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The Bank for International Settlements and the New York Federal Reserve have launched Project Pine to test smart contract tools, exploring the application of tokenized monetary policy

ChainCatcher news, according to Cointelegraph, the Bank for International Settlements (BIS) has partnered with the Innovation Center of the Federal Reserve Bank of New York to conduct research testing a tokenized monetary policy toolkit based on smart contracts. This experiment, named Project Pine, aims to explore how blockchain technology can help central banks achieve rapid policy responses in future tokenized financial systems.According to a report released by the BIS on May 15, the research team developed a prototype of a "universal customizable tokenized monetary policy toolkit" and validated its flexibility in hypothetical scenarios. The results showed that central banks could instantly adjust policy tool parameters, such as collateral standards and interest rates, and complete the substitution of liquidity collateral and non-liquid collateral within 10 minutes.The BIS emphasized that if currency and securities tokenization are widely adopted, smart contracts will become the core technology for implementing monetary policy. This framework allows central banks to "instantly" deploy new facilities, such as adjusting reserve interest rates or providing liquidity support, enabling rapid responses to crises like declines in collateral value. The report stated that this speed and flexibility provide central banks with new ideas for addressing "emergencies and rapidly evolving risks."However, the report also pointed out the limitations of the current financial infrastructure. Most traditional systems are not yet compatible with advanced use cases like smart contracts, and central banks may face challenges in advancing technological integration. The testing of Project Pine used the Ethereum ERC-20 token standard and combined it with another "access control" standard to ensure compliance.In recent years, financial institutions have accelerated their layout of tokenization technology. At the Consensus 2025 conference, Joseph Spiro, Director of Digital Asset Products at the Depository Trust & Clearing Corporation (DTCC), stated that stablecoins are an "ideal" tool for real-time collateral management in transactions such as loans or derivatives. This collaboration between the BIS and central banks further confirms the trend of exploration of blockchain technology in the traditional financial sector.

Swap contracts are leaning towards a 25 basis point rate cut in September, as traders reduce their bets on the extent of rate cuts by major central banks this year

ChainCatcher news, according to Jinshi reports, as high-level economic and trade talks between China and the United States reach an important consensus, a new round of rebound is triggered. The current trading situation in the U.S. stock market seems as if Trump's "Day of Liberation" shock never happened. Futures indicate that the S&P 500 Index (SPX) will open nearly 4% higher, which could push the index significantly above the levels of April 2. The Nasdaq 100 Index (NDX) is expected to re-enter a bull market.Traders are also cutting back on bets regarding the extent of interest rate cuts by major central banks this year. Swap contracts linked to the Federal Reserve meeting now lean towards a 25 basis point cut in September. Last week, these contracts suggested that the Fed could make a policy change as early as July. However, some investors are concerned about the lack of details in the agreement announced on Monday and the risk of renewed conflict.Three months is not a long time to negotiate a resolution to complex trade disputes. Moreover, it is still unclear what the goals will be at the end of the cooling-off period. When asked how to avoid a further increase in tariffs after the 90-day delay period ends, Treasury Secretary Scott Bessent stated on Monday that it is possible to extend it further.
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