold. Precious metals as a financial primitive (collateral) in DeFi protocols. That is, PMs as a productive yield-bearing asset with the ability to earn a yield by providing liquidity in DeFi.

Aurus is also utilizing gold in gaming with the ability to create sustainable real-asset-backed in-game economies by bringing precious metal-backed tokens and NFTs to online games, as well as gold as a payment: a network of stable value transfer in the global payments market. The Aurus Vault Card V2 is soon to launch, enabling users to spend precious metals via the Mastercard network.

NFTs gaining traction in Middle East with Chalhoub Group, MasterCard, and Healthvarsity

NFTs gaining traction in Middle East with Chalhoub Group, MasterCard, and Healthvarsity

UAE based Chalhoub Group’s SOL3MATES future sneakers NFTs pre sale will be launched today on  May 4th while MasterCard has launched its Music Pass NFT Web3 training program for emerging musical artists and Music fans in the MENA region and Healthvarsity has launched the biggest GCC online learning platform for health professionals, using AI and NFT certificates built on blockchain technology.

Rijal Hikmatullah Co -Founder of SOL3MATES part of Chalhoub Group announced on LinkediN, “In just 3 days, SOL3MATES by Chalhoub Group is releasing a one-of-a-kind NFT that will be a game changer for the Industry. The NFTs are not just a digital asset, but an access pass to enter the SOL3MATES ecosystem that empowers sneaker designers, a community-centric platform and exclusive perks. Yes… we are releasing a physical sneaker with perks.”

The perks include access to SOL3MATES sneakers, free shipping, lifetime discounts, etc, in addition to partner perks which allow access to token gated benefits and membership perks with access to giveaways, and next SOL3MATES sneaker drop.

There will be only 10,000 NFTs for its first collection priced at 0.03 ETH which can also be purchased at luxury NFT marketplace Exclusible.

“We are a sneaker brand first, and an NFT project second,” stated Nick Vinckier, Head of Corporate Innovation at Chalhoub Group and Founder of SOL3MATES. “Our aim is to create the sneaker brand of the future born from web3 technology and mechanics such as gamification, community and decentralization. The entire customer journey is created in such a way where we merge the best of the virtual and physical experience. With the launch of our first collection, and all future collections, our focus is on adding value to our community over time.”

Each SOL3MATES sneaker will be equipped with an NFC tag linking the physical shoe with blockchain-enabled authentication to track the sneaker ownership and providing more product information to the end user. And the SOL3MATES community will get access to rare sneaker giveaways, hype sneakers at retail, free SOL3MATES merchandise, meetups and more.

Additionally Mastercard Music Pass NFT is now available for music fans from Eastern Europe, Middle East and Africa and around the world. These fans can participate with the limited release Mastercard Music Pass NFT being minted on Polygon

Music Pass NFT unlocks access to exclusive content and experiences from the Mastercard Artist Accelerator. The unique program will prepare five emerging musical artists from around the world with the tools and skills to harness Web3 technologies to reimagine their creative processes and grow their careers in the digital economy. Artists will learn how to use Web3 tools to create original tracks, which will be redeemable as NFTs as well as performed live by the artists in a special showcase.

Nigerian R&B/Afrobeats record producer and songwriter LeriQ join four other musicians from around the world for the Mastercard Artist Accelerator: Cocoa Sarai, a hip-hop artist from Brooklyn; Vietnamese American-singer Emily Vu; Manu Manzo, a Latin pop artist from Venezuela; and Young Athena, a London-based R&B soul singer and BRIT School alumna. The participating artists represent a range of genres and backgrounds and were chosen because of their unique story, sound and inclusion-focused mindset.

“One of the incredible things about Web3 technologies, and NFTs in particular, are the way in which they offer creators more flexibility and ownership of their content, while generating exciting new ways for fans to engage with their art,” said Beatrice Cornacchia, Senior Vice President, Marketing and Communications, EEMEA. “The Mastercard Artist Accelerator program and Mastercard Music Pass give us an opportunity to harness NFTs for both of these exciting purposes, while helping to support some of the most vibrant, diverse young artists in the world today.”

The Mastercard Music Pass NFT is being minted on the Polygon blockchain and is free to redeem until 8 May.

Healthvarsity edtech venture launched the biggest GCC online learning platform for health professionals, using AI and NFT certificates built on blockchain technology. It will offer more than 200 courses for up skilling doctors nurses, pharmacists, physiotherapists and aspiring medical students, among others.  On completion of each course, they receive a certificate on blockchain to maintain security and authenticity.

Going forward, the platform will also introduce features such as an AI-based Virtual Instructor, AI-based Virtual Mentor and AI-based Virtual Assessor.

UAE Web3 social networking and content monetization platform receives investment from UAE Cypher Capital

UAE Web3 social networking and content monetization platform receives investment from UAE Cypher Capital

UAE-based social networking and content monetization platform Lyvely,  that provides an integrated multimedia e-commerce and payments solution, has successfully raised an undisclosed amount from UAE based Cypher Capital, an early strategy venture firm.

Lyvely soft launched early this month (August) and is already experiencing rapid growth and user adoption.  Led by experienced cofounders, Farah Zafar and Dave Catudal, Lyvely aims to compete with Big Tech global giants and revolutionize the current social networking and social e-commerce landscape. 

“We are the world’s first social networking profile that pays,” says Zafar, who is Lyvely’s Co-Founder and CEO. Every time you post content on Big Tech platforms, they make money. When was the last time you got a cheque or received a payment from Instagram? It just doesn’t work that way in Big Tech because it’s a biased and broken system. Lyvely’s doing it differently. We’re the Platform for the People. Our commitment to our users is to reward them fairly for their contribution to the Lyvely ecosystem. Our mission is to empower people to thrive in this new digital age.”

With the recent funding round led by Cypher Capital, Lyvely has a strategic advantage in the Web3 space. With Cypher Capital’s support, Lyvely will be developing a Cryptocurrency Token that seamlessly integrates into the platform, enhancing the user experience and earning potential on Lyvely.

“We’re designed as a familiar and intuitive Web2 platform, but we’re actually the bridge to a Web3 future for hundreds of millions of people” says Dave Catudal, Lyvely Co-Founder and CXO. “We’re here to create the #1 platform for anyone to monetize their content or services online. With our Token having extensive utility within our platform, we introduce the use of cryptocurrency to the masses, with zero barrier to entry.”

Joining the ranks of Lyvely’s advisory board are Bijan Alizadeh, the Co-Founder of Phoenix Group and Co-Founder of Cypher Capital, and Bill Qian, Chairman of Cypher Capital.

Bijan Alizadeh said “Lyvely is a company that excites us because of the quality of the founders, and the vision they have for becoming the bridge to Web3 for the masses. With Lyvely’s platform, they have seamlessly integrated a tokenized ecosystem using a Web2 user experience and have created a fully integrated platform that revolutionizes the way people make money online. We believe in its future and potential.”

Qatar Financial Centre Authority to launch digital assets lab soon with support of PwC

Qatar Financial Centre Authority to launch digital assets lab soon with support of PwC

In a recent LinkedIn post, Henk Jan Hoogendoorn , Chief Financial Sector Officer at Qatar Financial Centre (QFC) Authority revealed that the digital assets framework that the authority has been working on will soon be launched along with the digital asset lab.

As noted, QFC is working with Price Waterhouse Cooper ( PWC) to finalize the digital assets framework and the launch of the digital assets lab.

As Hoogendoorn noted, “ We are working on digitalassets framework together with Qatar Financial Centre Regulatory Authority (QFCRA) supported by the expertise of PwC .We are making good progress on preparation of Digital Asset Lab to be launched soon.”

Prior to this Qatar Financial Authority had taken several inititiatves towards advancing DLT, Blockchain and digital assets within the financial sector.

In May speaking to LaraontheBlock, Hoogendoorn stated, “We are developing our digital assets framework to allow for public tokenization of assets, including securities, bonds, and real-estate.” He emphasized that they will not go into crypto, NFTs (Non Fungible Tokens) or commodities at this time.

In addition Qatar Financial Centre Authority and Blockchain solution provider R3 signed an MOU to develop and grow Qatar’s fintech industry using technologies such as DLT (Distributed Ledger Technology), as well as an MOU with Blockchain entity Settlemint.

In August 2022 Qatar had released a national consultation paper about the “National Blockchain Blueprint for Qatar”. The paper was collaboratively developed by CRA, Hamad Bin Khalifa University, and Qatar University. The final version was released in March 2023.

Again it seems countries across the GCC and MENA region are embracing blockchain, digital assets, and to some degree virtual assets, the future is looking crypto bright.

Saudi Arabia moving forward with blockchain and Web3 through new royal partnerships

Saudi Arabia moving forward with blockchain and Web3 through new royal partnerships

Saudi Arabia is moving forward with Blockchain and Web3 with partnerships such as the one between Indian Beyond Imagination technologies, a blockchain Web3 tech company and Saudi Aba’ad Alkhayal software company Co-founded by Princess Hesah Al Saud.

With this partnership Beyond Imagination technologies will expand into the Middle East.

Aba’ad Alkhayal is a Saudi-based software company that leverages the latest technologies like blockchain and artificial intelligence to help businesses thrive in the digital age.

The partnership aims  to ideate, develop, and deploy solutions that will help Middle East clients with blockchain. The move comes as part of the company’s commitment to fostering blockchain adoption and innovation across various industries in the region.

“We are thrilled to embark on this exciting journey, committed to reshaping the future of technology,” said Princess Hesah Al Saud, Co-Founder, Aba’ad Alkhayal. “With this partnership, we envision a future where we harness the power of blockchain to unlock the full potential of our economy. This new beginning will pave the way for digital transformation, creating countless employment opportunities for our citizens and empowering our students with the knowledge and skills needed to embrace this digital revolution. Thus, we aim to drive positive social impact and create a better tomorrow in Saudi Arabia through technology.”

Beyond Imagination Technologies will provide its flagship solution BitMemoir to Aba’ad Alkhayal, which will help clients with digital certifications. Users can convert personal identifiers, property documents, and other sensitive materials into digital certificates, or NFTs, and store them in their own wallets. By utilizing blockchain technology, BitMemoir enables users to own their personal documents in perpetuity.

“We are excited to bring our cutting-edge blockchain solution to the Middle East, “said Mr. Nikhil Goyal, Co-Founder – Technology, Aba’ad Alkhayal. “Our expansion into this dynamic region marks a significant milestone in our journey to revolutionize industries and empower businesses with the potential of blockchain technology. We firmly believe that blockchain has the power to reshape the future, and we are committed to being at the forefront of this transformation.”

He further added, “By 2030, Saudi Arabia aims to unleash the full potential of its citizens and resources, embracing digital transformation to forge a brighter, interconnected future for all. This ambitious path includes the transformation of the Kingdom into a fully digitized society, a beacon of technological advancement and innovation. Thus, being the frontrunners in the blockchain space, we want to contribute to this aim of the nation to our full potential.”

As part of its expansion strategy, Beyond Imagination Technologies plans to establish more regional offices and collaborate with local partners to enhance its reach and support customers more effectively. By engaging with the vibrant Middle Eastern community, Beyond Imagination Technologies seeks to foster knowledge sharing, workshops, and events to promote blockchain education and awareness.

Dubai’s WOW Blockchain Summit launches $1 million startup competition at its UAE October 2023 event

Dubai’s WOW Blockchain Summit launches $1 million startup competition at its UAE October 2023 event

WOW Summit has announced the launched of its WEB3 Summit Dubai, widely hailed as the WOW SUMMIT Dubai to be held on October 8th and 9th 2023. 

Following its successful events in Lisbon and Hong Kong, WOW Summit Dubai 2023 emerges to unite distinguished industry titans, esteemed government officials, visionary funds, enterprising venture capitalists, boundary-pushing NFT and digital artists, trailblazing entrepreneurs, and influential multinational corporations.  The event will unfold at the  Atlantis the Royal, The Palm—a sanctuary of innovation where dreams transform into reality.

The Summit aims to drive the innovative trajectory of Web3, covering cutting-edge trends and innovations in technology. Through carefully selected programs, attendees will explore topics including the Web2 – Web3 transition, CBDC, regulations, asset tokenization, and the social impact and applications of blockchain and DLT technologies for real-life applications. 

Blockchain visionaries and digital assets leaders, alongside respectful UAE government officials will grace the conference stage, including Eowyn Chen, CEO, Trust Wallet; Joy John, Director, Cloud Native and Innovation, EMEA, Oracle; Talal Tabbaa, CEO CoinMena; Prof. Hoda Alkhzaimi, Director for EMARATSEC & Co-chair of the WEF Global Future Council; Ben Caselin, MaskEx SVP & CSO; Scott Tiel, TOKO Founder & CEO of TOKO by DLA Piper; Sam Katiela, Founder & CEO of Mamemo and Chairman of Crypto Valley Partners.

The summit will cover a wide range of topics and activities, providing valuable insights into the main NFT use cases, the latest updates on DEFi, DAOs, and dApps, digital asset management companies, global digital assists regulations, and more. Additionally, startup competitions will be held, offering valuable prizes to the winners and a chance to win up to USD 1,000,000 with the MMPro Expert program.

Ivan V. Ivanov, global CEO of WOW Summit, said: “Our mission is to organize an exclusive event unlike any other in the landscape of blockchain, web3, and crypto events. Our vision is to create an unparalleled experience, setting us apart from others in the region. We are fully committed to delivering top-notch content, showcasing world-renowned speakers, and forging strategic partnerships that define the cutting edge. To ensure the utmost value for our attendees, we meticulously verify all participants, guaranteeing the finest networking opportunities and the best event experience possible.”

 Join us now as we redefine the boundaries of what is possible and chart a course towards unprecedented success.

Ripple report finds 87 percent of MENA financial decision makers confident in crypto industry

Ripple report finds 87 percent of MENA financial decision makers confident in crypto industry

In Ripple’s latest report entitled “ 2023 New Value report, Crypto Trends in Business and Beyond” which covered topics such as cryptocurrencies, tokenization, DeFi, and crypto custody, financial decision makers from MENA ( Middle East and North Africa) are more bullish than their counterparts in other regions when it comes to cryptocurrencies, digital assets, and Blockchain.

As per the report findings, 72% of finance leaders surveyed expressed increased confidence in the crypto industry over the last 6 months, the number is even higher for those in the MENA region, reaching 87%.

90% of global finance leaders anticipate big impacts on business from blockchain and digital assets in the next three years. In terms of tokenization,they see the most massive impact in public stock trading and private share trading. This was especially expressed by finance decision makers with cryptocurrency experience in MENA.

In addition, global finance decision makers predict CBDCs and stablecoins will have a massive impact across business, finance  and society. This sentiment is particularly strong among  those with cryptocurrency experience, and those based in the LATAM and MENA regions.

When the Ripple report compared these results to last year’s survey, they saw that no only do  more respondents expect significant or massive impact of digital currency on business, finance and society,but they expect this to happen within a shorter period of time.

In other words, impact from these digital currency technologies is and will continue to accelerate at a faster clip. Specifically, respondents appear particularly bullish on the overall impact of digital currencies on payments. Nearly half (46%) of all respondents think stablecoins will have the largest impact on cross-border payments, and anticipate the largest impact of CBDCs to be on consumer-to-business payments (39% of financial institutions) and cross-border payments (41% of enterprises).

Many are either somewhat or very likely to begin using cryptocurrencies, CBDCs or stablecoins in their business in the next three years, and are confident that the technologies can meet their business needs. Once again, Ripple saw that respondents in  LATAM and MENA ranked slightly higher than those in other regions, and particularly those decision makers at financial institutions who work in roles related to digital transformation, blockchain/cryptocurrency, and innovation.

Overall, Latin America (LATAM) is more bullish on enterprise and institutional use of crypto for business followed by the Middle East and North Africa (MENA), then North America (NA), Asia Pacific (APAC) and Europe, Middle East and Africa (EMEA).

The report also noted that more financial institutions are interested in instituational DeFi due to pain points around borrowing, raising capital which many see that DeFi can help solve. In addition high interest rates currently outweight other borrowing related pain points by a pretty significant margin everywhere except in MENA, where credit approval requirements were ranked as the primary pain point.

According to the report, these findings are reflective of the current state of the global economy, and that’s reinforced when one compares these results to last year’s data when interest rates were lower, and thus ranked lower on the list at that time.

Another significant technology being looked into by financial decision makers is Decentralized digital identity (DID). The vast majority (90%) think DiD will have a significant or massive impact on Banking, Financial Services and Insurance in the next three years, especially finance leaders in LATAM and MENA.

Even those in treasury, capital markets, payments, and institutional banking are bullish on the technology as it pertains to Banking and Financial Services, falling within the 90% response rate and above for significant or massive impact. Surprisingly, finance leaders in those more traditional roles ranked slightly higher than those in innovation, which is somewhat counterintuitive.

When it came to crypto custody the report found that while a greater proportion of respondents at financial institutions (compared to their enterprise counterparts) currently use crypto custody in their business, in general across all respondents it was found that a total of 35% are currently using a custody solution and 54% plan to within the next three years. Additionally, most companies currently or planning to use crypto custody will do so via a managed custody approach outsourced to a third party.

The vast majority of global finance decision makers (upwards of 88%) believe that crypto and blockchain will have either a significant or massive impact on business, finance, and society over the next three years.

Over half of global respondents cited that they already have a cryptocurrency solution in place at their company, or are in the process of implementing one. Upwards of three-quarters indicate an openness to using or exploring other crypto technologies over the next few years (e.g. CBDCs, stablecoins,NFTs, etc.)

Despite the general positivity, uncertainty and barriers to adoption like privacy concerns, lack of clear regulation, risk management and price volatility are still present.

Cross-border payments and consumer-to-business payments are the top two most highly ranked use cases for both CBDCs and stablecoins.

Enterprises are particularly bullish on the use of NFTs for business in the metaverse and events/ticketing. Over 80% of global finance leaders are somewhat or very likely to use cryptocurrencies, CBDCs and/or stablecoins in their business in the next three years.

Ease of use is far and away the most important requirement for organizations to enable customers to pay with crypto. Faster payments/settlement times and cost savings are the biggest value propositions for incorporating crypto into cross-border payments for enterprises and payments/treasury professionals at financial institutions—regardless of region and level of familiarity with crypto.

Top reasons to hold a cryptocurrency are for use as a currency for making payments, and for use as a hedge against inflation.  Interest rates and cost-related concerns are key blockers for borrowing, raising capital, and making cross-border payments.

According to a survey of global institutional clients commissioned by BNY Mellon and conducted by Celent, 97% agree that tokenization will revolutionize asset management and be good for the industry. They also found that 88% of investors are comfortable utilizing a digital representation of currency like stablecoins or tokens.

The majority (72%) of finance decision makers expect to explore tokenization as a way to drive innovation over the next three years, especially those at financial institutions who currently have or are in the process of implementing a cryptocurrency solution at their organization.

In terms of assets that would benefit the most from tokenization 63% of respondents said online security of data, 50% said stocks.

GCC and MENA Family offices can make their gold work for them with blockchain tokenization

GCC and MENA Family offices can make their gold work for them with blockchain tokenization

If you are a GCC or MENA based family office that has a portfolio that includes precious metals such as gold, silver or others, or you intend to in the near future, but are hesitant because in the past you were unable to make revenues from the purchase, you now can. With the advent of blockchain, Web3 technologies and tokenization a sweet spot is upon us. 

Precious metal owners can generate earnings on their gold and make it work for them just by holding it in tokenized form. Aurus Technologies, headquartered in the UAE with offices in the UK is offering family offices the opportunity to tokenize real world assets through its sustainable tokenization as a service solution (TAAS) platform.

The GCC and MENA region has all the ingredients to make gold work for family offices. First the region itself is a hot bed for investors, secondly precious metals especially gold are well revered and invested in and third Web3 technologies including tokenization on the blockchain is revolutionizing the precious metal industry in the region.

Family offices can make their tokenized gold work for them throughout the lifetime of their ownership.

According to Mark Gesterkamp, Chief Business Development Officer, Aurus Technologies, “By minting a digital representation of vaulted bullion in the form of tGOLD, tSILVER and tPLATINUM, precious metals can now be utilized and earn transactional revenue in the digital economy.”

The company does not sell gold, but utilizes software to make gold work for its owners by allowing these tokenized real assets to be transacted and traded. Mark explains, “Part of the transaction fees flow back to the bullion owners and providers.”

  

The Growth of Investors in GCC and MENA

Recent research has shown that there are nearly 6,000 UHNW (ultra-high net worth) individuals in the Middle East with a combined net worth of US $995 billion. The number of UHNW individuals in the region is expected to increase by 24.6% in the next 5 years while the region is also expected to remain the fourth largest wealth hub in the world.

In addition the UAE is increasingly becoming a hub for family offices, with some of the world’s big names setting up offices in the country to tap the market. The same can be witnessed in KSA, Qatar, and elsewhere.

As such the region is ripe with not only a growing number of family offices but wealth that can be deployed intelligently.

Growth of interest in Digital assets

HNWI individuals and family offices are increasing their exposure to alternative assets in the form of digital assets and the MENA region is no exception. The Ocorian report found that 90% of those surveyed said their clients are looking to include crypto and digital assets in their investment strategies.

The report noted that family offices run by younger tech savvy generations want to make a move into investing in crypto and digital assets yet remain concerned about the challenges and risks.

This is more reflective in the MENA region. The Lombard Odier report found that 79% of younger Middle East investors believe there are significant opportunities in the digital and tech sectors.

Mark believes that Aurus’s blockchain tokenization offering provides tech savvy young investors with a valuable investment opportunity, easing their concerns, by offering digital assets backed by gold, silver or other precious metals. He states “Gold is understood by all, and now the new generation can put it to work sustainably and with less risk than crypto.”

 

Bullish on Gold regardless of market trends

As economic difficulties prevail globally, with worries of inflation, recession, and banking failures, precious metals are set to shine.

Tresor Gold research stated that VC firms and family offices will increase gold allocations in next 18 months. The study covered investors in in Canada, Australia, the US, UK, UAE, France, Germany, Switzerland, Qatar and Saudi Arabia.

Yet regardless of whether precious metals are seen as bullish or not, just by tokenizing gold and making it work for owners, price fluctuations are no longer relevant.  

Mark explains, “Regardless of whether gold is bullish or not, owners who have tokenized their gold will continue to make money because of the transactions. AurusX our native token for example is like a hedge for precious metals. Holders of AurusX or their own tokenized gold can earn yields in any market condition because they earn for each transaction carried out.”

Gold Investment challenges overcome with Tokenization 

Tokenizing precious metals and gold on the blockchain relieves investors from the challenges faced from utilizing traditional gold investment vehicles.  

When investing in physical gold there are always extra costs for securing, insuring and storing the gold and in return liquidating the physical gold or earning yields is also difficult.

Even with Gold index funds, or ETFs (Exchange traded funds) while investors do receive passive earnings long term, these investors do not own the gold.

Investing directly in gold via gold shares (mine shares) of gold mine operators is risky as well, as it is dependent on the performance of the mining operator and the stock exchange.

With Aurus, there is a one to one backing of the underlying bullion generating yields, making most of the challenges a thing of the past. Mark confirms, “Aurus is setting the standard in precious metals tokenization adhering to the decentralized nature of the blockchain. We work with multiple storage locations around the globe including reputable partners such as Spanish refinery Sempsa JP and vaulting facilitator Brinks.”

The Aurus Opportunity a solution for all

Since 2018 Aurus has been a strong proponent of opening the precious metals market to everyone with a smartphone using the Aurus application.

The company is leveraging metal-backed blockchain technology to help gold, silver, and platinum businesses democratize these assets via the digital economy while earning passive rewards in the digital assets & DeFi space.

By modernizing the precious metals market with Web3 technologies, it is increasing access, usability & trust, ultimately unlocking global demand.

Mark concludes, “The total size of tokenized illiquid assets, including real estate and natural resources could reach $16.1 trillion by 2030. As such we are playing our part by offering an open ended solution that allows any party to bring gold to Web3 under the standards of both the London Bullion Market Association (LBMA) and DMCC (Dubai Multi Commodities Center). ” The bigger the Aurus system grows the more precious metals will be paid out to AX holders.”

For the first time in the region, Aurus will be offering gold tokenization solutions to family offices allowing them to put their gold to work and generate yields. Mark adds, “We welcome partners in the UAE and GCC to showcase our ecosystem and work together to tokenize part of their portfolio by taking either a direct position in Aurus TGold and TSilver or tokenizing their own gold or even investing in AurusX tokens.” Aurus is currently seeking to raise $500,000 from the sale of its AurusX Tokens.

Aurus is working with greener future in mind, by reducing CO2 emission. It is collaborating with green initiatives globally. Mark states, “Blockchain allows for easier and transparent collaboration with ESG initiatives and we will continuously seek partnerships in positioning precious metals towards a greener investing alternative. We aim to ensure everyone can buy precious metals on the blockchain in a more sustainable manner.”

For more info check out the Aurus video here: https://www.youtube.com/watch?v=AtFdmbHLoPg