1. Austrian Government to Notarize $1.3 Billion Bond Auction Using Ethereum
The Austrian government is to use the ethereum blockchain to notarize the auction of a government bond worth €1.15 billion, or around $1.3 billion. The Federal Government’s Finance Agency (OeBFA) has assigned banking giant Oesterreichische Kontrollbank (OeKB) to carry out the auction on its behalf. The bank’s responsibilities will include deploying the notarization service to authenticate auction transaction data and subsequently store it on the blockchain, the agency explained. A news report indicated that OeKB has confirmed that it will use internal IT resources to oversee the deployment, which will utilize the ethereum blockchain to store the data as hash values on the public network. This is the Austrian government’s first move to adopt blockchain for domestic financial transactions, the OeBFA said, adding that it views the emerging technology as an “economic policy focus.”
2. US Judge Sides With CFTC in Fraud Case, Ruling Cryptos Are Commodities
A U.S. judge has sided with the Commodity and Futures Trading Commission (CFTC) in a lawsuit involving an allegedly fraudulent crypto investment scheme, ruling that the cryptocurrencies involved are commodities for the purpose of the case. The CFTC charged two individuals and a Las Vegas-based business called My Big Coin Pay over the alleged cryptocurrency-related scam back in January. Subsequently, the defendants filed a motion to dismiss the case on the grounds that the cryptos involved are not commodities and, as such, the CFTC has no jurisdiction over the case.
3. Chinese Banking Giant Issues $1.3 Billion in Securities on a Blockchain
Bank of Communications, one of the four state-owned commercial banks in China, has completed a major issuance of residential mortgage-backed securities (RMBSs) using a blockchain network. China Securities Times, the mouthpiece of Chinese financial regulators, reported on Thursday that the banking giant issued a total of 9.3 billion yuan (or around $1.3 billion) worth of RMBSs via its proprietary blockchain network, Jucai Chain. According to a document dated Sept. 27 that outlines details of the issuance, the Bank of Communications was the main issuer with China International Capital Corporation as lead underwriter and book runner for the offering. Other co-underwriters included the Industrial and Commercial Bank of China and China Merchants Bank. Other commercial banks in China have also recently announced various asset-backed security issuances via distributed networks.