Here is the outline for this week’s newsletter! Don’t miss out on what is going on this week!🔥

• Chainlink, Swift complete tokenisation tests😍

• Binance to remove support of BUSD 📉

• FED Inflation edged higher in July 🏦

Chainlink, Swift complete tokenisation tests😍

In a groundbreaking collaboration, Swift, Chainlink, and 10 major banks have successfully completed tokenization tests to explore the movement of financial assets across traditional rails and blockchain networks.

The tests involved partnering with renowned financial institutions such as Citi Bank, BNP Paribas, and BNY Mellon. Swift, a leading interbank messaging service, utilized Chainlink's oracle provider to establish a connection with Sepolia, a popular Ethereum testnet.

With just over a month since the launch of their Cross-Chain Interoperability Protocol (CCIP), Swift and Chainlink were able to send tokenized assets between the Ethereum testnet and other blockchains.

This process of linking traditional financial assets with blockchain networks is known as tokenization.

Tokenization has gained significant traction recently, with influential figures like BlackRock CEO Larry Fink referring to it as the "next generation of markets." To support this growing trend, CCIP initially included support for four blockchains:

• Avalanche

• Ethereum

• Optimism

• Polygon

Furthermore, DeFi lending protocols Aave and Synthetix have also adopted CCIP.

The objective behind these tests was to establish a secure and fast connection between traditional finance systems and multiple public and private blockchains for seamless asset transfer. Sergey Nazarov, co-founder of Chainlink emphasized that adoption would occur across multiple blockchain technologies simultaneously in a multichain ecosystem.

This successful collaboration has demonstrated that even large banks can achieve this new level of interoperability with minimal resources using Swift infrastructure. Tom Zschach, Chief Innovation Officer at Swift stated that these experiments showcased how their infrastructure can provide central connectivity for different blockchains in order to foster tokenization development.

Binance to remove support of BUSD 📉

As you may know, Paxos recently made the decision to halt the minting of new BUSD, and now Binance is following suit by gradually ending its support for the stablecoin.

In an announcement made on Thursday, Binance stated that it will be removing BUSD from spot and margin trading pairs. Users are advised to convert their BUSD into other assets by February of next year.

Additionally, Binance will be delisting BUSD as a loanable asset on September 6th and will cease withdrawals of Binance-peg BUSD tokens via various chains on September 7th.

This move to end support for BUSD has been anticipated since Paxos received an order in February to stop minting the coin. At that time, the CEO of Binance, Changpeng Zhao, stated that "BUSD will slowly wind down over time." However, the exact timeline was unclear until now.

It is important to note that despite this decision, Binance assures users that BUSD will always be backed 1:1 by USD. As of now, BUSD maintains a 24-hour trading volume of just under $900 million according to CoinMarketCap data.

This announcement comes amidst regulatory clashes surrounding stablecoins. Earlier this year, Paxos faced regulatory scrutiny from the New York Department of Financial Services (NYDFS), which ordered them to stop issuing BUSD. In addition to this latest development with Binance and Paxos' halt in minting new coins causing them legal troubles with U.S. regulators such as Commodity and Futures Trading Commission (CFTC) who have sued them for allegedly offering unregistered crypto derivatives products against federal law.

FED Inflation edged higher in July 🏦

The Personal Consumption Expenditures (PCE) Index excluding the cost of food and energy, also known as "core" PCE, rose 4.2% over the prior year in July. This is in line with economist expectations and represents an increase from 4.1% in June. On a headline basis, which includes all categories, PCE inflation rose 3.3% year over year in July.

These numbers indicate that inflationary pressures are still present within the economy. However, despite this increase, it is worth noting that inflationary pressures have eased compared to previous months.

Federal Reserve Chairman Jerome Powell recently addressed this issue at the Jackson Hole Economic Symposium and emphasized that inflation remains too high and needs to be brought down to their target of 2%. The Federal Reserve is committed to taking action to achieve this goal.

Interest rates are currently at a range of 5.25% to 5.50%, which is the highest level since March 2001. Powell warned investors of a "higher for longer" period when it comes to interest rates if necessary.

✨Bonus News✨

Disclaimer: This is not any kind of financial advise. This newsletter is solely informational; it does not constitute investment advice, a solicitation to buy or sell any securities, or a recommendation regarding how to manage your money. Be cautious and conduct your own study, please.