UK Finance launched a tokenized deposits pilot in partnership with six major banks, including Barclays, HSBC and Lloyds Banking Group. UK Finance, a trade association representing over 300 financial services firms in the United Kingdom, has launched a joint pilot project for tokenized sterling deposits (GBTD). The trade group began the pilot phase for the tokenized deposits project, which aims to provide a digital representation of traditional British pound commercial bank money, it announced on Friday. The pilot was launched in collaboration with six major banks operating in the UK, including Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide and Santander. Read more
Aster reimbursed traders after an XPL glitch caused liquidations, as its perpetual DEX drove daily trading volumes to a record of more than $100 billion. BNB Chain derivatives decentralized exchange (DEX) Aster completed reimbursements to traders hurt by a glitch in its Plasma (XPL) perpetual market that briefly drove prices above market levels. According to Abhishek Pawa, the CEO of Web3 agency AP Collective, the issue stemmed from a misconfigured index hard-coded at $1. With the mark price cap lifted before the fix, XPL futures on Aster spiked to nearly $4 while other venues remained $1.30. The sudden Friday price discrepancy triggered unexpected liquidations and abnormal fee charges, causing losses to users. However, the platform moved quickly, assuring its users that all funds were safe and promising to compensate them for any losses. Read more
AI threat detection and enhanced wallet management may save crypto firms from North Korean infiltrators, cybersecurity experts told Cointelegraph. Cryptocurrency companies need to strengthen defenses against North Korean hackers who are seeking jobs at major Web3 businesses to stage large-scale exploits, security experts told Cointelegraph. Hiring North Korean developers may open a crypto project’s infrastructure to the threat of hacks and data breaches similar to the Coinbase data breach in May, which exposed the wallet balances and physical locations of about 1% of the exchange’s monthly users, potentially costing the exchange up to $400 million in reimbursement expenses. To fight this growing threat, the industry needs to adopt enhanced wallet management standards, real-time AI monitoring for the early prevention of exploits and more secure employee vetting practices, crypto security experts told Cointelegraph. Read more
DBS Hong Kong CEO Sebastian Paredes warned that Hong Kong’s new stablecoin KYC and AML rules will largely block their use in onchain derivatives trading. Hong Kong’s stablecoin regulatory framework limits their use for derivatives trading on blockchain networks, according to Sebastian Paredes, CEO of DBS Hong Kong. According to a Friday report by local news outlet The Standard, Paredes said that Hong Kong regulations on stablecoin Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements will significantly restrict their use for onchain derivatives trading. He said the bank would monitor developments, but focus instead on building broader stablecoin capabilities in Hong Kong. His comments followed the rollout of Hong Kong’s new stablecoin rules on Aug. 1. The rules immediately criminalized the promotion of unlicensed stablecoins and established a public registry of authorized issuers. Read more
Ether price weakness over the past two weeks has resulted in the relative strength index flashing a potential bottom signal not seen since early April. Key takeaways: Ether’s “rare oversold” RSI, historically tied to major ETH price rallies, suggests a price reversal in the short-term. ETH traders say price must stay above the $3,800-$3,900 range to avoid more losses. Read more
World Liberty Financial will launch a WLFI token buyback and burn after a 41% price drop in September, aiming to cut supply and stabilize value. The Trump family-backed decentralized finance (DeFi) project World Liberty Financial will launch a token buyback and burn program this week after WLFI tokens lost 41% of their value in September. On Friday, World Liberty announced that its team will implement the token buyback and burn mechanism this week. The project said the initiative would be publicly disclosed, promising to share updates on each buyback and burn once they are conducted. Token buybacks and burning mechanisms are usually implemented to absorb selling pressure when prices drop. Buybacks are when companies repurchase their tokens, while burning sends the tokens to an unusable address. The mechanisms essentially lower the amount of tokens circulating in the market. Read more