Blockchain
GFMA, IIF push back on Basel bank treatment of permissionless blockchain
Last week, the Basel Committee on Banking Supervision (BCBS) closed its December consultation regarding updates to its crypto-asset rules. Five major industry bodies responded, pushing back on the Committee’s plans to treat any permissionless blockchain tokens, including tokenized securities, as equivalent to high-risk cryptocurrencies (group 2). For assets classified in Group 2, banks must set aside significant capital, often a dollar for every dollar of crypto.
Group 1 assets include tokenized traditional securities and eligible stablecoins.
The associations responding include the Global Financial Markets Association (GFMA), the Futures Industry Association (FIA), the Institute of International Finance (IIF), the International Swaps and Derivatives Association (ISDA) and the Financial Services Forum.
Permissionless blockchains
“We note the BCBS’s conclusion that the use of permissionless blockchains gives rise to a number of unique risks, some of which cannot be sufficiently mitigated at present. We respectfully disagree with that conclusion,” the response states.
“The principle should be that, where risks can be managed, the use of public permissionless blockchains to develop tokenized assets should be allowed in order to improve efficiency.”
Hence, they argue that banks are capable of managing the risks. Smart contracts can include the ability to seize, freeze or burn tokens. Additionally, the terms and conditions of a token could give the tokenization agent the right to remove the token from the ledger and issue it in a traditional manner.
They provided an analogy between permissionless blockchains and the internet, where the foundational network is permissionless, but the applications on top of it are often gated or require permission.
“The exclusion of permissionless public networks may impact the wider development of liquid tokenization markets not least due to the potential lack of interoperability between private blockchains,” the Associations said.
They further argued the importance of not disincentivizing banks from participating because it would drive activity towards non-bank financial institutions and shadow banking. In turn, this increases systemic risks.
The associations consider the Basel treatment of permissionless blockchain contrary to technology neutrality and the principle of “same asset, same risk”.
Infrastructure risk add-on
Early Basel Committee proposals planned an infrastructure risk add-on of 2.5% applied to tokenized traditional assets. However, Basel dropped this in the final crypto rules. December’s proposed changes suggested reintroducing it but at a 0% level. Local regulators would have the option of increasing the figure.
The industry associations want to see all references to the infrastructure risk add-on removed.
Failing that, they suggest adopting a proposal of the Hong Kong Monetary Authority (HKMA) as a fallback. It too sets the risk add-on at 0%. Instead of imposing a blanket percentage across the industry, the associations suggest individual treatment. In other words, authorities would only impost the add-on if they identify a specific internal infrastructure risk at a bank.
Settlement finality
In the proposals from Basel last December, there was a clarification that settlement finality should apply to both secondary markets and the issuance of assets. However, the associations have requested that this regulation not be enforced rigidly.
Instead, they point to the evolving legal landscape on this topic. For example, with the changes in the United States Uniform Commercial Code (UCC) and England’s Law Commission review.
Instead, they suggest that a bank should ensure it understands how and when a transaction reaches finality. Additionally, the bank should conduct a legal review. They argue that the foreign exchange market takes a similar approach.
As an aside, the associations note that DLT helps reduce settlement risks.
Stablecoin issues
The industry response covers several stablecoin issues. Firstly, they are concerned about some changes that they believe prevent a bank stablecoin reserve custodian from providing any type of bank account. That’s because of an insistence on the bankruptcy remoteness of all reserves. The associations request the exclusion of cash assets from this requirement.
Still on reserves, they request permission to use reverse repo agreements. Most major stablecoin issuers use them.
Next, they request that stablecoins be allowed to be used as collateral.
Overall, they note that the Basel stablecoin requirements are more onerous than current legislation and frameworks published by the UK, EU, Singapore, Dubai and Hong Kong.
“BCBS’s amendments should not have the effect of preventing banks from exercising rights that have already been enshrined in existing regulatory and legal frameworks,” they wrote.
Additionally, they point to an inconsistency in that banks with e-money licenses are subject to far more stringent requirements for tokenized e-money.
Source: ledgerinsights.com
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Blockchain
Blocks & Headlines: Today in Blockchain – April 25, 2025 | BitNile, Dutch Blockchain Week, Citigroup, Philippine Blockchain Week, D.O.G.E Foundation
Blockchain’s metamorphosis from niche ledger technology to the backbone of Web3 has never been more evident. Today, we cover five stories that illustrate the evolving ecosystem: a gaming platform issuing its own token on Solana; Europe’s marquee Web3 summit; a major bank forecasting a “ChatGPT moment” for blockchain; a Southeast Asian conference aimed at busting crypto myths; and a foundation rebuilding blockchain from the ground up to solve scalability. Each development—whether product launch, industry gathering, macro forecast, educational initiative, or infrastructure innovation—offers a window into the trends shaping decentralized finance, NFTs, DeFi, and beyond.
1. BitNile.com to Launch Nile Coin on Solana
News Summary
Hyperscale Data’s subsidiary BitNile.com will introduce the Nile Coin on Solana starting May 1, 2025. The U.S.–based social gaming site chose Solana for its high throughput and low fees, aiming to enhance in-game economies, reward engagement, and deliver seamless micro-transactions. Details on tokenomics and governance are forthcoming, but management touts Nile Coin as a cornerstone of future gaming experiences.
Source: CoinTrus
Analysis & Commentary
Launching a proprietary token underscores two converging trends: the gamification of finance and finance-ification of gaming. By minting Nile Coin, BitNile.com taps into DeFi mechanics—staking, liquidity pools, NFT rewards—while leveraging Solana’s scalability. Strategically, BitNile.com positions itself for partnerships with NFT marketplaces and DeFi protocols, potentially opening secondary markets for in-game assets and generating new revenue streams beyond ad sales or subscription fees.
2. Dutch Blockchain Week 2025 Gears Up in Amsterdam
News Summary
From May 19–25, Amsterdam will host the sixth annual Dutch Blockchain Week, culminating in the two-day summit (May 21–22) at De Meervaart. Tier 1 exchanges (Bitvavo, Kraken, Coinbase), Web3 pioneers (WOW.ai, Blockrise), regulators (European Commission, De Nederlandsche Bank), and industry partners (Mastercard, Deloitte) will convene. Side events range from AI-powered hackathons tackling compliance to padel networking meetups—underscoring the event’s blend of technology, policy, and community.
Source: Dutch Blockchain Week
Analysis & Commentary
Dutch Blockchain Week typifies the maturation of blockchain conferences into multidisciplinary forums. Beyond token talk and yield farming, panels on regulation, institutional adoption, and security reflect Web3’s integration into mainstream finance. Anticipate announcements on CBDC pilots, DeFi compliance frameworks, and cross-chain interoperability projects that may emerge from the Block & Order Hackathon.
3. Citigroup Predicts Blockchain’s “ChatGPT Moment”
News Summary
In an April 23 report, Citigroup analysts argue that 2025 could be blockchain’s “ChatGPT moment,” driven by regulatory clarity around stablecoins and integration with traditional financial systems. They forecast stablecoin market capitalization ballooning to $1.6 trillion (base case) or as much as $3.7 trillion (bull case) by 2030—anchored by dollar-denominated issuers and collateralized with U.S. Treasuries. Regulatory frameworks like the GENIUS Act could catalyze adoption among banks and fintechs.
Source: Cointelegraph
Analysis & Commentary
Drawing parallels to generative AI’s explosive growth, Citigroup envisions a tipping point where blockchain moves from experimental to essential infrastructure. Successful integration will hinge on robust compliance tools, auditability, and clear governance models. Enterprise blockchain vendors should prepare for surging demand in tokenized payments, on-chain settlements, and embedded DeFi rails within legacy systems.
4. Philippine Blockchain Week 2025 Debunks Crypto Myths
News Summary
Scheduled for June 10–11 at SMX Convention Center Manila, Philippine Blockchain Week (PBW) 2025 will tackle misinformation and spotlight real-world use cases. Highlights include “Crypto, Unpacked” sessions demystifying the technology; “Smart Regulation” panels uniting policymakers and innovators; and “Blockchain for Impact” showcases on remittances, disaster relief, and digital identity. Founding President Donald Lim emphasizes government support and public–private collaboration to spur inclusive growth.
Source: UseTheBitcoin
Analysis & Commentary
PBW exemplifies how emerging markets leverage education to accelerate Web3 adoption responsibly. By engaging regulators early, PBW can shape balanced frameworks that encourage innovation while protecting consumers—an instructive model for markets wrestling with both hype and skepticism.
5. D.O.G.E Foundation Launches New Blockchain, Opens Seed Round
News Summary
The D.O.G.E Foundation announced a ground-up blockchain rebuild designed to solve the scalability and reliability challenges plaguing existing networks. This modular architecture separates validation from execution to enable parallel transaction processing—targeting real-time gaming, DeFi under high load, and AI-driven applications. A seed funding round is now open to investors who share the vision of a performant, decentralized infrastructure.
Source: D.O.G.E Altcoin GlobeNewswire
Analysis & Commentary
As layer-1 congestion and high gas fees persist, new entrants must justify a “why now” with clear architectural advantages. If the D.O.G.E blockchain delivers real-world throughput and maintains decentralization, it could spur a renaissance of high-performance DeFi protocols and NFT platforms hungry for cost-effective base layers.
Conclusion & Key Takeaways
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Tokenization of Entertainment: BitNile’s Nile Coin on Solana highlights blockchain’s expansion into gaming economies and NFT reward systems.
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Convergence of Tech, Policy & Community: Dutch Blockchain Week showcases Web3’s evolution into an ecosystem engaging regulators, enterprises, and developers under one roof.
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Mainstream Inflection Point: Citigroup’s “ChatGPT moment” thesis suggests blockchain is poised for exponential adoption given regulatory support.
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Education as Catalyst: Philippine Blockchain Week’s myth-busting curriculum underscores the importance of public–private dialogue in emerging markets.
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Infrastructure Innovation: The D.O.G.E Foundation’s modular, high-throughput chain exemplifies the next wave of layer-1 networks addressing real-time, real-world use cases.
Today’s stories convey that blockchain’s next chapter will be written through strategic token launches, global convenings, regulatory clarity, educational outreach, and radical infrastructure redesign. By tracking these threads, industry participants can anticipate opportunities in DeFi, NFTs, Web3 games, and enterprise integration. Stay tuned for tomorrow’s Blocks & Headlines, where we’ll continue to decode the innovations shaping decentralized finance.
The post Blocks & Headlines: Today in Blockchain – April 25, 2025 | BitNile, Dutch Blockchain Week, Citigroup, Philippine Blockchain Week, D.O.G.E Foundation appeared first on News, Events, Advertising Options.
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