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Digital currency: Payment messaging is ‘done’ says Citi exec
April 02, 2023
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A panel at today’s Citi Digital Money Symposium explored the Regulated Liability Network (RLN), a big idea in which central bank money could coexist on the same shared network as bank deposit tokens and possibly regulated stablecoins. While the RLN is not an exclusively Citi project, it was conceived by Citi’s Tony McLaughlin. At today’s event, he observed that the dawn of digital currency means that ‘messaging is done’ when it comes to payments.

McLaughlin started by clarifying that today’s payments involve messaging and settlement. He observed that people often incorrectly blame SWIFT for slow cross border payments, but it is rarely SWIFT’s fault. SWIFT is purely a messaging system with banks doing the settlement, and the delays relate to the settlement, not the messaging. The Regulated Liability Network is quite different because it aims to be a settlement layer. 

“The blockchain community would have you believe that when a transaction takes place on a blockchain, settlement has been achieved. It has not been achieved,” said McLaughlin. “Because settlement is a legal construct, it’s not a technological construct.” To address DvP (delivery versus payment) and enable the settlement of tokenized securities, you need a construct that can achieve settlement and supports multiple currencies and assets. “That’s an infrastructure that does not currently exist today,” he added.

 

“The next step, I think, is to conceive of infrastructures potentially using shared ledger technology that solves for settlement because, frankly, messaging is done,” said McLaughlin.

SWIFT is part of the Regulated Liability Network

Next to him was sitting SWIFT’s Head of Innovation, Nick Kerigan. Messaging network SWIFT is an important partner in the RLN and is one of the participants in the RLN trials with the New York Federal Reserve

Last year SWIFT unveiled a CBDC interoperability trial that heavily used messaging, and we argued that the objective of next generation money is to merge the message and the settlement. However, we were harsh. SWIFT’s goal is not purely to enable interoperability with new forms of money but also with existing payment systems that will coexist for many years to come. As the current monetary system works on messaging, interoperability requires messaging. For now.

There’s an argument that SWIFT might be the most natural operator of the RLN (our observation, not the panel’s), barring its affinity for messaging. However, through no fault of its own, the use of SWIFT as a sanctions tool puts it at a disadvantage for a global network. Sanctions are one of the drivers behind China’s involvement in the MBridge DLT network for cross border payments.

Circling back to the Citi event, Kerigan responded to McLaughlin’s statement by observing that given the relative efficiency of messaging, “the settlement part of it is the bit that needs to be as fast, efficient and 24/7 as the messaging piece.” 

Kerigan continued, “That’s why we’re keen to collaborate on the RLN. Could you have a setup that is end-to-end, moving at speed and does that equally on a Sunday night as it does on a Wednesday during the day?”

Mastercard’s Martin Etheridge added that payments are more than purely settlement. Referring to functions such as AML, consumer protections and network onboarding standards, he said that settlement is “just one part of that payment experience.” Mastercard is also part of the RLN tests with the New York Federal Reserve.

Etheridge noted that the RLN collaboration between partners “is because we all have a different perspective about how you actually make payments work for customers.”

That is a valid observation. But the race for the future of money is well underway, so time is not on RLN’s side. When McLaughlin first unveiled the RLN concept 18 months ago, he referred to “the digital money format war“. The challenge is how to move sufficiently quickly to have a place on the battlefield while balancing the different perspectives of many participants.

Footnote: Two comments hinted that it is not certain that the RLN will use blockchain. McLaughlin referred to ‘potentially’ using shared ledger technology. And Mastercard’s Etheridge made a comment that the business case should be decided first then the tech, not the other way around. Currently the tech partners are blockchain firms SETL and Digital Asset, although Digital Asset’s DAML also works with centralized databases.

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Brad Garlinghouse In Washington 🚀

It’s time for a fair and open level playing field.

Under Gary Gensler it was quite the opposite.

  • Brad Garlinghouse
    July 9, 2025
00:01:56
More Of The Same...l

🚨 JUST IN: Patriot Tom Fitton, who has been fighting DOJ and FBI to release documents for years, has practically thrown in the towel.

👉 "The justice department and the FBI are irredeemably compromised and corrupted.
The leadership needs to understand that and act accordingly." ~Tom Fitton

00:01:30
Christine Lagarde just gave Ripple & Circle A Shoutout!
00:00:44
👉 Coinbase just launched an AI agent for Crypto Trading

Custom AI assistants that print money in your sleep? 🔜

The future of Crypto x AI is about to go crazy.

👉 Here’s what you need to know:

💠 'Based Agent' enables creation of custom AI agents
💠 Users set up personalized agents in < 3 minutes
💠 Equipped w/ crypto wallet and on-chain functions
💠 Capable of completing trades, swaps, and staking
💠 Integrates with Coinbase’s SDK, OpenAI, & Replit

👉 What this means for the future of Crypto:

1. Open Access: Democratized access to advanced trading
2. Automated Txns: Complex trades + streamlined on-chain activity
3. AI Dominance: Est ~80% of crypto 👉txns done by AI agents by 2025

🚨 I personally wouldn't bet against Brian Armstrong and Jesse Pollak.

👉 Coinbase just launched an AI agent for Crypto Trading

same for: https://coinmarketcap.com/community/articles/686e68f5d405956445e039ff/

🚨 Ripple Picks BNY Mellon to Back RLUSD Stablecoin Amid Major Surge 🚨

Ripple has selected BNY Mellon, one of the world’s largest and most trusted financial institutions, to serve as the primary custodian for its RLUSD stablecoin. This decision comes as RLUSD experiences a surge in demand, highlighting growing institutional interest in Ripple’s stablecoin offering.

🔹 Institutional Partnership

🔹 BNY Mellon will safeguard the reserves backing RLUSD, ensuring transparency, security, and regulatory compliance for the stablecoin.

🔹 This partnership is designed to build trust with both institutional and retail users by leveraging BNY Mellon’s expertise in asset custody.

🔹 RLUSD’s Rapid Growth

🔹 RLUSD has seen a significant increase in adoption, reflecting confidence in Ripple’s approach to stablecoins and its commitment to compliance and transparency.

🔹 The collaboration with BNY ...

From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets

COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS will meet in OPEN SESSION, HYBRID FORMAT to conduct a hearing entitled, “From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets.” The witnesses will be: The Honorable Summer Mersinger, CEO, Blockchain Association; Mr. Jonathan Levin, CEO, Chainalysis; Mr. Dan Robinson, General Partner, Paradigm; Mr. Brad Garlinghouse, CEO, Ripple; The Honorable Timothy Massad, Research Fellow and Director of Digital Assets Policy Project of the Mossavar-Rahmani Center for Business and Government, Kennedy School of Government at Harvard University, former CFTC Chairman; and Mr. Richard Painter, S. Walter Richey Professor of Corporate Law, University of Minnesota Law School, former Associate Counsel to the President and chief White House ethics lawyer.

https://www.banking.senate.gov/hearings/from-wall-street-to-web3-building-tomorrows-digital-asset-markets

‼️XRP ETF INFOGRAPHIC REVEALS AMERICAN EXPRESS UTILIZES XRP‼️

“A well-known company that uses XRP is American Express, which leverages RippleNet to enable realtime cross-border payments for corporate clients.

Through its partnership with Ripple, American Express uses XRP indirectlyvia Ripple's infrastructure to facilitate faster and more transparent transactions between the U.S. and international markets, helping businesses move money efficiently and reduce settlement times from days to seconds.”✅

OP: Smqkedqg

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Musk Turns On Starlink to Save Iranians from Regime’s Internet Crackdown

Elon Musk, the world’s richest man and a visionary behind SpaceX, has flipped the switch on Starlink, delivering internet to Iranians amid a brutal regime crackdown.

This move comes on the heels of Israeli strikes targeting Iran’s nuclear facilities, as the Islamic Republic cuts off online access.

The former Department of Government Efficiency chief activated Starlink satellite internet service for Iranians on Saturday following the Islamic Republic's decision to impose nationwide internet restrictions.

As the Jerusalem Post reports, that the Islamic Republic’s Communications Ministry announced the move, stating, "In view of the special conditions of the country, temporary restrictions have been imposed on the country’s internet."

This action followed a series of Israeli attacks on Iranian targets.

Starlink, a SpaceX-developed satellite constellation, provides high-speed internet to regions with limited connectivity, such as remote areas or conflict zones.

Elizabeth MacDonald, a Fox News contributor, highlighted its impact, noting, "Elon Musk turning on Starlink for Iran in 2022 was a game changer. Starlink connects directly to SpaceX satellites, bypassing Iran’s ground infrastructure. That means even during government-imposed shutdowns or censorship, users can still get online, and reportedly more than 100,000 inside Iran are doing that."

During the 2022 "Woman, Life, Freedom" protests, Starlink enabled Iranians to communicate and share footage globally despite network blackouts," she added.

MacDonald also mentioned ongoing tests of "direct-to-cell" capabilities, which could allow smartphone connections without a dish, potentially expanding access and supporting free expression and protest coordination.

Musk confirmed the activation, noting on Saturday, "The beams are on."

This follows the regime’s internet shutdowns, which were triggered by Israeli military actions.

Adding to the tension, Israeli Prime Minister Benjamin Netanyahu addressed the Iranian people on Friday, urging resistance against the regime.

"Israel's fight is not against the Iranian people. Our fight is against the murderous Islamic regime that oppresses and impoverishes you,” he said.

Meanwhile, Reza Pahlavi, the exiled son of Iran’s last monarch, called on military and security forces to abandon the regime, accusing Supreme Leader Ayatollah Ali Khamenei in a Persian-language social media post of forcing Iranians into an unwanted war.

Starlink has been a beacon in other crises. Beyond Iran, Musk has leveraged Starlink to assist people during natural disasters and conflicts.

In the wake of hurricanes and earthquakes, Starlink has provided critical internet access to affected communities, enabling emergency communications and coordination.

Similarly, during the Ukraine-Russia conflict, Musk activated Starlink to support Ukrainian forces and civilians, ensuring they could maintain contact and access vital information under dire circumstances.

The genius entrepreneur, is throwing a lifeline to the oppressed in Iran, and the libs can’t stand it.

Conservative talk show host Mark Levin praised Musk’s action, reposting a message stating that Starlink would "reconnect the Iranian people with the internet and put the final nail in the coffin of the Iranian regime."

"God bless you, Elon. The Starlink beams are on in Iran!" Levin wrote.

Musk, who recently stepped down from leading the DOGE in the Trump administration, has apologized to President Trump for past criticisms, including his stance on the One Big Beautiful Bill.

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GENIUS Act lets State banks conduct some business nationwide. Regulators object

The Senate passed the GENIUS Act for stablecoins last week, but significant work remains before it becomes law. The House has a different bill, the STABLE Act, with notable differences that must be reconciled. State banking regulators have raised strong objections to a provision in the GENIUS Act that would allow state banks to operate nationwide without authorization from host states or a federal regulator.

The controversial clause permits a state bank with a regulated stablecoin subsidiary to provide money transmitter and custodial services in any other state. While host states can impose consumer protection laws, they cannot require the usual authorization and oversight typically needed for out-of-state banking operations.

The Conference of State Bank Supervisors welcomed some changes in the GENIUS Act but remains adamantly opposed to this particular provision. In a statement, CSBS said:

“Critical changes must be made during House consideration of the legislation to prevent unintended consequences and further mitigate financial stability risks. CSBS remains concerned with the dramatic and unsupported expansion of the authority of uninsured banks to conduct money transmission or custody activities nationwide without the approval or oversight of host state supervisors (Sec. 16(d)).”

The National Conference of State Legislatures expressed similar concerns in early June, stating:

“We urge you to oppose Section 16(d) and support state authority to regulate financial services in a manner that reflects local conditions, priorities and risk tolerances. Preserving the dual banking system and respecting state autonomy is essential to the safety, soundness and diversity of our nation’s financial sector.”

Evolution of nationwide authorization

Section 16 addresses several issues beyond stablecoins, including preventing a recurrence of the SEC’s SAB 121, which forced crypto assets held in custody onto balance sheets. However, the nationwide authorization subsection was added after the legislation cleared the Senate Banking Committee, with two significant modifications since then.

Originally, the provision applied only to special bank charters like Wyoming’s Special Purpose Depository Institutions or Connecticut’s Innovation Banks. Examples include crypto-focused Custodia Bank and crypto exchange Kraken in Wyoming, plus traditional finance player Fnality US in Connecticut. Recently the scope was expanded to cover most state chartered banks with stablecoin subsidiaries, possibly due to concerns about competitive advantages.

Simultaneously, the clause was substantially tightened. The initial version allowed state chartered banks to provide money transmission and custody services nationwide for any type of asset, which would include cryptocurrencies. Now these activities can only be conducted by the stablecoin subsidiary, and while Section 16(d) doesn’t explicitly limit services to stablecoins, the GENIUS Act currently restricts issuers to stablecoin related activities.

However, the House STABLE Act takes a more permissive approach, allowing regulators to decide which non-stablecoin activities are permitted. If the House version prevails in reconciliation, it could result in a significant expansion of allowed nationwide banking activities beyond stablecoins.

Is it that bad?

As originally drafted, the clause seemed overly permissive.

The amended clause makes sense for stablecoin issuers. They want to have a single regulator and be able to provide the stablecoin services throughout the United States. But it also leans into the perception outside of crypto that this is just another form of regulatory arbitrage.

The controversy over Section 16(d) reflects concerns about creating a regulatory gap that allows banks to operate interstate without the oversight typically required from either federal or state authorities. As the two Congressional chambers work toward reconciliation, lawmakers must decide whether stablecoin legislation should include provisions that effectively reduce traditional banking oversight requirements.

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If you find value in my content, consider showing your support via:

💳 PayPal: 
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Dubai regulator VARA classifies RWA issuance as licensed activity
Virtual Asset Regulatory Authority (VARA) leads global regulatory framework - makes RWA issuance licensed activity in Dubai.

Real-world assets (RWAs) issuance is now licensed activity in Dubai.

~ Actual law.
~ Not a legal gray zone.
~ Not a whitepaper fantasy.

RWA issuance and listing on secondary markets is defined under binding crypto regulation.

It’s execution by Dubai.

Irina Heaver explained:

“RWA issuance is no longer theoretical. It’s now a regulatory reality.”

VARA defined:

- RWAs are classified as Asset-Referenced Virtual Assets (ARVAs)

- Secondary market trading is permitted under VARA license

- Issuers need capital, audits, and legal disclosures

- Regulated broker-dealers and exchanges can now onboard and trade them

This closes the gap that killed STOs in 2018.

No more tokenization without venues.
No more assets without liquidity.

UAE is doing what Switzerland, Singapore, and Europe still haven’t:

Creating enforceable frameworks for RWA tokenization that actually work.

Matthew White, CEO of VARA, said it perfectly:

“Tokenization will redefine global finance in 2025.”

He’s not exaggerating.

$500B+ market predicted next year.

And the UAE just gave it legal rails.

~Real estate.
~Private credit.
~Shariah-compliant products.

Everything is in play.

This is how you turn hype into infrastructure.

What Dubai is doing now is 3 years ahead of everyone else.

Founders, investors, ecosystem builders:

You want to build real-world assets onchain.

Don’t waste another year waiting for clarity.

Come to Dubai.

It’s already here.

 

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If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) or visit https://www.paypal.me/thedinarian

🔗 Crypto – Support via Coinbase Wallet to: [email protected]

Or Buy me a coffee: https://buymeacoffee.com/thedinarian

Your generosity keeps this mission alive, for all! Namasté 🙏 Crypto Michael ⚡  The Dinarian

 

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