banks

SWIFT service provider Bottomline announced a collaboration with the blockchain infrastructure project Chainlink to enable over 600 bank clients in its network to access blockchain-based cross-border settlements. Bottomline processes over $16 trillion in payments annually and serves 1,200 financial institutions and 10,000 enterprises.Through this integration, banks can continue to use the ISO 20022 standard to send payment instructions, with Chainlink's infrastructure connecting the instructions to blockchain settlements. Chainlink's Cross-Chain Interoperability Protocol (CCIP) supports the transfer of tokenized value across different blockchain networks, while Chainlink's Runtime Environment (CRE) is responsible for payment processes, transaction routing, and operational change coordination.CCIP has been recording mainnet activity since July 2023 and is currently connected to over 60 blockchain networks. Chainlink's Project Pangea has covered more than 50 banking institutions in Europe and South Korea, with participants managing assets totaling over $10 trillion, and the project's goals include achieving T+0 settlement for foreign exchange transactions.

The semiconductor and AI independent research organization SemiAnalysis released a deep security report on Neocloud (new cloud), revealing various cross-tenant security vulnerabilities discovered during the ClusterMAX 3 testing period. In a four-month test covering 25 vendors and 32 clusters, the team achieved multiple instances of cross-tenant remote code execution (RCE) solely by exploiting publicly known vulnerabilities and basic configuration checks. Affected entities included banks, telecommunications companies, universities, research institutions, AI laboratories, and even a national intelligence agency.Typical issues included: shared Kubernetes control plane leading to tenant metadata visibility, container escape, exposure of BMC/IPMI management networks, incorrect configuration of InfiniBand security keys (P_Key, SA_Key, M_Key), unfortified default trust mode of BlueField DPU, Grafana monitoring dashboards using god-level API keys, and lack of VXLAN isolation in front-end networks. The report specifically pointed out a cascading vulnerability case: a misconfiguration of shared vCluster combined with software versions being two years out of date ultimately completed the POC verification of cross-tenant RCE within an afternoon.Notably, the report questioned the mainstream narrative that "AI has fundamentally changed the pace of cybersecurity": statistics on CVEs for NVIDIA GPU drivers, CUDA, PyTorch, Kubernetes, Docker, and the Linux kernel showed that there was no significant increase in vulnerabilities after the popularization of AI coding models, with most data supporting the "no change hypothesis." The report also detailed the incident where an OpenAI-trained agent attacked Hugging Face, where the AI agent achieved cluster-level privilege escalation through a message board established via Artifactory, which went undetected from May to July. While building POC verification for existing vulnerabilities, the team found that Claude Fable and GPT-5.6 Sol frequently rejected security-related requests, ultimately relying on open-source models such as DeepSeek V4, Kimi K3, and GLM-5.2 to complete the task.SemiAnalysis stated that the core issue in the Neocloud (new cloud) industry is not the new risks brought by AI, but rather the long-term absence of basic patch management, tenant isolation, and security design. They recommended that vendors establish automated security announcement monitoring systems and rectify single points of failure that could expose all users' architectural patterns.

Vassilis Tziokas from Matter Labs pointed out in a CoinDesk article that the U.S. Senate has postponed the Clarity Act until September. This market structure bill failed to complete the final vote before the August recess, meaning that regulatory rules for the digital asset market will take weeks to be implemented. Meanwhile, banks are not waiting for regulation; JPMorgan has processed over $30 trillion in transactions through the Kinexys platform and launched the deposit token JPMD, while Citigroup operates cross-border Treasury token services. A clearinghouse, in collaboration with 17 major financial institutions, plans to achieve on-chain tokenized deposit clearing by 2027.The article argues that the interoperability of interbank tokenized deposits does not come from messaging standards or token bridges, but is realized through clearing mechanisms: the sending bank redeems tokens, the receiving bank issues its own tokens, inter-institutional obligations are recorded and netted, and ultimately settled in central bank currency. The engineering challenge lies in simultaneously satisfying privacy, neutrality, and verifiability; each institution must operate its own ledger, prove transfers through cryptography without exposing underlying data, and anchor to a neutral settlement facility owned by no participants.The author notes that the Clarity Act will not directly regulate tokenized deposits, but it can clarify the boundaries of the digital asset market and improve the stablecoin framework established by the GENIUS Act. The Global Financial Markets Association's report in April 2026 lists unresolved gaps such as unified processing of cross-border tokenized deposits and guidelines for off-network transfers, which are regulatory unlocking points for interbank tokenized fund interoperability. In the face of regulatory uncertainty, banks rationally choose to isolate, and each month of delay rewards closed gardens.

Researchers at the Federal Reserve Bank of Dallas, abbreviated as Dallas Fed, indicate that tokenized deposits and real-time blockchain transfers may weaken bank liquidity and limit their ability to issue long-term loans. The study was authored by Rosie Levy and Srini Ramaswamy.The research points out that of the $7 trillion in term risk borne by U.S. banks, approximately 80% is supported by the term characteristics of traditional deposits. If the weighted average term of deposits shortens by 10%, the banking system's term transformation capacity will decrease by about $580 billion, potentially increasing liquidity risk and pressure for fund outflows. Chris Turner, co-founder of Kula, stated that the speed of token transfers does not equate to the legal settlement of underlying financial claims. Tokens can be transferred through the blockchain network in seconds, but payments, ownership, and legal claims still rely on banks, custodians, clearing systems, and regulatory registries to complete the settlement.

According to CoinDesk, Dallas Federal Reserve economists Rosie Levy and Srini Ramaswamy estimate that if depositors' sensitivity to interest rates increases by 10%, tokenized deposits could reduce U.S. banks' ability to bear long-term interest rate risk by about $700 billion; if tokenization leads to a 10% early outflow of deposits, banks would lose about $580 billion in risk absorption capacity.Tokenized deposits place commercial bank money on the blockchain, supporting programmable payments and real-time settlement, but smart contracts and AI agents could automate deposit transfers, weakening deposit stickiness. Banks can respond by raising deposit rates, increasing reserves and government bonds, or relying more on term debt, but this could drive up credit costs for consumers and businesses.Research from Brazil's instant payment network Pix shows that more frequent use of the system increases banks' holdings of liquid assets like government bonds while reducing credit intermediation. Currently, tokenized deposits are still in the early stages, with clearinghouses and U.S. banks such as Bank of America, Citibank, and Wells Fargo developing interoperable networks that support interbank clearing, automated workflows, and 24/7 settlement.

The Federal Reserve discount rate meeting minutes show that 4 out of 12 regional Federal Reserve banks voted in July to support an increase in the discount rate.

According to the New York Times, the U.S. Securities and Exchange Commission has issued subpoenas to major Wall Street banks, requesting information regarding the artificial intelligence hedge fund Situational Awareness trading.

On August 24, recent news reported that some banks in Hong Kong have initiated a source of funds declaration procedure for certain existing mainland investment clients, setting deadlines of August 20 (services may be suspended if not submitted) and September 12 (services may be terminated if not submitted).Previously, in response to requirements from the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority, some banks have begun to require new mainland account investors to confirm that their source of funds comes from legitimate overseas channels. This source of funds confirmation procedure targets existing mainland investor accounts, primarily focusing on long-term "inactive accounts." It is understood that some licensed institutions in Hong Kong, including HSBC Hong Kong and branches of Chinese banks in Hong Kong, have indeed implemented such measures recently.

The Responsible Fintech Institute (RFI) and the cryptocurrency asset custody infrastructure provider Safeheron announced the launch of a pilot program for quantum-resistant digital asset wallets and on-chain transfers, with participants from Europe, the Middle East, and Asia. The pilot operates on the quantum-resistant NEAR testnet and uses a multiparty computation protocol that supports the ML-DSA-65 standard.Participating regulatory bodies include the Abu Dhabi Global Market, Bhutan's Gelephu Financial Services Office, and Malta's Financial Services Authority, with Bison Bank and DK Bank participating as financial institutions. The banks will test wallet generation and transfers in a shared application environment, while regulatory bodies will observe in the initial phase and later participate in governance workflows. The organizers plan to release a white paper covering research, protocol design, and testing results, and gradually open-source the underlying technology. The Hong Kong Monetary Authority plans to prepare the Hong Kong banking sector to fully address quantum security risks by 2030, while a report from the Bank for International Settlements published in 2025 suggests that financial institutions should migrate to quantum-resistant systems in phases.

According to CoinDesk, as Wall Street and global financial institutions accelerate their entry into the digital asset space, the boundaries between traditional finance (TradFi) and decentralized finance (DeFi) are gradually blurring. Bitwise CEO Hunter Horsley stated, "The era of 'going long on Bitcoin and shorting bankers' is over," as financial institutions are turning to the other side of the crypto industry, promoting the adoption of digital assets.Hunter Horsley mentioned that this summer, two financial institutions managing over $1 trillion in assets approved the launch of crypto products in a bear market environment, indicating that large institutions are expanding channels for clients to access digital assets. "This year, everyone is wearing the crypto industry's jersey. Now, everyone is working for the crypto industry," Horsley said. He pointed out that these financial institutions, which manage over a trillion dollars in client assets, previously would not have opened related services during the downturn of the crypto market in 2022, but now they are actively embracing this field.Sygnum Chief Investment Officer Fabian Dori also believes that the relationship between banks and the crypto industry has undergone a structural change. "The past trades of 'going long on Bitcoin and shorting bankers' are over; banks have shifted from resisting digital assets to building, supporting, and distributing digital assets through custody, tokenization, and compliant trading." This change is primarily driven by growing customer demand and gradually clarified regulatory rules, rather than short-term market cycle changes.Anchorage Digital CEO Nathan McCauley stated that over the past two years, its client structure increasingly reflects the trend of integration between traditional finance and crypto finance. Large financial institutions typically choose to collaborate with specialized crypto infrastructure companies rather than building their own technology systems.In recent years, more and more financial institutions have entered the crypto space, including Swissquote, DBS, BBVA, BNY Mellon, Credit Suisse-related institutions, as well as Morgan Stanley and Charles Schwab.

According to Bitcoin.com, Gurinder Singh Josan MP and Lord Vaizey, co-chairs of the UK All-Party Parliamentary Group on Crypto and Digital Assets (APPG), have written to the CEOs of major UK banks requesting clarification on whether they provide account services to crypto businesses, what restrictions are placed on digital asset transactions, and whether these policies will be adjusted with the implementation of the new regulatory framework in the UK.The MPs pointed out that access to banking may be the single biggest obstacle to the development of crypto and digital asset businesses in the UK. If licensed crypto businesses are still unable to obtain basic banking services, the competitive goals of the new regulatory system will be difficult to achieve.Lucy Rigby, Economic Secretary to the Treasury, has previously stated that banking service restrictions should not be imposed on FCA-authorized crypto businesses solely due to the nature of the industry. The deadline for submitting written evidence for this inquiry is August 31, and the APPG will use this to make policy recommendations to the government.

According to bits.media citing RBC, several Russian banks focused on providing services to import and export businesses have begun to request cryptocurrency transaction explanations from their clients, requiring corporate clients to disclose the economic purpose of purchasing USDT and confirm that the counterparties providing the crypto assets are listed in the central bank's digital asset exchange operator registry.However, this registry has not yet been established, and the relevant regulatory laws only took effect on September 1. The central bank is still formulating the details, making the banks' requests practically impossible to fulfill. Experts believe such requests do not comply with current laws, and lawyer Elizaveta Lobuteva stated that they should be regarded as routine compliance checks and preparations for future regulatory changes, rather than new mandatory obligations.

The UK Parliament's Crypto and Digital Assets APPG co-chair Gurinder Singh Josan and Lord Vaizey of Didcot have written to the CEOs of all major UK banks, requesting clarification on how they treat cryptocurrency and digital asset businesses. The letter raises six questions regarding the banks' current policies, whether they provide services to crypto businesses, related transaction restrictions and their determining factors, and whether they have adjusted their practices since the UK Financial Conduct Authority (FCA) regulatory regime came into effect.The group stated that many crypto businesses find it difficult to open bank accounts in the UK, and some banks restrict related payments. This letter stems from the parliamentary inquiry into access to banking services launched on July 21, with written submissions due by August 31. A January survey by the UK Crypto Asset Business Council indicated that the proportion of transactions blocked or delayed by banks when transferring to crypto exchanges is estimated to be as high as 40%. HSBC, NatWest, Monzo, and Nationwide limit the amount transferred to crypto exchanges each month to between £5,000 and £10,000, while Starling and Chase UK prohibit such transfers altogether. Lucy Rigby, the Economic Secretary to the Treasury, stated that the government does not want FCA-licensed businesses to be restricted by banks solely because of their industry; the FCA completed the relevant rules in June, and the regime will be enforced from October 2027.

As of the week ending July 31, foreign central banks held $25.534 billion less in U.S. Treasury securities, compared to a previous value of $33.902 billion.

According to Daum, the South Korean stock market has recently experienced increased volatility, with investors' risk appetite significantly cooling, and funds are flowing back from the stock market to safer assets such as banks. Due to adjustments in the semiconductor sector and stricter regulations on leveraged investments, the funds waiting to be invested in the South Korean stock market are rapidly withdrawing, leading to a phenomenon of "reverse capital migration."Data shows that by the end of July, the balance of time deposits at the five major banks in South Korea (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) reached 973.49 trillion won, an increase of 24.09 trillion won compared to the end of the previous month, marking the largest monthly increase this year.There has also been a noticeable contraction in funds around the stock market. Data from the Korea Financial Investment Association shows that the deposits in investors' securities accounts (funds waiting to be invested in stock trading) reached a historical high of 139.69 trillion won on June 4, but had fallen to 107.20 trillion won by July 28, a decrease of over 32 trillion won in less than two months. The balance of credit trading financing, which represents the scale of market financing transactions, also dropped to 33.19 trillion won during the same period, down approximately 4.5 trillion won from the peak of 37.72 trillion won recorded on July 2, a decrease of about 12%.

According to Jinshi, multiple banks are in talks to provide a $15 billion loan to a data center developer collaborating with Anthropic, with Google providing financial guarantees and chip support.