News

According to Jinse Finance, the Hong Kong Securities and Futures Commission (SFC) issued a circular today to all licensed virtual asset trading platforms, outlining its requirements for the prudent custody of client virtual assets. This move lays a solid foundation for the industry to gradually adopt more advanced custody technologies under the ASPIRe roadmap. In the latest circular, the SFC lists several best practice examples and the minimum standards that virtual asset trading platform operators should meet, covering areas such as the responsibilities of senior management, the infrastructure and operation of client cold wallets, the use of third-party wallets, and real-time threat monitoring. In the future, these standards will also become core regulatory requirements for virtual asset custodians and will help promote the establishment of an effective virtual asset custody framework within the industry. (Jin10)

According to a report by Jinse Finance, Jlabs Digital analyst Ben Lilly pointed out that stETH is currently being withdrawn from Lido. Meanwhile, another lending protocol, Figment, is absorbing Lido’s market share, which suggests that Figment could potentially be a staking partner for ETFs. 32% of stETH (wstETH) is being used as collateral in lending protocols, and a depegging event could trigger liquidations within these protocols. Notably, at present, 278,000 wstETH are in a “high-risk” state (with high risk defined as a health factor between 1 and 1.1).