Hedera joins the MiCA Crypto Alliance with Ripple and Aptos and launches an asset tokenization studio
Hedera has joined forces with Ripple and Aptos in the MiCA Crypto Alliance, a collaboration aimed at helping cryptocurrency companies comply with the European Union's Markets in Crypto-Assets (MiCA) regulations.
Hedera announced its participation in the MiCA Crypto Alliance as one of the founding members along with Ripple and Aptos Foundation on September 16. The partnership complies with the European Union (EU) Markets in Crypto-Assets (MiCA) regulations, which aim to enhance transparency and sustainability in the cryptocurrency market.
Moreover, on the same day, Hedera launched its Asset Tokenization Studio to streamline the tokenization process for institutions and developers.
Joining forces for MiCA compliance
The MiCA Crypto Alliance, led by the DLT Science Foundation (DSF), brings together key industry players, including Hedera, Ripple, and Aptos Labs. The alliance aims to provide cryptocurrency companies with the tools and resources needed to comply with the strict EU MiCA regulations, which require companies to disclose their climate impact and meet other compliance standards.
MiCA is the comprehensive EU regulatory framework designed to create a safe and innovative digital assets environment. A key requirement for cryptocurrency asset service providers (CASP) is to publish detailed reports on how their operations impact climate change.
Centralized exchanges and cryptocurrency companies must ensure transparency by making this information accessible to the public through technical documents and online disclosures. Many cryptocurrency companies face challenges in meeting the strict disclosure requirements of MiCA due to the lack of standardized processes.
The MiCA Crypto Alliance addresses this gap by offering advanced tools for sustainability assessments and regulatory compliance.
The tools provided by the DLT Science Foundation help companies conduct environmental impact assessments and streamline the creation of white papers. Reportedly, this makes it easier for companies to comply with regulations without being overwhelmed by the complexity of specific cryptocurrency rules.
The MiCA Crypto Alliance, launched by DSF, promotes collaboration among companies operating within the EU regulatory framework. This collaboration ensures that companies comply with the standards while also driving innovation in blockchain technology.
Hedera launches an asset tokenization studio
Hedera has launched Hedera Asset Tokenization Studio, an open-source toolkit designed for the configuration, issuance, and management of tokenized assets on the Hedera network. Tokenization involves converting real-world assets into digital tokens, allowing for greater liquidity, transparency, and efficiency in financial markets.
Hedera's Asset Tokenization Studio offers services to financial institutions, asset managers, and developers looking to explore the benefits of tokenized bonds and stocks. The studio's tools allow for testing, developing, and implementing tokenized assets with ease. It addresses critical regulatory issues such as Know Your Customer (KYC) requirements, Anti-Money Laundering (AML), and other compliance factors.
According to Hedera, tokenization is gaining momentum, and institutional and high-net-worth investors are showing increasing interest in tokenized assets. A recent EY Parthenon survey revealed that 50% of institutional investors are already interested in tokenized assets, while 44% of asset managers plan to tokenize their own assets in the coming years.
The toolkit includes features such as native KYC/AML indicators and integrated support for U.S. Securities and Exchange Commission (SEC) regulations.
A broader commitment to decentralization
The recent events follow Hedera's announcement that it will join the Decentralized Trust Initiative LF, managed by the Linux Foundation.
Hedera contributed all of its source code, including the Hashgraph consensus algorithm, to the newly created Hiero project by the Linux Foundation.
Hedera's president, Charles Adkins, described this as a 'historic moment in the evolution of decentralized networks' and added that it will drive the development of decentralized trust technologies.