Cryptocurrency exchange Binance temporarily suspended its blockchain network after hackers made off with around $570 million worth of its BNB token:
Ledn to acquire Arxnovum Investments to run asset management subsidiary
Undeniable Potential of Web3
Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Web3, Decentralization, DAOs
Blockchain-Enabled Fintech Solutions and Applications: What you need to know
Guest Post | Oct 11, 2022
Image: Unsplash/Hitesh Choudhary
Blockchain-enabled fintech solutions and applications are becoming increasingly popular among financial institutions and businesses who are integrating the latest technologies to remain competitive by investing in banking software development projects internally, or by partnering with established fintechs. Humanity now prioritizes innovation as consumers and businesses alike are constantly craving for convenience, access and control over their own financial data, and a personalized fintech app experience.
What Are Blockchain-Enabled Fintech Solutions?
To start with, blockchain is a decentralized database technology storing information in the form of digital blocks. The blockchain's designation is self-explanatory because that is actually a chain of blocks that have:
- A cryptographic hash of the previous component (block);
- Timestamp;
- Transaction data.
The decentralized nature of blockchain technology boosts its resistance to any unwanted modifications of data. Here are some of the most popular uses cases of blockchain fintech solutions today:
Example 1: Cryptocurrencies
Cryptos (BTC, LTC, ETH, DOGE, and many others) are digital or virtual tokens that secure their transactions cryptographically and control the creation of new units. Bitcoin (the mentioned BTC), the first and most well-known cryptocurrency, was launched in 2009. Today, thousands of different cryptocurrencies have a total market capitalization of over $1 trillion.
Example 2: Decentralized Finance (DeFi)
Decentralized finance (mostly referred to as DeFi) is a new category of financial applications built on blockchain. DeFi applications are designed to provide financial services typically offered by centralized institutions, such as banks, without intermediaries.
Example 3: Payment Systems
Payment systems are another popular application of blockchain technology. Blockchain-based payment systems can arguably be used to process transactions faster and more securely than traditional payment systems.
Example 4: Supply Chain Finance
Supply chain finance is financing that helps businesses manage their supply chains more efficiently. Blockchain can create a decentralized network of supply chain finance providers, helping businesses get the financing they need more quickly and at lower costs.
Example 5: Insurance and Lending
Insurance is another area where blockchain is being adopted. Blockchain creates decentralized insurance platforms, which can help insurers offer new types of coverage and reduced costs.
Lending is another popular application of blockchain technology. Blockchain can be used to create decentralized lending platforms, which can help borrowers get access to financing more quickly and at lower costs.
Why Is Blockchain Important for Fintech?
Blockchain is important for fintech because it has the potential to revolutionize the financial industry. Blockchain technology lets us create new financial products and services that are more efficient, transparent, and secure than traditional financial products and services.
The 10 Benefits of Financial Blockchain
Blockchain solutions for the finance sector continue to boom (gladly, a positive one). What has it brought us that we now see evolving? Here are 10 facts about blockchain-driven fintech solutions we cannot ignore!
1. Higher Authorities Are Not Needed Anymore
Decentralization is a key feature of blockchain appreciated by many. It means there is no need for central authorities, or so-called intermediaries, to control or manage the network. Everyone can join such a network and become a part of it, avoiding the complexities bureaucracy challenges us with.
2. Improved Transparency and Privacy
In general, transparency is the ability of parties involved in the process to view the information necessary to complete a task. When we talk about financial data, it must be accurate and up-to-date. The involvement of intermediaries, in most cases, leads to slowing down the speed of transactions or even freezing them.
3. Reduced Costs
The use of blockchain for financial purposes can result in considerable cost savings. How? Let's take a look at the example of international payments. When banks are involved in cross-border processing payments, they charge high fees for their services. Blockchain can help reduce or even eliminate these fees by eliminating the need for intermediaries.
4. Increased Efficiency
The main reason blockchain is often called a "disruptive technology" is its ability to improve efficiency in various industries, including finance. One of the most significant wins of using blockchain is that it can speed up transactions significantly. For example, settlement times for securities trades can be reduced from days to minutes.
See: How Big Data and Blockchain are enhancing FinTech
5. Improved Security
Regarding storing and sharing data, security is always a top concern. With blockchain, we can minimize worries about data breaches because the technology is highly secure. Blockchain uses encryption to store data in a distributed database, which makes it virtually impossible for hackers to access it.
6. Tamper-Proof
Another important security feature of blockchain is that it is tamper-proof. Once data is stored on the blockchain, it cannot be changed or deleted. This feature is especially important in the finance industry, where the accuracy and integrity of data are critical.
7. Automated Documentation
In the traditional financial system, documentation is often a manual process that is time-consuming and prone to errors. With blockchain, documentation can be automated using smart contracts. Smart contracts are self-executing contracts that can automatically generate documents, such as invoices, when certain conditions are met.
8. Improved Traceability
Blockchain can also help improve traceability in the finance industry. For example, in the case of fraud, blockchain tracks the movement of funds and identifies the source of the problem.
9. Accelerated KYC/AML Processes
The Know Your Customer (KYC) process is a critical part of compliance for financial institutions. Blockchain can help speed up this process by automating the KYC checks and storing customer data in a secure and tamper-proof way.
10. New Revenue Opportunities
Lastly, blockchain can also help financial institutions generate new revenue streams. For example, banks can use blockchain to launch new products and services, such as cryptocurrency exchanges and digital wallets.
Final Words
The finance industry is under pressure to innovate and stay competitive. A blockchain is a powerful tool to help financial institutions achieve these goals. Adopting blockchain can improve transparency, efficiency, and security while reducing costs and generating new revenue opportunities.
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, 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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Hackers Made Off with $570 Million Worth of BNB Token
CNBC | Ryan Browne | Oct 7, 2022
Cryptocurrency exchange Binance temporarily suspended its blockchain network after hackers made off with around $570 million worth of its BNB token:
- Binance said late Thursday a cross-chain bridge linking with its BNB Chain was targeted, enabling hackers to move BNB tokens off the network.
- The company said it had worked with network validators — entities or individuals who confirm transactions on the blockchain — to pause creation of new blocks on BSC, suspending all transaction processing while a team of developers investigates the breach.
- "The issue is contained now. Your funds are safe. " BNB Chain has since resumed operations.
- Smart contract bug: The hack was caused by a bug in the bridge’s smart contract that allowed hackers to forge transactions and send money back to their crypto wallet, according to crypto security firm Immunefi.
See: Caution: Binance Chain Red Alarm System Flags 50 New Projects as Potential Scams
It is the latest in a series of major hacks targeting cross-chain bridges, with instances of sloppy engineering making them a prime target for cybercriminals. Adrian Hetman, tech lead of the triaging team at Immunefi:
As with many bridge designs, there is one central point that holds most of the funds that are moving through the bridge. Ultimately, the Bridge was tricked into giving funds from that contract.
Continue to the full article --> here
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, 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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Ledn to acquire Arxnovum Investments, a fully-registered, Canadian digital asset investment manager
Ledn | Release | Oct 6, 2022
Ledn to acquire Arxnovum Investments to run asset management subsidiary
- TORONTO, Oct. 6, 2022 /PRNewswire/ - Ledn Inc. ("Ledn"), a global financial services provider for digital assets, is pleased to announce that it has reached an agreement to acquire Arxnovum Investments Inc. ("Arxnovum"), a regulated Canadian digital asset investment manager.
- The proposed acquisition will allow Arxnovum's fully-registered business to operate as an independent business unit under Ledn, enabling Ledn to offer digital asset investment products to its accredited client base both in Canada and globally.
- The transaction is expected to close in the fourth quarter of 2022, subject to regulatory approval.
See: Ledn secures $70 million in Series B funding; Announces world’s first Bitcoin-backed mortgage product
- Arxnovum:
- Arxnovum was founded in 2021 by Shaun Cumby and operates as a digital asset investment manager offering investors active and passive strategies to gain exposure to digital assets.
- It is registered with certain securities regulatory authorities in Canada as an Investment Fund Manager ("IFM"), Portfolio Manager ("PM"), Commodity Trading Manager ("CTM") and Exempt Market Dealer ("EMD").
Adam Reeds, Co-founder and CEO of Ledn:
The recent turmoil in the industry emphasized that not all digital asset lenders are created equal and regulation is key to building trust and transparency among customers. While many of our peers suffered losses recently, Ledn continues to drive growth, emerging as a global leader in digital asset financial services, including lending and savings products. With this acquisition, Ledn will become the first digital asset lender to offer yield fund products under the exempt market dealer registration. It will also allow us to offer more investment opportunities to accredited clients in markets that recognize Canadian securities regulations, to increase their digital asset holdings.
See: Bitbuy to Offer Stock Trading to Its Users
Shawn Cumby, Founder and CEO of Arxnovum:
I am excited to build and expand access to digital asset investments with Ledn while continuing to work with my great business partner, Tanvir Sodhi. We look forward to combining our expertise with Ledn's market reach, operational capabilities and robust risk management practices.
View the original release --> here
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, 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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FT Partners Oct 2022: Blockchain & Crypto Monthly Market Update and Analysis
FT Partners | Oct 5, 2022
View the 72 page online report --> here
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, 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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AltFi Series (2 of 3): Regulatory Landscape on Stablecoins
AltFi | Stephan Roth | Oct 5, 2022
This article is the second part of a three article series on stablecoins and the future of money. The first article can be read here .
Speaking at the Opportunities & Challenges of the Tokenization of Finance event in Paris last week:
Loud and clear message
Christine Lagarde, President of the European Central Bank:
Born out of a "cultural revolution" and now accepted by the "Visas, Mastercards and Paypals" of this world, the growth of the crypto industry has shocked regulators across the globe.
See: ECB Publishes Macroprudential Bulletin on Stablecoins, Climate Risk, and DeFi
Federal Reserve Chairman, Jerome Powell:
No transparency, no regulation, no stablecoins or crypto. We need to be very careful how crypto activities are taken within the regulatory perimeter, wherever they take place there is need for more appropriate regulation.
Managing director of the Monetary Authority of Singapore, Ravi Menon
I see more promise in stablecoins, however this will depend on the regulatory regime in place to track them.
- Stuck in limbo, Andrew Smith, government and regulatory affairs director for America at GBBC Digital Finance told AltFi that the current US stablecoin regulatory landscape has "proven impossible for folks to figure out".
- Across the Atlantic, Smith's colleague Lavan Thasarathakumar, government and regulatory affairs director EMEA at the GDF echoed his sentiment: [stablecoins] are a global technology," he told AltFi, adding that regulatory isolation would only cause greater fragmentation between jurisdictions.
See: UK Proposes Regulations That Would Recognize Stablecoins As A Form Of Payment
- Both Smith's and Thasarathakumar's statements are eerily true. In the US, a slew of stablecoin bills have been proposed to Congress are stuck in deadlock and the EU's Markets in Crypto Assets (MiCa) framework lacks practicality. The UK is stuck between a rock and a hard place, trying to remain relevant in the stablecoin debate.
- Traditional banks and consortiums are well aware of this and are ready to contest crypto-native stablecoin issuers on the grounds of regulation and compliance as the race for the future of money heats up.
Tough in the US
- 100% collaterisation: In the US, stablecoins permitted to operate and be issued have been called 'payment stablecoins' and 'qualified stablecoins', which must be redeemable on demand on a one-to-one basis in US dollars, must be 100 per cent collateralised in the form of high-quality reserves including cash, cash equivalents or short-term obligations and must provide independent audits of its reserve composition.
- Under these rules and directions, algorithmic stablecoins such as terraUSD would not qualify since such stablecoins are not backed by fiat collateral. Other major stablecoin issuers who would not pass the collateralisation test are market leader Tether and Maker DAO's DAI.
- Banks and non-banks: In the US there is split between depository institutions and non-depository institutions. Across the seven major stablecoin-related acts unveiled this year, all call for a separation between banks and non-bank issuers, paving a pathway for traditional banks to issue and custody of their stablecoins.
See: Vitalik: Designing Principles-based Stablecoins that (may not) collapse
- FDIC: Critically, the right to issue stablecoins revolves around federal deposit insurance, which is overseen by the Federal Deposit Insurance Commission (FDIC). At present, the FDIC has refused to insure crypto-native firms, with allegations suggesting that the FDIC has urged banks not to interact with crypto firms.
- There are two reasons why FDIC insurance is paramount to crypto-native stablecoin issuers: maintaining their peggs and the right to custody crypto.
- Stablecoins will and have been vying for their bank charters, which are difficult to acquire, particularly if the FDIC does not wish to insure them.
- Regulatory turf battle: To add to the regulatory disarray, there is an ongoing battle between the Securities and Exchange Commission (SEC), which views most cryptos as securities and the Commodity Futures Trading Commission (CFTC) which thinks of them as commodities.
Continue to the full article --> here
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, 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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Mastercard Launches ‘Crypto Secure’ Powered by CipherTrace to Combat Fraud-prone Crypto Exchanges
CNBC | Ryan Browne | Oct 4, 2022
Image: Pexels/Pixabay
Mastercard launches fraud detection software: 'Crypto Secure'
- Why: Mastercard will on Tuesday debut a new piece of software that helps banks identify and cut off transactions from fraud-prone crypto exchanges, the company told CNBC exclusively. It already uses similar technology to prevent fraud in fiat currency transactions. With Crypto Secure, it's expanding such functionality to bitcoin and other virtual currencies.
- Ajay Bhalla, Mastercard's president of cyber and intelligence business, said the move was about ensuring its partners can "stay compliant with the complex regulatory landscape."
- Despite the slump in digital token prices, crime in the industry has shown no signs of abating.
See: Digital Asset Classification vs Wire Fraud: What’s the Most Powerful Law in Crypto Right Now
- Called Crypto Secure, the system uses "sophisticated" artificial intelligence algorithms to determine the risk of crime associated with crypto exchanges on the Mastercard payment network. The system relies on data from the blockchain, a public record of crypto transactions, as well as other sources.
- The service is powered by CipherTrace, a blockchain security startup Mastercard acquired last year. Based in Menlo Park, California, CipherTrace helps businesses and government agencies investigate illicit transactions involving cryptocurrencies. Its main rivals are New York firm Chainalysis and Elliptic, which is based in London.
Continue to the full article --> here
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, 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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McKinsey: Beyond the Hype of Web3. Potential and Challenges
McKinsey & Company | Anutosh Banerjee, Robert Byrne, Ian De Bode, and Matt Higginson | Sep 26, 2022
Undeniable Potential of Web3
- The core distinctive feature of Web3 is the decentralization of business models. Web3, the next iteration, potentially upends that power structure with a shift back to users. Open standards and protocols could make their return.
- The intent is that control is no longer centralized in large platforms and aggregators, but rather is widely distributed through “permissionless” decentralized blockchains and smart contracts.
- Governance is meant to take place in the community rather than behind closed doors.
- Revenues can be given back to creators and users with some incentives to finance user acquisition and growth.
- Three fundamentals:
- Blockchain that stores all data on asset ownership and the history of conducted transactions.
- The “blocks” in blockchain are individual segments of data that are interlinked or chained together. As new data are added to the network, a new block is created and attached permanently to the chain. All nodes are then updated to reflect the change.
- The lack of central data storage is a critical differentiator from traditional databases which means that the system is not subject to a single point of failure or a single point of control or censorship. User data are no longer fragmented across platforms, nor are they proprietary or for sale.
- Blockchain that stores all data on asset ownership and the history of conducted transactions.
See: Highlights from McKinsey’s “Value Creation In The Metaverse” Report + Web3 for Skeptics by Brainsy’s CIO
- Smart Contracts that represent application logic and can execute specific tasks independently.
- Software programs stored on the blockchain that automatically execute a verified transaction based on predefined and agreed parameters. They require careful preparation and setup because they are often deployed as immutable programs, but once in place, they can be executed rapidly and cost-efficiently without the need for intermediaries and their extractive revenues.
- These applications are often governed by a decentralized autonomous organization (DAO), a form of collective governance by users of the application who own governance tokens of the smart contract.
- Digital assets that can represent anything of value and engage with smart contracts to become “programmable.”
- Digital assets are intangible digital items with ownership rights. As such, they are supposed to represent verifiable and ownable digital values—although in many geographies, the legal framework surrounding these digital assets and their ownership rights is not sufficiently clear yet.
- 5 types of digital assets:
- native tokens, which are the monetary incentives used to compensate nodes for maintaining and updating the respective blockchain
- stablecoins, which are supposed to represent cash on the blockchain and are pegged to fiat currencies like the US dollar, or central bank digital currencies (CBDCs), which are regulated by a central bank 2
- governance tokens, which are tokens that represent voting rights on the functional parameters of smart contracts
- non-fungible tokens (NFTs), which are a unique, indivisible digital asset with provable ownership
- digital assets that represent claims on real-world assets such as commodities, real estate, or intellectual property, and are “tokenized” into divisible digital assets on the blockchain
See: Future of Web3 Gaming: Play-to-Own (Ecosystems)
Web3 effectively enables traditional revenue streams to accrue to the users of a platform, enhancing the user value proposition relative to their Web2 equivalents.
Risks and Challenges Still to be Addressed
- Web3 is now spreading into many other sectors, including the social sector and carbon markets, art, real estate, gaming, and more. It is also a building block for an interoperable metaverse, an entirely virtual parallel universe under construction that is attracting massive investment from consumer companies and venture capitalists, among others
- The chief challenge is regulatory scrutiny and outlooks. Regulators in many countries are looking to issue new guidance for Web3 that balances the risks and the innovative potential, but the picture remains unsettled. For now, there is a lack of clarity—and jurisdictional consistency—about classifying these assets, services, and governance models.
See: How will Web3 impact the future of work?
- Governance remains a work in progress, and the integrity of decentralized autonomous organizations—the collective community mechanisms that are supposed to oversee this new decentralized world—varies widely and is often not yet rock-solid, although it is evolving.
- User experience in this new ecosystem is not yet ready for mainstream adoption. Interfaces are often poorly designed, and the underlying technology is still too cumbersome for users to have a seamless experience.
- Security is also a concern: until users have peace of mind, they will likely not adopt this technology en masse. Fraud continues to be a risk, with a variety of “rug pulls,” Ponzi schemes, and social-engineering scams dogging the nascent sector, while know-your-customer and anti–money laundering procedures are often lacking.
- Data privacy in the current system is arguably lacking, and transaction cost is also a factor, making some of the technology protocols too expensive to use at present.
Continue to the full article --> here
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, 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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