Cryptocurrency roundup for June 21: Bernstein pegs tokenization market Trillion, Japan's crypto exchanges seek ease and more

Deutsche Bank AG has taken proactive steps toward entering the digital assets space by formally requesting regulatory approval to provide custody services for cryptocurrencies and other digital assets.

> David Lynne, the head of Deutsche Bank's commercial banking division, shed light on the bank's latest move during a news conference.

> "We’re building out our digital assets and custody business,” he said and added, “We just put our application into the Bafin for the digital asset license,” acknowledging the submission of their application to Germany's financial regulatory authority, Bafin.

> This development is an integral component of Deutsche Bank’s broader initiative to boost revenue through fees within its corporate banking sector, according to Lynne. Continue here.

Tokenization, a technique through which real-world assets are transformed into blockchain-based tokens, could unlock a mammoth market potential of around $5 trillion within the next half-decade, according to a recent research report by Bernstein.

> The report, released on Tuesday, emphasized that this explosive growth could be spearheaded by stablecoins, central bank digital currencies (CBDCs), securities, private market funds, and real estate.

> Delving into the specifics of currency tokenization, Bernstein’s research indicates that stablecoins and central bank digital currencies could be leveraged for on-chain deposits and payments.

> “Over the next five years, we expect a swell in the stablecoins and CBDC tokens in circulation, led by China’s CBDC program,” revealed analysts including Gautam Chhugani. More here.

Cryptocurrency exchanges in Japan are rallying for the softening of restrictions on margin trading despite the tumultuous crash of the global digital asset market last year.

> A considerable number of industry professionals are advocating for the authorization of retail investors to employ leverage ranging between four to ten times, whereas presently, investors can merely augment exposure by doubling through borrowing, as reported by the Japan Virtual & Crypto Assets Exchange Association.

> Genki Oda, the Vice Chairman of the association said, “Reforming the leverage rule could make Japan more attractive for crypto and blockchain companies.”

> He also posited that the revision would invigorate trading activities. Details here.

> Leading cryptocurrency exchange Binance has announced that it is in the process of integrating the Bitcoin Lightning Network to facilitate deposits and withdrawals.

> The announcement was made via a tweet from Binance, which confirmed that some users have already noticed the establishment of new Lightning nodes.

> “Some eagle-eyed users spotted our new lightning nodes recently. Yes - that's us! However, there's still more tech work to be done. We'll update once Lightning is fully integrated,” Binance stated in their tweet.

> The Bitcoin Lightning Network is a revolutionary “second layer” protocol that operates on top of the Bitcoin blockchain.

> It is specifically designed to exponentially increase the speed of transactions while simultaneously reducing network congestion. Full report here.

Australian payment provider Cuscal has made moves to introduce fresh restrictions on cryptocurrency transactions, raising eyebrows within the industry.

> Blockchain Australia, a prominent industry body, has voiced its concerns over the move and articulated the need for a balanced approach.

> Michael Bacina, Blockchain Australia’s Chair, and an established digital assets lawyer, said that as economic uncertainty rises, so does the probability of scams and fraud.

> “Australians rightly expect businesses they deal with to pitch in to help tackle this problem, but they also expect to be able to spend their money and use their assets as they choose, without undue restrictions. Striking a balance requires evidence-based decision-making so that the costs of protection are proportionate to the benefit that protection brings,” said Bacina. More here.

Gemini, a cryptocurrency exchange based in New York, has set its sights on the Asia-Pacific (APAC) region as it seeks to broaden its global presence.

> The exchange considers this region as a catalyst for the future expansion of the cryptocurrency market.

> The company conveyed its enthusiasm in a blog post, stating, “We are excited to announce our expansion plans in APAC as Gemini’s leadership team recently visited the region on their global odyssey to propel the promise of crypto.”

> This international move by Gemini appears to be a strategic maneuver to diversify its operations beyond the United States, particularly in light of the growing regulatory scrutiny that cryptocurrency exchanges have been facing in the country this year. Details here.

> EDX Markets, a crypto exchange exclusively for institutional investors, has launched with the backing of big financial players like Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp.

> This development has the potential to transform the cryptocurrency sector, particularly at a time when US regulatory authorities are intensifying their scrutiny of the industry.

> EDX Markets, which made its debut announcement in September 2022, has initiated trading in Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

> What sets EDX Markets apart from established crypto platforms like Coinbase Global Inc. and Binance Holdings Ltd. is its "non-custodial" model. Jamil Nazarali, EDX Markets' CEO, explained that the exchange doesn’t store clients' cryptocurrencies during the trading process. Details here.

In a notable development, Bitcoin has experienced a significant surge, surpassing the $28,000 mark for the first time since May 29. According to CoinMarketCap, the world's largest cryptocurrency by market capitalization witnessed a 4.7% increase over the past 24 hours, reaching $28,016 as of 4:05 pm in New York.

> This surge in Bitcoin's value has been attributed to positive market sentiment following asset manager BlackRock's recent filing for a bitcoin exchange-traded fund (ETF).

> The filing by BlackRock has also had a ripple effect on other Bitcoin-related investments, including a notable 400% surge in the trading volume of Grayscale's Bitcoin Investment Trust.

> Meanwhile, Ethereum, another prominent cryptocurrency, was trading at approximately 2.6% higher, reaching levels around 1780.