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Circle’s Cross-Border Payments Network(CPN) Set to Transform Global Finance

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  • Circle’s new CPN offers real-time payments with USDC, EURC stablecoins.
  • Partnership with major banks like Deutsche Bank and Santander.
  • Modular APIs allow third-party developers to enhance CPN services.

Circle Internet Group announced plans to introduce the Circle Payments Network (CPN) in May. The platform seeks to facilitate instant cross-border payment settlements through regulated stablecoins USDC and EURC. The Circle Payments Network strives to connect real-time domestic payment systems which allows efficient cross-border money transfers.

The payment network will link financial institutions such as banks, payment service providers and digital wallets. CPN operates under strict governance requirements ranging from licensing, Anti-Money Laundering/Counter Financing of Terrorism and cybersecurity regulation. The framework allows only authorized participants to access the network and provide the required security standards for large-scale financial operations.

CPN operates through smart contract infrastructure and modular APIs. The platform enables third-party developers to build additional financial services and functions. CPN provides businesses, financial institutions and individuals with different use cases such as supplier payments, payroll processing and capital market trades.

Circle’s CPN Attracts Institutional Interest

The platform has received support from several major global banks. Circle has partnered with financial institutions such as Banco Santander, Deutsche Bank and Standard Chartered Bank to develop the network. These banks will collaborate to develop a solution that meets the needs of global financial institutions.

Fireblocks, a digital asset infrastructure platform, will connect its institutional clients to CPN, which further increases its market penetration. These partnerships enable Circle to develop fast and streamlined cross-border payments which rivals the existing solutions. 

The CPN platform aims to fix the problems that face current existing international payment systems. According to the World Bank, international money transfers cost more than 6% on average and take more than a day for settlement. The combination of stablecoins and reduced intermediaries on CPN will offer lower costs and quicker transaction times.

Impact of Circle’s Cross-Border Payments Network

The network is applicable in various sectors because it integrates domestic real-time payment systems. These sectors include supplier payments, remittances, internal treasury operations and on-chain financial applications. The platform’s infrastructure allows businesses to customize it to their particular needs.

The CPN launch seeks to reshape current cross-border payments. The network will deliver faster and more transparent payments that are ideal for modern financial applications. 

CPN pursues a compliance-first method which ensures fulfillment of global regulatory requirements. The increased stablecoin adoption has prompted a shift in regulatory measures across the world. Circle’s network seeks to address these market challenges and strengthen its position as a trusted solution for financial institutions. 

Sygnum Partners with Deribit to Enhance Institutional Crypto Security: Report

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  • Sygnum expands its custody service to Deribit, reducing counterparty risks while keeping assets secure off-exchange.
  • Sygnum Protect minimizes exchange-related risks, providing institutional traders with liquidity and safety.
  • The Fireblocks Off-Exchange solution boosts institutional adoption, enabling secure custody and easy integration.

Sygnum Bank has expanded its over-the-counter custody solution Sygnum Protect to Deribit, the largest crypto options exchange. This integration enables institutional traders to trade on Deribit’s contracts while banking on platform’s custody platform. The move is due to reduce counterparty risks and keep the funds out of the exchanges in order to shield them against cyber threats. Off-Exchange of platform also provides protection of funds, as all settlements and collateral are managed through the solution.

Sygnum Protect Minimizes Risks

Assets held directly on an exchange also pose certain risks to institutional traders, such as the risk of losing money to hacks, insolvencies, or any form of operational failure. These risks are minimal with Sygnum Protect since it has the features of traditional financial markets with the support of the regulated Swiss banking system. For institutions the service allows to obtain liquidity and at the same time the assets remain protected from the volatility of the exchange.

The latest hack attacks have made counterparty risks more pronounced in the crypto space and have led to massive withdrawals in exchanges. Platform’s Chief Product Officer Dominic Lohberger highlighted the need for custody to be separated from trading for a better level of security. 

“Counterparty risk awareness in crypto comes in cycles, and the recent major cyber-attack has triggered one of the largest waves of exchange derisking since FTX.”

This partnership also benefits Deribit because it provides its institutional clients with security and transparency. Regarding the benefits of the integration, the CEO of Sygnum, Luuk Strijers stated:

“We are very pleased to offer additional security and transparency capabilities to our institutional clients looking to trade crypto derivatives through Sygnum Protect.”

Fireblocks Off-Exchange Solution

Off-Exchange solution occupies a strategic position in the Fireblocks to connect and operate exchanges and other custodians without involving tedious and time-consuming integrations. Michael Shaulov, CEO at Fireblocks, said that the solution contributes to the institutional integration as it enables regulated custody services to be plugged directly into the trading infrastructure.

The crypto market is shifting towards solutions that are safer for trading as a new trend. The expansion of its custody services with Sygnum Protect is an effective approach toward ensuring the safety of assets, letting institutions plunge into crypto trading with minimal risks involved.

Chainlink and Fireblocks Partner to Enhance Regulated Stablecoin Issuance

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Chainlink Lаbs аnd Firеblocks hаvе formеd а kеy pаrtnеrship thаt could spееd up thе usе of rеgulаtеd stаblеcoins. Chainlink, known for its orаclе nеtwork, аnd Firеblocks, а lеаdеr in digitаl аssеt opеrаtions, аnnouncеd thеir collаborаtion on Sеptеmbеr 17th. Thеir goаl is to givе bаnks аnd finаnciаl firms а sеcurе, compliаnt solution for issuing аnd hаndling stаblеcoins globаlly.

Thе collаborаtion providеs а complеtе sеrvicе for stаblеcoin issuеrs, covеring thе еntirе procеss. Chainlink will еnаblе rеаl-timе trаcking of аssеt pricеs on vаrious blockchаins. At thе sаmе timе, Firеblocks’ tokеnizаtion еnginе will lеt issuеrs mint, mаnаgе, аnd distributе stаblеcoins sеcurеly.

Firеblocks offеrs а customizаblе suitе of KYC/AML аnd Trаvеl Rulе compliаncе tools, dеsignеd spеcificаlly for stаblеcoin usе cаsеs likе cross-bordеr trаnsаctions. Thеsе tools hеlp issuеrs mееt rеgulаtory rеquirеmеnts. Firеblocks’ provеn MPC wаllеts аlso еnsurе sеcurе custody of digitаl аssеts, providing multi-pаrty computаtion, customizаblе govеrnаncе, аnd аccеss to ovеr 80 blockchаins through robust APIs.

Chainlink Enhances Cross-Chain Data Transfers

Chainlink’s cross-chаin infrаstructurе аllows smooth trаnsfеrs of dаtа аnd vаluе аcross both public аnd privаtе blockchаins. Firеblocks’ аccеss to а lаrgе nеtwork of ovеr 2,000 institutionаl pаrtnеrs furthеr supports liquidity аnd distribution within crypto mаrkеts.

This pаrtnеrship mаrks а mаjor аdvаncеmеnt for thе stаblеcoin sеctor. Stеphеn Richаrdson, Mаnаging Dirеctor of Finаnciаl Mаrkеts аt Firеblocks, strеssеs thе importаncе of а solution tаilorеd for institutionаl usе, stаting, “Stаblеcoins аrе driving innovаtion in finаnciаl mаrkеts, аnd issuеrs nееd а comprеhеnsivе solution.” Firеblocks’ collаborаtion with Chainlink fills this nееd by offеring trаnspаrеncy аcross vаrious blockchаins, covеring rеsеrvеs, issuаncе, distribution, custody, аnd compliаncе.

Thе collаborаtion hаs rеcеivеd positivе fееdbаck from industry lеаdеrs. Pаblo Arbolеdа, CEO of Wеniа, а Bаncolombiа Group Compаny, еxprеssеd еxcitеmеnt for thе pаrtnеrship, sаying, “It is grеаt to sее Chainlink аnd Firеblocks, two of our COPW lаunch pаrtnеrs, work togеthеr to improvе thе usаbility of rеgulаtеd stаblеcoins.” His rеmаrks highlight thе potеntiаl to improvе industry stаndаrds аnd usеr еxpеriеncе, which could hеlp drivе broаdеr аnd morе еfficiеnt аdoption of digitаl аssеts.

Mеаnwhilе, Chainlink’s tokеn hаs dеcrеаsеd by 0.73%, trаding аt $10.61, with trаding volumе fаlling by 7.94% to $173.55 million in thе pаst 24 hours. Coinglаss dаtа аlso shows а 2.09% dеclinе in futurеs opеn intеrеst, now аt $140.93 million. Additionаlly, dеrivаtivеs volumе droppеd by 11%, indicаting incrеаsing invеstor skеpticism аbout thе аssеt’s short-tеrm outlook.

Related Readings | Singapore’s DBS Bank Breaks New Ground with OTC Crypto Options, Starting Q4 2024

Binance CEO Addresses BitForge Vulnerability: Swift Response To Crypto Wallet Threat

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Binance’s CEO, Changpeng Zhao (CZ), has stepped up to confront concerns surrounding the BitForge vulnerability, a critical security issue unveiled by the Fireblocks research team. This vulnerability has surfaced in some of the most widely embraced multi-party computation (MPC) protocols, including GG-18, GG-20, and Lindell17. In a reassuring Twitter statement, CZ affirmed, 

“This issue was present in the Threshold Signature Scheme (TSS) Library Binance open-sourced, which has been fixed. Thanks to Fireblocks for uncovering it! No Binance user funds were affected. Even MPC custody solutions have risks. Stay #SAFU!”

Binance’s Rapid Action

Fireblocks’ research revealed that BitForge encompasses a series of zero-day vulnerabilities that could enable privileged attackers to siphon funds from wallets without users or vendors detecting the breach—often within seconds.

Notably, the vulnerabilities within the GG18 and GG20 protocols raised significant alarms. These protocols, widely embraced by MPC wallet providers, exhibited a flaw due to the absence of a zero-knowledge proof, potentially leading to the complete extraction of private keys.

In 2020, the GG-18 and GG-20 protocols were previously updated to address a known vulnerability. However, these modifications inadvertently introduced another vulnerability. The gravity of this flaw varies according to the specific implementation of the GG protocols by different wallet providers. Attackers could extract keys with as few as 16 signatures in some cases, while in others, it could require an astonishing 1 billion signatures.

Contrastingly, the Lindell17 protocol vulnerability stemmed from deviations from the original academic paper’s specifications. This divergence could lead to mishandling failed signatures, potentially creating a backdoor for attackers and exploiting the party finalizing the signing process, whether the wallet provider or user, could allow attackers to exfiltrate the key after approximately 200 signature requests.

Fireblocks’ revelation exposed potential vulnerabilities and emphasized the significance of rigorous security assessments and continuous research in the cryptocurrency sphere. Binance’s prompt acknowledgment and resolution of the issue in its open-sourced TSS Library epitomize the industry’s proactive stance against potential threats.

As the crypto community maintains vigilance, Binance and other affected wallet providers’ transparency and swift responses have garnered praise. However, CZ rightly pointed out that even the most trusted solutions can harbor vulnerabilities.

Related Reading: | Regulatory Woes: Binance Misses SEC Deadline & Faces Opposition In Nigeria