Here is a summary of the top cryptocurrency and decentralized finance news from the first week of June
BNY Mellon to Launch Crypto Custody Services
Earlier this week the Business Post in Ireland reported that BNY Mellon, the U.S.-based custody and asset management firm, will introduce services in the country. Its Digital Innovation Hub is planned to be based in Dublin and will offer crypto custody services, signaling the bank’s commitment to a future that includes digital assets. The firm intends to support clients who wish to trade digital assets regulated by the Central Bank of Ireland.
The Central Bank of Ireland has already expressed concern about the potential impact of these assets. In a Bloomberg interview on Monday, Derville Rowland, a senior official at the Central Bank, warned that investors risk losing their holdings in the crypto space.
She also described digital currencies as speculative and largely unregulated. With such a strong statement from someone who will soon chair the European Securities and Markets Authority’s investment management committee, the future of cryptocurrencies across Europe appears uncertain.
Coinbase Card Now Supports Apple Pay and Google Pay
Coinbase Card users can now make crypto-backed payments through Apple Pay and Google Pay. Coinbase confirmed the update in a blog post on Tuesday as part of efforts to simplify payments for crypto users.
The company behind the largest U.S. exchange also plans to offer select users a 4% crypto rewards bonus on eligible spending. That rewards program will initially be available only to customers in the United States, with plans to roll it out to other regions over time.
Coinbase first launched its Visa card in 2019 in the U.K. to enable Bitcoin transactions at merchants. The service has since expanded to several countries, including the U.S., where users have been on a waiting list since last October. The integration with Apple Pay and Google Pay arrives amid rapid development in mobile payments and the wider crypto ecosystem.
Standard Chartered Launches Crypto Brokerage in Europe
Standard Chartered announced on Wednesday that it will launch crypto brokerage and exchange services, underscoring the bank’s embrace of digital assets. The planned services will target institutional clients in Europe by connecting them with counterparties trading Bitcoin and other digital assets.
Standard Chartered’s innovation arm, SC Ventures, will collaborate with OSL, a Hong Kong–based crypto firm, on the new offering. OSL is affiliated with BC Tech Group. The launch comes after rival HSBC said it would not offer crypto services to customers in the near term, and after that bank took steps to limit customer exposure to firms such as MicroStrategy that hold crypto assets.
Alex Manson of SC Ventures said the bank’s conviction in digital assets remains strong and that the new product will provide a secure, reliable trading venue for large institutional investors.
Thailand’s SEC Moves to Regulate DeFi
On June 1, Thailand’s securities regulator announced that all decentralized finance projects involved in issuing digital assets must obtain a license from the authority. This is the first formal communication on DeFi from an Asian regulator; the SEC warned that token issuers must disclose information to authorities and are now required to use licensed portals for their activities.
The statement followed the launch of TukTuk, a DeFi project whose token, TUK, surged by hundreds of dollars before collapsing below $1 in what appeared to be a pump-and-dump event. The SEC also cautioned potential DeFi investors to conduct thorough due diligence on project security and technical risks before investing.
China Plans Another Major CBDC Test
China has unveiled plans for another pilot of its central bank digital currency (CBDC) in Beijing during the upcoming Dragon Boat Festival. Approximately 40 million units of the digital currency will be distributed via a lottery. The amount—roughly $6.2 million—will be given to 200,000 Beijing residents in red envelopes, each containing 200 digital yuan.
Participants can register their names and ID numbers through one of two designated bank apps before June 7. Winners will be notified on June 11 and can spend their prizes at selected merchants across the city until June 20.
China’s digital renminbi (e-CNY) has been in development since 2014 and the People’s Bank of China is now scaling up trials. Speaking at the Boao Forum for Asia in April, Li Bo, deputy governor of the PBoC, said China plans to make the e-CNY available to international visitors during the next Winter Olympics in Beijing.