Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Stablecoins, Metaverse, NFTs
JPMorgan Announces First Transaction on TCN Network
Asset Tokenization | Oct 15, 2023
Image: Unsplash/Ries Bosch
JP Morgan's Onyx division Unveils its Tokenized Collateral Network (TCN) Announces First Live Client Transaction
On October 10, 2023, JPMorgan Chase announced a significant milestone for its TCN. The banking giant revealed that the network had facilitated its first collateral settlement for a live client over-the-counter (OTC) derivative transaction.
The first transaction involved BlackRock tokenizing shares in a BlackRock Money Market Fund and pledging them as collateral with Barclays for a derivatives contract.
See: Swift’s Blockchain Breakthrough Boosts Global Tokenization
Using blockchain and tokenization the settlement is instantaneous, thus overcoming the time-intensive process currently required to settle and transfer asset ownership. From BlackRock's viewpoint, such a solution would incentivize institutions to retain their money market fund (MMF) shares instead of redeeming them for the purpose of posting collateral.
As quoted on BNN Bloomberg, “The tokenization of money market fund shares as collateral in clearing and margining transactions would dramatically reduce the operational friction in meeting margin calls when segments of the market face acute margin pressures,” said Tom McGrath, Deputy Global COO of the Cash Management Group at BlackRock.
What is the Tokenized Collateral Network (TCN)?
The TCN is an application that enables investors to use their assets as collateral without the need to physically move them in underlying ledgers. This means investors can transfer collateral ownership while still remaining invested, initially focusing on money market funds.
See: Real World Implementation of Real Estate Tokenization
The TCN is not just a tool for investors.
- Portfolio Management Leaders can continue to earn returns on assets while using them as collateral for new investments.
- Credit & Collateral Risk Leaders can use financial assets as collateral, eliminating operational burdens and the risk of settlement failure.
- Product Management Leaders can leverage this enterprise-grade blockchain-based platform that integrates seamlessly with legacy infrastructure.
There are many benefits:
- Enhanced Capabilities: Assets that were previously inaccessible for use as collateral can now be seamlessly integrated.
- Transparency: The entire lifecycle of asset transfers is transparent, ensuring clarity in collateral ownership.
- Automation: The system reduces manual processing through automated reconciliation.
- Cost Efficiency: The enhanced mobility of collateral eradicates the need for market moves, subsequently reducing costs and settlement timelines.
- Real-time Transfers: Collateral ownership can be transferred in real-time.
- Integration with Onyx: The TCN can be used in conjunction with other applications within the Onyx Digital Assets ecosystem.
The Future of Tokenization
JPMorgan's commitment to tokenization is evident. Earlier in the year, the bank processed close to $700 billion in short-term loan transactions via Onyx, a permissioned version of the Ethereum blockchain. Tyrone Lobban, the Onyx program head, believes that tokenization is a game-changer for traditional finance, especially considering the vast potential in private markets.
See: Singapore Announces Project Guardian to the Value Created in Leveraging Asset Tokenization
In conclusion, the integration of blockchain technology in traditional finance is starting to pick up steam and the future of asset collateralization looks promising, efficient, and secure.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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CFA Stops Rebuildingsociety’s Binance Crypto Promotions
Regulation | Oct 11, 2023
Image: Unsplash/Markus Winkler
The Financial Conduct Authority (FCA) has halted rebuildingsociety.com, a peer-to-peer platform, from approving financial promotions for Binance and other crypto asset firms.
The FCA has been unyielding in its regulatory stance, particularly towards cryptocurrency promotions. A recent statement from the FCA reveals that 146 alerts were issued about cryptoasset promotions on the first day of the new regime alone. The regulatory body expects various businesses, including social media platforms, app stores, and search engines, to heed these alerts and play a pivotal role in shielding UK consumers from illegal promotions.
See: FCA’s Expectations for UK Cryptoasset Businesses and the Travel Rule
The FCA’s New Crypto Marketing Regime
Since October 8, 2023, firms aiming to promote cryptoassets in the UK are mandated to be authorized or registered by the FCA, or have their marketing approved by an authorized firm.
The FCA’s rules necessitate that promotions be clear, fair, and not misleading, and must be accompanied by prominent risk warnings. Furthermore, they should not improperly incentivise individuals to invest. This regulatory shift aligns cryptoassets with other high-risk investments and applies to all firms marketing cryptoassets to UK consumers, irrespective of the firm’s geographical location or the technology utilized for promotion.
Binance and Rebuildingsociety.com Partnership Under Scrutiny
Binance, despite being unregulated in the UK, announced a new domain for UK users and declared that rebuildingsociety.com would be responsible for approving its marketing and communication materials. However, the FCA’s intervention has cast a shadow over these plans.
See: SEC Accuses Binance.US of Not Cooperating With Investigation as Executives Exit
Binance has emphasized its substantial investment in ensuring compliance with the FCA's rules and highlighted that their agreement with Rebuildingsociety.com was shared with the FCA well before the enforcement of the updated Financial Promotions Regime.
Rebuildingsociety.com, on the other hand, has expressed its commitment to exceeding regulatory requirements and safeguarding consumers. Despite its waiver request for additional compliance time being rejected, the platform plans to appeal against the FCA’s restrictions and the waiver request denial.
Navigating Regulatory Waters
The FCA’s robust action and the new financial promotion rules for cryptoasset promotions are in alignment with its core commitments to reduce and prevent serious harm, set and test higher standards, and promote competition and positive change, as laid out in the 2023/24 Business Plan.
See: FCA Uses New Tools to Catch 14X more Mis-leading Ads than Last Year
The ongoing situation serves as a reminder for platforms operating in this sphere, emphasizing the necessity to remain abreast of regulatory developments and to ensure that operations are in strict compliance with the prevailing norms.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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CMCC Global Unveils $100M Titan Fund for Web3
Capital | Oct 10, 2023
CMCC Global, a prominent blockchain and Web3 investment firm in Asia, has unveiled a $100 million USD Titan Fund, a venture capital fund dedicated to fostering Web3 companies.
The fund has successfully hit its initial fundraising target, securing USD100m in its first close, with a strategic focus on investing in blockchain companies' equity. Titan Fund will channel investments into early-stage startups across three key sectors: Infrastructure, Fintech, and Consumer applications, which includes gaming, metaverse, and NFTs.
With Asia being a hotspot for blockchain deals, the Titan Fund is strategically placed to capture value in the region, anticipating a surge in mainstream adoption of blockchain technology in the coming years.
Block.one (B1) has emerged as the anchor investor, committing a substantial USD50m to the fund, alongside other notable investors like Richard Li's Pacific Century Group and Winklevoss Capital. In addition to being an anchor investor, B1 will also become a minority shareholder in CMCC Global's holding entity, aligning strategic potential for both entities.
See: Kaiko CEO Predicts Hong Kong as the Next Crypto Hub Due to US Crackdown
The fund will be managed by a new managing partner, Yen Shiau Sin, formerly of B1, and a team comprising Investment Principal Jonathan Cheung, and CMCC Global's Co-founders Charlie Morris and Martin Baumann.
The Titan Fund, administered by State Street and audited by EY, is positioned as an institutional-grade fund and is managed by Fintech Investment Group Limited, a subsidiary of CMCC Global.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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LQWD’s AI Tech Achieves 4500% Lightning Network Surge
Lightening Network | Oct 5, 2023
Image: LQWD
LQWD Technologies boosts Lightning Network channels with AI, achieving a 4500% surge in LQWD-Canada node channels and top 5 ranking.
October 5, 2023 - Vancouver, British Columbia / LQWD Technologies Corp., a prominent Bitcoin Lightning Network Service Provider integrates high-impact Artificial Intelligence (AI) technology to enhance and automate its Lightning Network channels, ensuring optimal performance and efficiency.
After a meticulous nine-month data collection period from its nodes spread across eighteen countries and amalgamating TensorFlow Framework with Nvidia’s AI technology, LQWD has managed to tap into the substantial potential of AI.
The results are staggering: LQWD-Canada node has witnessed a 4500% surge in its channels, propelling it to rank among the top nodes on the entire Lightning Network.
See: The Most Efficient Payment System In The World: Bitcoin And The Lightning Network
The data-driven models developed by LQWD offer profound insights into the swiftly adopting Lightning Network, covering aspects like channel openings, channel imbalances and rebalancing, and network fees. These critical insights pave the way for the creation of intelligent software that prioritizes efficient node management, thereby catalyzing transaction growth.
Shone Anstey, LQWD’s CEO:
With the integration of AI technology, LQWD solidifies its position as a trailblazer in the Bitcoin Lightning Network community. This advancement in operations has pushed the LQWD-Canada node to a top 5 ranking of nodes on the Lightning Network. We will continue to leverage AI-powered automation to promote transaction growth.
See: Lyn Alden Analysis: A Look at the Lightening Network
LQWD, as a Lightning Network Liquidity Provider, is dedicated to developing payment infrastructure and solutions that bolster the global mega-trend of Bitcoin adoption through the Lightning Network. The company also possesses Bitcoin, which is utilized as an operating asset to establish nodes and payment channels on the Lightning Network. Real-time tracking of LQWD’s nodes transaction volume and connection to global routing nodes is accessible on their website.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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BoC: Redefining Financial Inclusion for CBDCs
Report | Oct 4, 2023
Bank of Canada's Staff Release New Research on Implications for a Central Bank Digital Currency
- Today, the Bank of Canada's staff released their latest report, "Redefining Financial Inclusion for a Digital Age: Implications for a Central Bank Digital Currency," which delves into the intricacies of digitalization and its impact on financial and digital inclusion, particularly in the realm of payments.
- The Bank of Canada has been exploring the concept of CBDCs and considering various aspects related to its implementation, such as technology options, unmet payment needs, security, and privacy.
- As over 130 central banks around the world are actively researching, developing, or implementing their own CDBCs, and the IMF is implementing a cross-border CBDC global platform.
Report Insights
1. Digitalization and Financial Inclusion
- Canada experiencing a notable shift in consumer behavior and technology use, especially in how Canadians manage money and make payments.
- The decline in the use of cash in favor of cards and digital payments has been significant, prompting broader considerations about digital money and its social implications.
- Digitalization has permeated society, offering new opportunities but also creating and exacerbating existing inequities, especially in payments.
See: Bank of Canada Seeks Your Input on Transaction Reports
- The report applies the social model of disability to the Canadian payments landscape to identify opportunities to remove barriers that marginalize or hinder people. The authors aim to build awareness of the inequities and challenges present in the current payments system and motivate fintech providers to offer more inclusive products and services.
2. Challenges in the Current System
- The authors identify barriers faced by rural populations, Indigenous communities, Canadians with low incomes, and persons with disabilities in using financial products.
- There is a noted deficiency in the current research and payment offerings for those with cognitive accessibility challenges.
- Financial inclusion is often measured by access to bank accounts, with 98% of Canadian adults having a bank account and a debit card.
- However, the remaining 2% who are unbanked, and the 13% without a credit card, may face limited options for online purchases and are at a higher risk of being excluded from the digital economy.
See: McKinsey Global Payments On Cusp of ‘Decoupled Era’
- The decline of cash as a payment method, from approximately 53% in 2009 to below 21% in 2021, also poses challenges for those who rely on banknotes.
3. Trust and Literacy in Financial Inclusion
- Trust and literacy emerge as recurring themes across financial inclusion research. Some people with low incomes have shown a preference for paper bills as assurance when transacting with banks and billing firms.
- Discrimination experiences, especially in financial institutions and banks, have been reported by Black and Indigenous respondents, which may influence their engagement with traditional financial services.
What Can Canada Learn About CBDCs in Other Jurisdictions?
GDPR and Data Privacy
- The General Data Protection Regulation (GDPR) has been implemented by the European Union and is considered a gold standard in regulating how companies use and secure consumer data.
- GDPR-like data privacy laws have been adopted by many countries around the world since 2018, affecting international enterprises with customers or employees in Europe as well as those serving as data processors in Europe or for European companies.
- The implementation of GDPR has faced challenges such as insufficient funds, complex procedural labyrinths, and infighting on implementation among national enforcers.
See: Can Privacy and Financial Regulation Co-exist?
- The GDPR has led to many companies considering reducing their presence in Europe significantly, or even halt services in entire jurisdictions.
Best Practices in CBDCs and Privacy
- Ensuring that users have control over their data and are aware of how it is being used is crucial. This involves clear communication about data usage policies and providing options for data control to the users.
- Some CBDC models propose different levels of anonymity, such as "loose" anonymity, where the transaction data is visible to the central bank or "tight" anonymity, where the data is not visible to the bank.
- Implementing data minimization practices that limit the collection of user data to what is strictly necessary for the transaction or service.
- Employing robust security measures to protect user data from unauthorized access and breaches.
- Establishing a clear legal framework that outlines the rights of the users and the obligations of the CBDC providers.
Country Model Examples
- China's Digital Currency Electronic Payment (DCEP) model has been in pilot testing in various cities. The model is designed to replace cash in circulation and is not fully anonymous. The People’s Bank of China will be able to trace the DCEP to fight against money laundering, terrorist financing, and tax evasion. See also: Offline payments via super SIM cards
- Sweden's e-Krona model by Sweden's central bank, Riksbank, is exploring to have an electronic currency that could ensure that the general public will retain access to a state-guaranteed means of payment in the future.
- Bahamas' Sand Dollar is a digital version of the Bahamian dollar, launched by the Central Bank of The Bahamas. It provides for digital identity and maintains transaction privacy but is also compliant with AML/CFT regulations.
The Consumer's Voice is Critical
The insights derived from the report could serve as a foundational framework for policymakers, financial technology providers, and central banks in designing and implementing digital payment products and services that are not only technologically advanced but also universally accessible and equitable. Beyond fintech innovators, traditional financial institutions, and policy-makers, the general public and consumer must be consulted and brought to the forefront of the discussion.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Kraken’s Strategy for Canadian Market Growth
Crypto | Oct 4, 2023
Image courtesy of Kraken blog
Kraken bolsters its Canadian offering
In a recent blog post titled "Kraken bolsters its Canadian offering" Kraken discusses several key updates regarding their services in Canada.
About Kraken
- Kraken, founded in 2011 by Jesse Powell, is based in San Francisco, California, USA. The platform was developed in response to the catastrophic failure of the Mt. Gox exchange and was designed with the aim of providing a secure and advanced option for cryptocurrency traders. Since its inception, Kraken has grown to become one of the largest and most respected cryptocurrency exchanges in the world.
- In March 2023, Kraken filed their pre-registration undertaking (PRU) with the OSC allowing them to operate while their application is reviewed. The OSC hosts a registration and pre-registration page on their website confirming that Kraken (Payward Canada Inc.) had filed their PRU.
- Kraken emphasizes its commitment to adhering to local regulations while providing Canadians with optimal crypto access.
Canadian Updates
1. Expanded Interac e-Transfer Funding
- Kraken has introduced Interac e-Transfer as a funding option for all Canadian clients, available across its Mobile and Web platforms.
- Interac e-Transfer, which is utilized by 90% of Canadians to send CAD electronically, facilitates over a billion transactions annually.
- To celebrate the new feature, Kraken has lowered its Interac e-Transfer fee to 0.95%.
See: Bitbuy and Localcoin Partner Boosting Crypto Access in Canada
2. New Coin Listings
- Kraken is set to list eight new crypto assets for trading in Canada, which include Astar (ASTR), Audius (AUDIO), Centrifuge (CFG), Moonbeam (GLMR), GensoKishi Metaverse (MV), Perpetual Protocol (PERP), Sui (SUI), and Woo Network (WOO).
- More assets are expected to be added over time.
3. Board Appointment
- Dina Mainville, a cryptocurrency regulatory compliance specialist and founder of Collisionless, has been appointed to the Payward Canada board of directors.
- Dina has extensive knowledge in money laundering controls for blockchain assets and has advised numerous Global Fortune 500 companies on blockchain initiatives. She has also trained numerous government and law enforcement professionals on cryptocurrency forensic investigation strategies.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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SBF Sues Insurer As Trial Commences Amidst Media Frenzy
Crypto | Oct 4, 2023
The high-profile trial of Sam Bankman-Fried (SBF), the founder of FTX, has commenced, drawing significant attention from the media, crypto influencers, and the general public.
Here are some key takeaways from the first day of the trial:
Trial and Witness Selection
- The courthouse was bustling with activity, and the media overflow room was filled with individuals noting every detail of the event.
- SBF faces serious charges, and the trial is expected to span approximately six weeks, although it might conclude sooner.
- The charges and potential witnesses suggest a complex and multifaceted trial that will delve deep into SBF’s business practices and the operations of FTX and Alameda.
- A list of potential witnesses was read out, including notable names like Anthony Scaramucci and several former company executives and family members.
- Institutions like Jane Street Capital, Sequoia Capital, and Binance might be mentioned during the trial, indicating the breadth of entities involved or affected by the case.
See: Sam Bankman-Fried Accused of Witness Tampering Now Awaits Trail Behind Bars – Lessons Learned
Jury Selection
- The public and potential jurors expressed a range of views on crypto, from skepticism to personal grievances due to investment losses.
- The jury selection process was meticulous and detailed, with Judge Lewis B. Kaplan ensuring potential jurors would not be influenced by external media coverage.
- Some potential jurors shared their experiences and losses in crypto investments, while others expressed skepticism and negative feelings towards the crypto industry. The final jury selection is yet to be completed but is expected to conclude soon.
Reaction and Next Steps
- Some observers noted SBF’s calm and composed demeanor, while others, including crypto influencer Tiffany Fong, commented on his altered appearance, suggesting it made him look “more criminal.”
- The trial is set to continue with the finalization of the jury selection, followed by opening statements and witness testimonies, which are all expected to unfold in the coming days and weeks.
- For those interested in every detail, Wired is hosting a LIVE FTX trial feed here
SBF Sues His Insurer to Cover Legal Bills
- Sam Bankman-Fried (SBF), amidst an undergoing a trial, has filed a lawsuit against his insurance provider, CNA, accusing them of not covering his legal costs as per their policy.
See: Ether Futures ETFs Launch. VanEck Commits 10% to Developers
This trial is not only pivotal for SBF but also holds significance for the cryptocurrency industry, as it brings to light regulatory, ethical, and operational issues within the space. The outcome may potentially influence regulatory frameworks and public perception of the crypto industry in the future.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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