Xapo Integrates USDT Payment Rails, Police Reportedly Arrest Trust Reserve Core Team, Reserve Bank of India Deputy Governor Advises All Banks to Adopt Blockchain and AI

Get your daily, bite-sized summary of cryptoassets and blockchain-related news – examine the stories that fly under the radar of today’s crypto news.
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Banking news

• Licensed private bank Xapo Private Bank has become the first bank in the world to integrate Tether (USDT) payment rails, according to a press release. Starting with a gradual rollout, the payment rails will be fully accessible to all members by the end of May, it says. “Building on its existing USDC rails launched in March, the bank now enables its members to leverage the world’s most widely used stablecoin for payments as an alternative to time-consuming and costly FAST shining,” said the bank.

Legal news

• The core team of Trust Reserve (earlier CNHC Group), which issues two stablecoins (a CNY-backed stablecoin and a HKD-backed stablecoin) — was arrested by police in China on May 29, according to PANews. The news agency claims to have visited the project’s office in Shanghai, and found it empty. with a notice on the door that said “judicial seizure”.

Regulatory news

• Mahesh Kumar Jain, Deputy Governor of Reserve Bank of India (RBI), recommended all Indian banks to adopt artificial intelligence (AI) and blockchain technology to gain sustainable growth and stability. “To prepare for the future,” Indian banks should “adopt innovative technologies like AI and blockchain,” Jain said at a conference organized by the RBI for the CEOs of Indian banks. They should also focus on digital transformation, improve customer experience and invest in cyber security measures, he advised.
• The The Central Bank of the UAE (CBUAE) issued guidance regarding AML and CFT measures for crypto businesses, outlining the risks associated with handling virtual assets and virtual asset service providers (VASPs). The guide noted the recommendations from Financial Action Task Force (FATF). “This guidance shall come into force immediately upon issuance by the CBUAE with [licensed financial institutions] is expected to demonstrate compliance with the requirements within one month of its entry into force,” it said.
• Saifedean Ammous, the author of ‘The Bitcoin Standard’, has been appointed as a financial advisor to National Bitcoin Office of El Salvador. “When the author of Bitcoin Standard met the head of Bitcoin Country, big things were bound to happen,” a tweet on May 30 soadding that “Dr. Ammous has declined any remuneration for the role and is only interested in supporting the President [Nayib] Bukele’s Bold Politics of Economic Freedom and Bitcoin.”

Exchange news

• Binance is looking at working with banks to allow some of its institutional clients to keep their trading collateral with a bank rather than with the crypto platform, which could help reduce counterparty risk, Bloomberg reported. Switzerland-based FlowBank and Liechtenstein-based Knock Frick have been mentioned as potential intermediaries for the service, the report said, citing people familiar with the matter. Under one version of the proposal Binance discussed, customers’ cash in the bank would be locked up through a three-party agreement while the exchange lends them stablecoins to serve as collateral for margin trading, the people said. The money kept at the bank could then be invested in money market funds to earn interest, they said.
• Create 1 block chain XDC network (represented by TradeFinex Tech Ltd) announced its collaboration with SBI VC Trade Co. Ltd.a Japanese cryptocurrency exchange within SBI Group. This strategic collaboration marks a significant milestone for XDC Network as it expands its ecosystem in the Japanese market, the press release states.

Payment news

• Financial company ZBX announced its arrival in Hong Kong and the planned launch of a ZBX Web 3.0 debit card. The card can be used for transactions in both cryptocurrencies and traditional fiat currencies, says the press release. “To ensure a flawless user experience and improve the functionality of their debit card, ZBX actively seeks cooperation with key players in the Hong Kong Web 3.0 industry,” it added. These companies will be invited to participate in the first round of beta testing, gain early access to debit card programs and provide valuable feedback for further refinement.

Mining news

• Tether, the company behind the USDT stablecoin, announced that it is investing resources in energy production and the launch of sustainable Bitcoin mining in Uruguay, in partnership with a locally licensed company. “With this, Tether has expanded its reach from finance and communications to include the energy sector,” the press release said, adding that the company is “actively seeking to strengthen its team by recruiting experts in the energy sector.”