News
Blockchain Weekly Blog – July 2024 #4 | BakerHostetler
Ether ETFs Begin Public Trading, Generating $1.07 Billion in Cumulative Volume
According to reports, on July 23, nine different spot ether (ETH) exchange-traded funds (ETFs) from eight different issuers began public trading on three major U.S. exchanges. On the first day of trading, the ETH ETFs reportedly generated approximately $1.07 billion in cumulative trading volume. Reports noted that as currently designed, ETH ETFs cannot hold staked ETH.
In related news, a large U.S. investment management firm has reportedly recently made a private credit fund available on the Solana blockchain network through a partnership with Libre, a Web3 infrastructure company. The offering will allow accredited, professional, and institutional investors direct access to the private credit fund and ancillary services for secondary trading and secured lending.
In one last noteworthy development, a major Italian bank, Cassa Depositi e Prestiti Spa (CDP), has successfully completed its first digital bond issuance on the Polygon blockchain network, according to a recent press release. The issuance reportedly took place as part of an initiative with the European Central Bank.
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Cryptocurrency Offerings Announced by Major Accounting Firm, Crypto Custodian
A “Big Four” accounting firm is partnering with crypto accounting software platform Cryptio to help companies establish controls for accounting for cryptocurrencies, according to a recent press release. The release notes that obtaining accurate and complete on-chain data for financial reporting purposes is critical to meeting financial reporting standards. According to the release, Cryptio’s technology enables companies to maintain complete and auditable data, while the Big Four accounting firm brings significant industry knowledge to help companies navigate financial landscapes, improve internal controls, and meet reporting standards.
In another recent report, digital asset custodian Hex Trust announced that it has received in-principle approval for a Major Payment Institution license from the Monetary Authority of Singapore (MAS). Such licenses allow firms operating in Singapore to conduct multiple payment services and manage digital payment tokens, and are said to be a “gold standard” for crypto licensing in Asia. Hex Trust’s CEO and co-founder said that getting to this stage of the process has been a multi-year effort that began in 2020, according to the report.
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FATF publishes fifth targeted update on VA and VASP implementation
From Christopher Lamb
The Financial Action Task Force (FATF), a global watchdog against money laundering and terrorist financing, recently released its fifth focused update on the implementation of the FATF standards on virtual assets and virtual asset service providers. According to a press release, the report finds that global implementation of AML/CFT regulations covering virtual assets (VA) is lagging in some jurisdictions, with some governments yet to take steps to regulate the VA sector. The report finds that 75% of jurisdictions are partially or non-compliant with FATF VA and VASP (VA) requirements, a number identical to the April 2023 findings. According to the press release, “The slow progress in regulating the VA sector is a serious concern as VAs continue to be used to support the proliferation of weapons of mass destruction, including by the DPRK, as well as by fraudsters, terrorist groups and other illicit actors.”
Additionally, the report notes that approximately one-third of jurisdictions responding to the survey have not passed VA legislation implementing the Travel Rule, an important AML/CFT measure. The report also points to an increase in the adoption of stablecoins and DeFi arrangements and identifies the need to facilitate the sharing of best practices in implementing FATF standards on VA and VASP.
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