RWA | Jotup

SingularityNET and OriginTrail: Advancing Decentralized Knowledge Graphs

Retrieved on:

torsdag, maj 30, 2024

This partnership signifies that two prominent players in the AI industry have come together to support a decentralized ecosystem where AI agents and infrastructure partners collaborate within the decentralized knowledge graph (DKG) landscape.

Key Points:

This partnership signifies that two prominent players in the AI industry have come together to support a decentralized ecosystem where AI agents and infrastructure partners collaborate within the decentralized knowledge graph (DKG) landscape.
This effort is aimed at enhancing the functionality and responsiveness of the decentralized knowledge graph within the OriginTrail network.
SingularityNET will then provide users access to its decentralized platform, where specialized AI models and Large Language Models (LLMs) can be purchased and used for data analysis.
The company will also develop AI models that can be trained directly on the Decentralized Knowledge Graph.

Artrade's New RWA Feature 'Fragments': Launching with a Picasso

Retrieved on:

onsdag, maj 29, 2024

Fragment, USDC, NFT, RWA, Real, NFC, DEX, Cryptocurrency

The artworks: They are only considering important artists for Their new 'Fragments' feature.

Key Points:

The artworks: They are only considering important artists for Their new 'Fragments' feature.
We've been sourcing and analyzing serious offers on Monet, Picasso, Warhol and Banksy among others.
First inaugural piece for this feature: A drawing by Pablo Picasso.
With Artrade's RWA Token, this value will be displayed in real-time and opened to a dynamic Web3 native secondary market.

2023 macroprudential stress test of the euro area banking system

Retrieved on:

tisdag, maj 28, 2024

Pillar, Money, Prescription, Economic statistics, Stage 2, Risk, Issue 1, Monetary economics, Research Papers in Economics, Social science, Real, Section 3, Central bank, Quarterly Journal, Canadian International Council, Depreciation, C54, JEL, GDP, Section 5, Reference, ESRB, ECB, Credit, BEAST, Reproduction, Calibration, Housing, Face, Coronavirus, EUR, NPL, Methodology, Comparison, Financial economics, NFCI, NFPS, Banco de Portugal, Remuneration, European Central Bank, Finance, Projection, RWA, European Systemic Risk Board, Literature, COVID-19, Business, Section, Statistics, Prasanta Chandra Mahalanobis, Relaxation, Deutsche Bundesbank, Forecasting, Aria, Frankfurt, Macroprudential regulation, International Journal of Forecasting, ROA, ISSN, Policy, Journal, VAR, Freedom, FSC, PDF, Unemployment, Acceleration, Tax, Section 4, Stress testing, Exercise, Bank of Lithuania, Quarterly Journal of Economics, Bank, NFC, Growth, Universal, Observation, EBA, MDA, Common equity

Contents

Key Points:

Contents
Abstract
2

1

Non-technical summary

3

2

Introduction

4

3

Macroeconomic scenarios

6

4

Methodological developments in macroprudential stress test
modelling

9

4.1

9

Updates to the model since the 2021 macroprudential stress test

5

Main findings on banking system resilience

13

6

Discussion of selected results

19

6.1

Bank lending

19

6.2

Asset quality and credit losses

21

6.3

Funding costs and net interest income

25

7

Conclusions

References

ECB Occasional Paper Series No 347

30
31

1

Abstract
This paper presents the updated macroprudential stress test for the euro area
banking system, comprising around 100 of the largest euro area credit institutions
across 19 countries.
Our results highlight the resilience of the euro area banking system and the
important role banks? adjustments play in the propagation of shocks to the financial
sector and real economy.
In line with the latest
EBA stress test, it also incorporates the effects stemming from the phasing-out of
non-conventional monetary policy.
The model tracks the
evolution of all euro area economies and that of 98 significant banks covering more
than 80% of the euro area banking sector.
ECB Occasional Paper Series No 347
3

2

Introduction
The 2023 macroprudential stress test assesses how adjustments to banks?
balance sheets in response to shocks feed back into the real economy.
The exercise employs a large-scale model of individual banks and countries
and applies the revised Banking Euro Area Stress Test (BEAST) framework.
The stress test results show that the euro area banking sector remains
resilient under the adverse scenario.
The impact of the stress test reveals significant
variability across banks, reflecting their diverse business models and heterogeneous
3
See ESRB (2023).
The macroprudential stress test captures how banks?
strategic adjustments to their balance sheets under stress feed back into the real
economy.
Euro area banks remain slightly profitable
in 2023, primarily driven by higher net interest income (NII) resulting from a
continued widening of margins.
Section 3 briefly presents the baseline and adverse scenarios that are
taken from the latest EBA stress test.
Section 4 describes the main developments of
the model since the last macroprudential stress test report.
Notes: Distribution of macroeconomic variables under the baseline and adverse annual scenarios across euro area countries.
ECB Occasional Paper Series No 347
8

4

Methodological developments in
macroprudential stress test modelling
The macroprudential stress-testing exercise employs the BEAST model, a
large-scale model linking the macroeconomy and the banking system.
The
macroprudential stress test model?s baseline scenario estimates of credit risk
parameters are more conservative than the risk parameters submitted by EU banks
in the EBA stress test.
The macroprudential stress test model shows a more positive contribution of
NII to capital compared with the EBA stress test under the adverse scenario
(Chart 4).
ECB Occasional Paper Series No 347
29

7

Conclusions
The macroprudential stress test is based on the same starting points and
macroeconomic scenarios as the EBA stress test but relaxes some of its key
assumptions.
The macroprudential stress-testing exercise considers the
development of 98 significant banks and 19 euro area economies, covering more
than 80% of the euro area banking sector.
Compared with the EBA stress test, the macroprudential stress test estimates
a lower depletion of the CET1 ratio in 2025 for the adverse scenario.
Budnik, K., Boucherie, L., Borsuk, M., Dimitrov, I., Giraldo, G., Gro?, J., Jancokov?,
M., Karmelavi?ius, J., Lampe, M., Vagliano, G. and Volk, M. (2021),
?Macroprudential stress test of the euro area banking system amid the coronavirus
(COVID-19) pandemic?, ECB, October.
European Central Bank (2023), ?2023 stress test of euro area banks?, Frankfurt am
Main, July.
European Systemic Risk Board (2023), ?Macro-financial scenario for the 2023 EUwide banking sector stress test?, Frankfurt am Main, January.

Designing a macroprudential capital buffer for climate-related risks

Retrieved on:

tisdag, maj 28, 2024

Methodology, Pressure, Risk, GVA, CRD, Investment, Bank of France, Research Papers in Economics, Social science, Section 3, FSB, Central bank, European, Learning, Canadian International Council, JEL, Ghent University, LGD, GDP, Figure, Section 5, Capital Requirements Directives, ESRB, EAD, ECB, Credit, Probability, Climate change, Journal of Financial Economics, Flood, Reproduction, A4, Corporate finance, Eurosystem, Element, Sale, Ecological economics, Sis, Civil service commission, FSI, European Commission, PPT, Gropp, Financial economics, NGFS, Table, Financial intermediary, Review of Economic Dynamics, LSI, Financial statement analysis, Prudential, DSGE, INSPIRE, CEP, Single, European Central Bank, Paper, RWA, Employment, Literature, Calibration, Medical classification, Network, Journal of Financial Stability, Financial regulation, Wildfire, Mask, Geography, Carbon, ADBI, E61, Research, ISSN, Policy, Climate, Coelho, G21, Environment, Section 2, Robustness, Constantine Dafermos, AnaCredit, Temperature, Acceleration, SSM, PDF, CST, Website, Data, Tax, Council, Section 4, Translation, Bank of England, CEIS, Exercise, Map, BCBS, European Parliament, Buffer, Double, NFC, Bank, Financial system, Growth, NACE, SHSS, Management science, EBA, Electricity, Risk management

Abstract

Key Points:

Abstract
Amid the growing financial vulnerabilities posed by climate change, we investigate macroprudential capital buffers to mitigate systemic risks and increase the resilience of the banking
sector.
Subsequently, we introduce a methodological framework for tailoring bank-specific buffer requirements to cover these losses, offering macroprudential authorities a practical method for
calibrating climate-related macroprudential capital buffers, complementing microprudential
policies.
The study demonstrates the potential of macroprudential capital buffers to mitigate potential climate-related losses and contributes to the
understanding of the appropriate prudential policy response to these challenges.
Second, we propose a calibration methodology for a macroprudential capital buffer which
allows to address the build-up of climate-related systemic risks in the banking sector.
The
proposed calibration methodology assigns different systemic risk buffer requirements to banks
in different buckets depending on each bank?s exposure to the estimated climate risks.
Our findings highlight the potential systemic relevance of climate
risks, while the proposed methodology demonstrates the potential of macroprudential capital
buffers to mitigate climate-related losses.
Overall, this paper makes a significant
step towards operationalizing macroprudential capital buffers for climate-related risks, and can
inform prudential authorities? reflections on how to concretly implement macroprudential tools
to address the build-up of these risks.
Yet, despite the growing consensus on the systemic features of climate risks,
the discussion on the concrete implementation of macroprudential tools for climate risk is only
incipient.
This paper explores how climate risks should be accounted for in the regulatory framework,
providing an analysis of how macroprudential capital buffers can be tailored to effectively address
the systemic aspects of these specific risks.
In Section 2, we discuss the current
policy context around macroprudential policy targeting climate-related systemic risk, as well as
the positioning of the paper in the existing academic literature.
As part of the discussion on incorporating climate-related risk considerations into the prudential framework, macroprudential tools, including capital buffers, are increasingly being considered to address systemic aspects of climate-related risks, complementing microprudential
measures.
Yet, no common methodology currently exists to calibrate such buffer, which may hinder
its actual use to address climate risks, should macroprudential authorities decide to use it.
Our paper also contributes to the policy discussion by tackling some of the challenges
which have been identified regarding the use of macroprudential tools for climate risks.
In
particular, ECB-ESRB (2022) identify the complex calibration as one of the hurdles to overcome
in order to implement a climate SyRB.
(2023) also estimate US banks? exposure to transition risk based on the carbon footprint of
their syndicated loan portfolio.
7
Similarly, earlier work by Campiglio (2016) suggests the use of green macroprudential policy in stimulating
banks to finance low carbon activities.
ECB Working Paper Series No 28xx
10

brown firms could actually even cause a reduction in lending to green firms via a crowding-out
effect.
We contribute to this literature by proposing a harmonized methodological framework,
based on a stress test methodology and granular supervisory data, to quantify a macroprudential capital buffer requirement to tackle climate-related risks in the euro area banking sector.
23
The extent to which the climate SyRB might overlap with other capital (buffer) requirements can also be
used to inform macroprudential authorities? decision on the optimal calibration factor, as discussed in Section 3.3
and 4.3.
The proposed
bucketing methodology also provides macroprudential authorities with sufficient flexibility to
tailor the framework to the particularities of each jurisdiction (EBA, 2020).
Finally, when implementing a bucketing approach, macroprudential authorities need to be
mindful that such approaches have the potential to cause cliff effects.
Hence, a
bucketing approach translating bank-specific projected transition risk losses into capital addons appears to be both more prudent and more efficient.
Assuming
financial institutions do not hold additional provisions beyond the current policies scenario,
transition risk losses will directly affect their capital positions.
We define the excess CET1 ratio
as the bank?s CET1 ratio minus the sum of all capital and buffer requirements (including P2G).
The SyRB is therefore able to
almost fully offset the impact of a transition shock on capital positions at the system-wide level.
31
Assuming banks preserve their capital buffer in response to this increase in capital requirements.
As an example, macroprudential authorities? assessment of the potential overlap of
the climate SyRB with other capital (buffer) requirements may be helpful in this discussion.
The scenario
used for calibration of a macroprudential capital buffer like the SyRB will need to be chosen
carefully to correctly identify realistic sources of systemic risk, including the potential interaction
between transition risk and physical risk.
Fourth, concrete implementation would need to ensure that macroprudential capital buffers are
not targeting climate-related risks already covered by other microprudential or macroprudential
capital (buffer) requirements, to avoid any overlap of requirements and double-counting of risks.

GMCI joins WOO Innovation Hub to back Web3 high-growth sectors in Q2

Retrieved on:

fredag, maj 24, 2024

Bitcoin, Partnership, Decentralized finance, RWA, WOO, Nifedipine, Ecosystem, Risk, MEME, Artificial intelligence, BTC, Research, Innovation Hub, DEX, Cryptocurrency

“Our strategy to back high-growth sectors will be facilitated through our WOO Innovation Hub, allowing for expanded coverage and assertive support of promising protocols in the identified growth areas.

Key Points:

“Our strategy to back high-growth sectors will be facilitated through our WOO Innovation Hub, allowing for expanded coverage and assertive support of promising protocols in the identified growth areas.
Our collaboration with GMCI through the WOO Innovation Hub will offer our users expedited access to GMCI's indices and research.
Together, WOO and GMCI aim to enhance market insights for traders while driving industry innovation,” said Maarten Botman CEO of GMCI.
GMCI joins Merlin Chain to support projects under the WOO Innovation Hub.

Serenity Shield Launches Global DePIN Network To Transform Data Storage

Retrieved on:

måndag, maj 20, 2024

Serenity, Hydrogen, Green hydrogen, RWA, Web 3.0, Nifedipine, Privacy, Ecosystem, Architecture, Web 2.0, Cryptocurrency

New Delhi, India, May 20, 2024 (GLOBE NEWSWIRE) -- Serenity Shield, a fully decentralized multi-chain data storage solution, today announces the launch of its inaugural decentralized storage facility in Muscat, Oman.

Key Points:

New Delhi, India, May 20, 2024 (GLOBE NEWSWIRE) -- Serenity Shield, a fully decentralized multi-chain data storage solution, today announces the launch of its inaugural decentralized storage facility in Muscat, Oman.
As further access points activate over the coming months, the operation promises to liberate individuals and corporations from their current dependence on centralised cloud services for data storage.
With this robust infrastructure, Serenity Shield will allow individuals, businesses and government institutions to access a completely new form of data storage that gives redundancy, security and decentralisation by design.
The vast array of global data centers will help to mitigate the centralised risks that currently threaten the widespread adoption of blockchain technology.

re.al Launches First Modular RWA L2, Gives Back 100% of Its Revenue to Users, Powered by Arbitrum Orbit

Retrieved on:

måndag, maj 20, 2024

Powered by Arbitrum Orbit and built on Gelato Rollup-as-a-Service (RaaS) Platform, re.al’s new permissionless Layer 2 establishes itself the optimal RWA chain in DeFi, solving the challenges of liquidity, interoperability, and composability of traditional assets on-chain.

Key Points:

Powered by Arbitrum Orbit and built on Gelato Rollup-as-a-Service (RaaS) Platform, re.al’s new permissionless Layer 2 establishes itself the optimal RWA chain in DeFi, solving the challenges of liquidity, interoperability, and composability of traditional assets on-chain.
This positions re.al as the top platform for asset issuers to easily launch RWA projects and for investors to efficiently access capital.
"
re.al merges Arbitrum cutting-edge Layer 2 tech with Web3 Services, baked in the chain layer," says Hilmar Orth, Founder of Gelato.
The launch of re.al marks a significant step forward for on-chain RWAs, breaking barriers that have previously hindered tokenization adoption.

The Hashgraph Association and Hylobiz - a Vayana subsidiary - launch debt-based financial products on Hedera DLT network

Retrieved on:

torsdag, maj 9, 2024

THA, Ecosystem, Blockchain, RWA, Partnership, Software as a service, VDP, B2B, Developed country, Movement, ETP, Luigi, Hedera, Growth, Cryptocurrency

HYDERABAD, India, May 9, 2024 /PRNewswire/ -- The Hashgraph Association (THA), the Swiss-based organization at the forefront of global digital enablement, has partnered with Hylobiz, a Vayana group company, for the launch of decentralized debt-based financial products built on the Hedera DLT network. Leveraging Hedera's decentralized, open-source public ledger, Hylobiz's software as a service (SaaS) B2B lending platform enables easier access to affordable financing for small and medium-sized businesses (SMBs) globally.

Key Points:

Hylobiz's B2B lending platform tech built upon Hedera's decentralized network focused on enabling streamlined digital access to low-cost financing for SMBs globally.
HYDERABAD, India, May 9, 2024 /PRNewswire/ -- The Hashgraph Association (THA) , the Swiss-based organization at the forefront of global digital enablement, has partnered with Hylobiz, a Vayana group company, for the launch of decentralized debt-based financial products built on the Hedera DLT network.
Leveraging Hedera's decentralized, open-source public ledger, Hylobiz's software as a service (SaaS) B2B lending platform enables easier access to affordable financing for small and medium-sized businesses (SMBs) globally.
Kamal Youssefi, President of The Hashgraph Association, stated, "We share the same vision of Hylobiz and Vayana in creating an ecosystem where digital finance is embedded in a transaction invisibly, securely, and transparently.

The Hashgraph Association and Hylobiz - a Vayana subsidiary - launch debt-based financial products on Hedera DLT network

Retrieved on:

torsdag, maj 9, 2024

THA, Ecosystem, Blockchain, RWA, Partnership, Software as a service, VDP, B2B, Developed country, Movement, ETP, Luigi, Hedera, Growth, Cryptocurrency

HYDERABAD, India , May 9, 2024 /PRNewswire/ -- The Hashgraph Association (THA), the Swiss-based organization at the forefront of global digital enablement, has partnered with Hylobiz, a Vayana group company, for the launch of decentralized debt-based financial products built on the Hedera DLT network. Leveraging Hedera's decentralized, open-source public ledger, Hylobiz's software as a service (SaaS) B2B lending platform enables easier access to affordable financing for small and medium-sized businesses (SMBs) globally.

Key Points:

Hylobiz's B2B lending platform tech built upon Hedera's decentralized network focused on enabling streamlined digital access to low-cost financing for SMBs globally.
HYDERABAD, India , May 9, 2024 /PRNewswire/ -- The Hashgraph Association (THA) , the Swiss-based organization at the forefront of global digital enablement, has partnered with Hylobiz, a Vayana group company, for the launch of decentralized debt-based financial products built on the Hedera DLT network.
Leveraging Hedera's decentralized, open-source public ledger, Hylobiz's software as a service (SaaS) B2B lending platform enables easier access to affordable financing for small and medium-sized businesses (SMBs) globally.
Kamal Youssefi, President of The Hashgraph Association, stated, "We share the same vision of Hylobiz and Vayana in creating an ecosystem where digital finance is embedded in a transaction invisibly, securely, and transparently.

Oxbridge Re Holdings Limited Reports First Quarter 2024 Results

Retrieved on:

torsdag, maj 9, 2024

Investment, Policy, Hurricane Ian, RWA, Web3, Madhu, Securitization, Acquisition, Telephone, Insurance

“We were pleased with our core operational performance in the first quarter of 2024 in our Web-3 and reinsurance tokenization business," commented Oxbridge Re Holdings Chairman and Chief Executive Officer Jay Madhu.

Key Points:

“We were pleased with our core operational performance in the first quarter of 2024 in our Web-3 and reinsurance tokenization business," commented Oxbridge Re Holdings Chairman and Chief Executive Officer Jay Madhu.
Net premiums earned for the three months ended March 31, 2024 increased to $549,000 from $0 in the prior year’s first quarter .
The increase is due to higher general administrative expenses incurred during the first quarter of 2024.
The increase is due to higher expenses incurred during the first quarter of 2024 when compared with the prior period.