25 January

“Lawyers for Celsius Network said Tuesday that the bankrupt crypto lender is planning to reinvent itself as a new, publicly traded “recovery corporation” in order to exit the bankruptcy process – something it said could happen in “months.” Kwastaniet told the court that the decision to pursue the formation of a “recovery corporation” came after the company failed to receive any attractive bids for its assets.

Under the newly unveiled plan – which has yet to receive approval from the U.S. Trustee’s Office or other regulators – creditors with locked assets above a certain threshold would receive a token, called the Asset Share Token (AST), that reflects the value of their assets. AST holders would either be able to hold their tokens, which lawyers said would entitle them to dividends over time, or sell them on the open market.

The rest of the platform’s customers, which Celsius’ lawyers estimated would be between 60% to 70% of its customer base, would receive a one-time distribution in liquid crypto.

[The distribution] would be at a discount. We’re not envisioning a full recovery, but it’s a meaningful recovery.

Though Celsius’ proposed solution is different from those that similarly situated firms such as Voyager Digital have pursued, it’s not totally unheard of in the crypto industry. When crypto exchange Bitfinex was hacked in August 2016 by a still-unknown hacker who robbed the exchange of nearly 120,000 bitcoin, it created tokens, called BFX tokens, each representing the dollar value of crypto lost, and allocated them to victims. BFX holders were then either able to redeem the tokens for their dollar value or exchange them for stock in the exchange.”

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“Wilshire, a private investment management firm, tapped crypto trading firm FalconX to provide digital asset indexes for its institutional clients. The two firms will work together on a set of single-coin, multicoin and thematic indexes for institutional investors with access to the crypto derivatives market.

Both FalconX and Wilshire say the ultimate value in digital assets will be as a gateway to the tokenization of other assets. FalconX aims to address issues related to market fragmentation, price discovery and unreliable market data.”

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The move will be the first by a private bank to issue shares as ledger-based securities under Swiss law, the company said in a press release. Cité will be partnering with digital assets firm Taurus to issue its tokenized shares as well as manage the smart contract that creates the shares and perform asset servicing of its securities.

The tokens were created using the CMTAT, an open-source smart contract published by the CMTA and specifically dedicated to the tokenization of securities, and recorded on Ethereum.

Taurus, founded in April 2018, obtained a securities license last year from the Swiss Financial Market Supervisory Authority to provide investors and banks the ability to trade a number of assets, including tokenized securities. The company has been involved in the tokenization of 15 companies so far, covering equity, private debt, and structured products from firms in Switzerland as well as Europe.

Digitization of private assets and securities is becoming the new standard in the digital asset industry.

It was important for our bank to be among the first to take advantage of the new possibilities offered by Swiss law for the digitalization of securities by tokenizing our own shares.”

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Even though the European Central Bank has yet to decide whether to issue a central bank digital currency (CBDC), the commission has indicated new laws could be needed to assert a digital euro’s status as legal tender and set anti-money-laundering rules. The bill is set to be published by the commission May 24. It’s up to the European Parliament and governments of countries in the EU to ‘look at the finer points around the use cases of a digital euro and the technology to be used.’

Our legislation will be the framework for a digital euro.

A separate initiative on virtual worlds is due May 3, to be led by EU competition and digital commissioner Margrethe Vestager. Perhaps with an eye on Meta Platforms’ (META) incursion into the sector, two of Vestager’s officials have previously expressed concerns that large companies could come to dominate the metaverse and damage competition.”

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Peirce highlighted that the industry must remember that the underlying technology is about “solving a trust problem” and how people can interact and transact with people they don’t know.

Traditionally, people have looked to centralized intermediaries or government to solve this problem, but technology like cryptography, blockchain and zero-knowledge proofs offer new solutions.

The commissioner also urged “people who believe in crypto’s future” not to wait for regulators to fix problems but instead act to stamp out harmful practices and encourage good behavior within the industry.”

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“Finding a decent bathroom amid the chaos and revelry of Mardi Gras can be tricky.

Several perks offered as part of a new Mardi Gras-themed NFT collection coming later this week from New Orleans-based Web3 venture studio NieuxCo include food and drink as well as access to special events, private parties, exclusive performances, and restrooms along the parade route.

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