ChainCatcher news, according to Cointelegraph, the Bank for International Settlements (BIS) has released a research report analyzing the liquidity provision situation of the decentralized exchange (DEX) Uniswap v3.The report points out that, despite being technically decentralized, the liquidity market is still dominated by a few large participants, making it difficult for retail liquidity providers (LPs) to compete with institutions.These big players hold about 80% of the total locked value, focusing on liquidity pools with high trading volumes and low volatility. The research also found that retail LPs have relatively low trading fee earnings and investment returns, and they often incur losses on a risk-adjusted basis. BIS believes that this institution-dominated phenomenon challenges the decentralized financial system concept of DEX.

ChainCatcher news, senior banking officials and financial executives from the Bank for International Settlements (BIS) discussed the possibility of shutting down mBridge at a meeting in Washington. This discussion stemmed from concerns over remarks made by Russian President Vladimir Putin during the opening ceremony of the BRICS summit in Kazan, where he proposed the idea of establishing a BRICS-led alternative international payment system.mBridge is a cross-border payment system operated by the central banks of China, Thailand, the UAE, and Hong Kong (Saudi Arabia joined this year as a new member), and is supported by the BIS Innovation Hub. mBridge uses distributed ledger technology to enable faster payments that bypass intermediary banks.

ChainCatcher news, according to TheBlock, the Bank for International Settlements report emphasizes that major financial institutions are trialing tokenized deposits to improve settlement efficiency and programmability. However, the transition from traditional finance to tokenization may pose risks, including potential governance and legal framework issues, as well as credit, liquidity, custody, and operational risks. These challenges may differ from those faced by traditional market infrastructure, thus requiring a comprehensive assessment by central banks.Of course, tokenization also has many benefits, including reduced transaction costs and faster transaction speeds. Governance, legal, and liquidity risks are the key concerns of central banks regarding tokenized assets.

According to ChainCatcher news, the Bank for International Settlements has partnered with some of the world's largest banks and credit card companies to launch a blockchain-based project aimed at fundamentally reforming global cross-border payments. JPMorgan Chase, Deutsche Bank, UBS Group, as well as Visa Inc. and Mastercard have all joined the Agora project, which started in May. The complete list of private sector participants includes 41 companies that will collaborate with seven central banks from regions such as the United States, the Eurozone, Japan, and the United Kingdom.The Bank for International Settlements is exploring the creation of an international platform through Agora (which means market in Greek), where tokenized assets can be bought and sold using central bank-supported digital currencies issued by central banks that issue the world's most important reserve currencies. On this unified ledger, investors can conduct cross-border transactions using central bank money that is virtually risk-free. Currently, the only relatively safe currency is cash, which does not exist in digital form.

ChainCatcher news, according to CoinDesk, the Bank for International Settlements (BIS) stated that over 40 financial companies will explore the application of tokenization in wholesale cross-border payments through the BIS's Project Agorá.These financial companies were selected by the BIS after a public call for participants in May. The project has now entered the design phase.The BIS stated on its website that the project is based on its unified ledger concept, "which will study how to seamlessly integrate tokenized commercial bank deposits with tokenized wholesale central bank currency into a programmable core financial platform."

ChainCatcher news, according to CoinDesk, the Bank for International Settlements (BIS) and the Bank of England have released their Pyxtrial project report, which aims to monitor the reserve status of asset-backed stablecoins and tokenized assets, to be used for stablecoin balance sheet regulation, thereby helping countries respond more effectively to the risks posed by stablecoins. Currently, the system is not yet fully prepared for launch. Countries have also emphasized concerns about the recent runs on stablecoins.The Bank for International Settlements also stated that Pyxtrial has the potential to monitor tokenized products backed by real-world assets (RWA).

ChainCatcher news, according to CoinDesk, the Bank for International Settlements (BIS) and the Bank of England (BoE) stated that the balance sheets of stablecoin assets can be regulated.According to their latest project report released on Wednesday, the Pyxtrial project has developed a prototype data analysis pipeline that can provide regulators with near real-time data on stablecoin liabilities and their supporting assets. The report stated, "This technology is the first step towards enabling regulators to proactively identify issues related to stablecoin support and assist in the development of policy framework tools."

ChainCatcher news, the Bank for International Settlements (BIS) has released new guidelines for banks wishing to hold cryptocurrencies such as XRP, ETH, and BTC. In the latest requirements, the BIS stipulates that banks' total exposure to secondary cryptocurrencies must not exceed 1% of their total Tier 1 capital; any single secondary cryptocurrency must not account for more than 5% of the total holdings of secondary assets. The guidelines are expected to be implemented by January 1, 2026.It is reported that the BIS classifies XRP, BTC, ETH, and some stablecoins lacking effective stabilization mechanisms as secondary cryptocurrencies, in order to distinguish secondary cryptocurrencies from other cryptocurrencies.

ChainCatcher news, according to CoinDesk, the Bank for International Settlements (BIS) stated in its annual report released on Sunday: "Although current pricing in financial markets suggests that the likelihood of public finance pressure is low, confidence could quickly collapse if economic momentum weakens and there is an urgent need for public spending in both structural and cyclical terms. The government bond market will be the first to be impacted, but the pressure may spread more widely, as it has in the past."The BIS did not specifically point out any countries but warned that fiscal deficits in developed economies should not exceed 1% of Gross Domestic Product (GDP) this year, down from 1.6% in 2023.

ChainCatcher news, according to CoinDesk, based on a survey released by the Bank for International Settlements (BIS) on Friday, an increasing number of central banks are exploring Central Bank Digital Currencies (CBDCs). Among the 86 banks participating in the survey, 94% indicated that they are researching a digital version of their national currency. In a survey conducted by the Bank for International Settlements in 2021, 90% of the 81 banks surveyed stated that they were conducting related research.The surveyed banks also indicated that they are more likely to issue wholesale CBDCs rather than retail CBDCs in the next six years. The wholesale version will be accessible only to banks and financial institutions, while the retail version will be available for public daily use.

ChainCatcher news, the Bank for International Settlements (BIS), headquartered in Switzerland, announced on Wednesday that the Saudi Arabian central bank has joined the mBridge project, a cross-border experiment using central bank digital currencies (CBDC) for international trade.The mBridge project was launched in 2021 as a collaborative initiative between the BIS Innovation Hub and the central banks of China, Hong Kong, Thailand, and the United Arab Emirates (UAE), aimed at testing the feasibility of using CBDC for instant cross-border trade and other payments on the project's blockchain, the mBridge Ledger.

ChainCatcher message, to improve traditional cross-border payments, the Bank for International Settlements announced the launch of the project Rialto. This project aims to enhance instant cross-border payments by combining modular foreign exchange components with central bank wholesale digital currency (CBDC) settlement. The initiative is launched by the Bank for International Settlements Innovation Hub and the Singapore Centre in collaboration with several central banks, aiming to address the current challenges of high costs, slow speeds, and complexity in foreign exchange services.

ChainCatcher news, according to LedgerInsights, the Bank for International Settlements (BIS) Innovation Hub has launched Project Agorá, in collaboration with seven central banks, to transform cross-border payments through tokenization technology. The project utilizes wholesale central bank digital currencies (wCBDC) and tokenized deposits to execute payments on a unified ledger, simplifying compliance processes.It is reported that tokenization can achieve atomic settlement, meaning payments are simultaneously reflected in the balances of all banks, and it simplifies Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. The BIS is also experimenting with shared protocols in Project Mandala, providing "compliance proof," and suggesting the use of Artificial Intelligence (AI) to establish AML monitoring models. The BIS emphasizes that the next generation of correspondent banking should be inclusive, accessible, and capable of capturing network effects.

ChainCatcher news, according to CoinDesk, a report released by the Financial Stability Institute (FSI) of the Bank for International Settlements (BIS) warns that countries need to harmonize their regulatory frameworks for stablecoins. The FSI was jointly established by the Bank for International Settlements and the Basel Committee on Banking Supervision, with the mission to assist regulatory authorities around the world in strengthening their financial systems.The FSI report states that different jurisdictions have varying definitions and classifications of stablecoins, which may pose risks to financial stability. There are also discrepancies in the disclosure requirements for reserve assets that stablecoin issuers hold to maintain the value of cryptocurrencies relative to their reference currencies. A consistent regulatory framework and its global implementation are crucial for addressing stablecoin risks, preventing regulatory arbitrage, and ensuring a level playing field in the digital asset ecosystem.

ChainCatcher news, according to CoinDesk, the Bank for International Settlements (BIS) announced on Wednesday that a global central bank group is advancing a project called Agorá. The project aims to establish a "usable" solution that integrates tokenized commercial bank deposits with central bank funds using smart contracts and programmability.It is reported that the project brings together seven central banks from the UK, Japan, South Korea, Mexico, Switzerland, New York, and Europe.

ChainCatcher message, the research from the Bank for International Settlements (BIS) emphasizes the importance of borrower behavior in the decentralized finance space and the dynamics of the DeFi market for the design and management of platforms involving tokenized assets.The study found that DeFi borrowers typically avoid excessive leverage, adopt conservative practices, and deposit more funds when past returns are higher. These findings contribute to understanding the impact of DeFi on financial stability and provide countermeasures.

ChainCatcher news, the Bank for International Settlements has proposed global stablecoin regulatory recommendations. The recommendations aim to address the financial stability risks posed by global stablecoins at both domestic and international levels, while supporting innovative and flexible regulatory approaches.Key recommendations include that global jurisdictions should be ready to regulate global stablecoin arrangements and ensure effective risk management frameworks. Additionally, there is a focus on aspects such as data storage, redemption rights, and prudential requirements.The Bank for International Settlements stated that while stablecoins can enhance the efficiency of financial services, they may also pose financial stability risks. The recommendations aim to promote consistent and effective regulatory approaches across various jurisdictions.

ChainCatcher news, according to Cointelegraph, the Basel Committee of the Bank for International Settlements (BIS) released a consultation document on October 17, proposing to require banks to disclose their cryptocurrency risk exposures. This consultation document, which focuses on banks' risk exposures to crypto assets, aims to develop a standardized "bank crypto asset risk exposure disclosure template and set," with a proposed implementation date of January 1, 2025. The Basel Committee has opened the proposal for public consultation, with a deadline of January 31, 2024, and the results of the consultation will be published on the Bank for International Settlements website.Under the new proposed regulations, banks will be required to provide quantitative data on their crypto asset risk exposures as well as corresponding capital and liquidity requirements. Banks will also need to provide qualitative data related to cryptocurrency activities. Additionally, banks must provide information on their accounting classifications for crypto assets and liability information.

ChainCatcher news, according to The Block, the Bank of Korea (BOK) plans to collaborate with the Bank for International Settlements (BIS) and other institutions to initiate a wholesale testing of central bank digital currency (CBDC).The Bank of Korea has released details of the experiment, which primarily focuses on the feasibility of a monetary system based on wholesale CBDC in the future. The pilot will test whether wholesale CBDC can be used as a settlement asset for tokenized deposits by commercial banks. The plan will also experiment with the programmability of tokenized deposits.