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Brazil has enacted sweeping tax reforms, imposing a 17.5% flat levy on all cryptocurrency capital gains from 12 June 2025 under Provisional Measure 1303. This marks a stark shift from the former progressive system with a monthly exemption, now replaced by a single rate that applies to any crypto profit—trade, swap, DeFi yield, NFT sale—even via offshore exchanges or self-custody wallets.

Casual traders previously exempted on gains up to R$35,000 per month will now face taxation. A modest R$30,000 profit previously carried a zero burden; today, the same yield triggers a R$5,250 tax under the uniform rate. Medium-scale investors face a slight rise from the previous 15%, while the wealthy—who once paid up to 22.5%—now benefit from reduced liability.

The reform extends the tax net to assets held outside Brazil or in private wallets: all gains, regardless of custody location, fall under the 17.5% rule. Gains from decentralised finance activities, staking rewards, NFT transactions and token swaps are subject to the same flat regime.

Capital gains must now be reported and paid quarterly. Taxpayers may carry forward losses for up to five prior quarters—a benefit that will be curtailed in 2026 under proposed legal adjustments.

The reform’s scope is broader than crypto. Fixed‑income investments previously exempt—such as LCIs, LCAs, CRIs and CRAs—will now face a 5% tax on earnings. Meanwhile, gross revenue from online betting will be taxed at 18%, rising from 12% this coming October.

Brazil’s decision mirrors its wider fiscal strategy. With the nation’s overall tax-to-GDP ratio peaking above 32% in 2024, the government seems intent on widening the tax base and closing enforcement gaps. By bringing offshore holdings and DeFi into scope, authorities signal enhanced oversight and a tightening grip on previously opaque financial flows.

Advocates highlight the new system’s simplicity. A flat rate streamlines compliance, eliminating thresholds and multiple brackets, potentially reducing disputes and administrative complexity. Critics argue it disproportionately affects small investors and gig‑economy earners, who lose prior exemptions with little recourse.

Financial institutions and crypto‑focused service providers are preparing advisory tools to assist taxpayers with new obligations. Tax‑tracking platforms, accounting software and professional guidance are expected to surge in demand as individuals and small enterprises strive for compliance.

Looking ahead, the government plans to reduce the loss carry‑forward period in 2026 and explore pilot schemes to permit up to 50% of salaries to be paid in cryptocurrencies, particularly for remote work and contractors. Some fintech firms are already eyeing the change, examining crypto payroll and treasury integration.

Investors and citizen‑taxpayers must now track all crypto movements—onshore and offshore, centralised or decentralised. Each taxable event requires precise record‑keeping of acquisition cost, sale value, platform or exchange used, and timing. Errors or omissions could trigger penalties, including fines and interest charges.

Brazil’s audit agency intends to intensify scrutiny using on‑chain analytics, cross‑referencing declarations with blockchain records. Collaboration with international tax authorities may further bolster enforcement capacity.

The flat 17.5% tax places Brazil in a middling position globally—higher than zero‑tax jurisdictions like the UAE and Switzerland, but considerably lower than India’s 30% flat or Japan’s top marginal rates exceeding 50%.

The European Central Bank has green‑lit a pioneering dual‑track framework to enable settlement of transactions on distributed ledger technology platforms using central bank money. The Governing Council’s initiative combines a short‑term pilot, dubbed Pontes, scheduled to interface DLT platforms with TARGET Services by the end of the third quarter of 2026, and a longer‑term initiative, Appia, which seeks to establish a future‑proof global DLT infrastructure.

Pontes represents the near‑term goal: creating a secure link between existing DLT platforms and the Eurosystem’s TARGET services—namely TARGET2, T2S and TIPS—through a unified Eurosystem solution. It builds directly on exploratory work carried out between May and November 2024, where 64 participants explored over 50 experimental setups that used intraday escrow and liquidity tokens. The ECB has indicated its intention to invite expressions of interest from the market to join Pontes’ pilot phase, expected to commence by Q3 2026.

The longer‑term Appia track explores integration of DLT in a broader ecosystem, extending into global payment and securities infrastructures. This initiative aims to support international use cases such as cross‑border foreign exchange settlements and compliance with global standards, collaborating with public and private sector stakeholders to assess interoperability, scalability and legal frameworks.

During the 2024 discovery phase, experiments featured diverse approaches, including trials led by the Banque de France and Banca d’Italia. These trials used escrow-based intraday liquidity provision mechanisms that participants later advocated to evolve into overnight capabilities, shedding light on liquidity management inefficiencies. Officials noted the potential for simultaneous settlement and collateral automation to cut credit and liquidity risks, while potentially reducing operational costs.

Piero Cipollone, a member of the ECB’s Executive Board, remarked that although DLT and tokenisation remain nascent, they “are likely to offer new ways of improving the settlement of financial transactions.” He emphasised that the dual‑track approach serves innovation while maintaining security and efficiency in financial market infrastructure.

Pontes and Appia will operate under dedicated market contact groups. The ECB intends to outfit each with analysts and market participants to ensure operational robustness and collect stakeholder feedback as integration proceeds. With Pontes launching a Q3 2026 pilot, the ECB is concurrently reviewing additional trial proposals for integration within existing TARGET services frameworks.

The initiatives support the Eurosystem’s wider ambition to modernise wholesale settlement systems. Appia is envisioned as an evolution towards integrated ecosystems that support global operations and stimulate interoperability with other jurisdictions, thereby elevating Europe’s position in the digital infrastructure space.

European authorities have signalled enduring commitment to innovation since experimental work in 2024. The report released today, aligned with Pontes and Appia’s dual‑track launch, highlights how central banks across the continent are balancing emerging technologies with systemic resilience goals—managing legal, technical and liquidity implications harmoniously.

Market analysts believe the Pontes initiative addresses immediate demand from DLT innovators for central bank money settlement in familiar frameworks, while Appia opens the door to more ambitious, globally interoperable DLT ecosystems. Senior banking figures in Frankfurt have described the move as a “critical turning point” in central banks embracing digital transformation to reduce transaction costs and boost cross-border efficiency across Europe.

The ECB’s decision signals readiness to bridge traditional financial infrastructure with blockchain-based innovations without compromising safety or oversight. Through Pontes, the Eurosystem seeks to preserve market standards for liquidity and settlement, building confidence among banks and fintechs in central bank money λ integration. Appia, in turn, presents a vision of digital finance aligned with evolving global regulation and technological standards.

This marks the first time the ECB has approved a formal pilot to connect central bank money with DLT platforms. The outcomes of Pontes will help shape future integrations—potentially serving as a template for central bank digital currencies and wholesale tokenised ecosystems. The experiments under Appia could establish key precedents for global interoperability standards and regulatory coordination, reinforcing the Eurosystem’s role as a leader in secure, innovative payment infrastructures.

Naver Pay is spearheading an initiative to introduce a South Korean won–pegged stablecoin, with Dunamu—the operator behind Upbit—providing technical and operational support, launching a bold push into blockchain-based payments.

The payment platform officially disclosed its intent to enter the won stablecoin space on 26 June. Today, Dunamu confirmed its support for the project, emphasising that Naver Pay will lead, while Dunamu ensures robust backend assistance. Detailed structures and issuance responsibilities remain under review pending regulatory approval.

Stablecoins, digital tokens pegged 1:1 to the Korean won, promise minimal price volatility. Such stability makes them suited for everyday transactions and value storage. Naver Pay aims to cultivate an ecosystem that includes a consortium of financial institutions, tech partners, and regulatory consultation to ensure comprehensive infrastructure, covering issuance, redemption, reserves, wallet services, custody, and integration with existing payment rails.

This partnership coincides with broader momentum in the stablecoin arena. Eight major South Korean banks are collaborating through a joint venture to issue their own won-pegged token, targeting a launch by late 2025 or early 2026, contingent on regulatory clarity. Simultaneously, the Financial Supervisory Service supports these initiatives, signalling growing institutional endorsement.

On the legislative front, the National Assembly is considering the Framework Act on Digital Assets, which outlines provisions specific to KRW stablecoins. This follows advocacy within the Democratic Party for formal recognition of stablecoins as legitimate mediums of payment, underscoring their strategic importance in national finance.

Regulators like the Bank of Korea maintain a cautious stance toward non-bank stablecoin issuers, particularly fintech firms, reflecting concerns over financial stability and reserve transparency. At present, the central bank continues to advance its own CBDC project, but no formal decision has been made to integrate these private-sector stablecoins into national payment systems.

Naver Pay’s scale positions the platform as a potential game‑changer. With access to Naver’s vast user base—spanning search, e‑commerce, messaging, webtoons and fintech—the stablecoin could gain rapid consumer acceptance. Meanwhile, Dunamu brings its deep expertise in digital asset technology and compliance, as evidenced by Upbit’s leading position in South Korea’s exchange market.

International regulators are also focusing on stablecoin frameworks. In the US, the Senate passed the Genius Act on 17 June, indicating growing legislative momentum. Against this backdrop, South Korea’s regulators are keen to streamline stablecoin governance, striking a balance between innovation and consumer protection.

Deutsche Bank is set to roll out a digital assets custody service in 2026, joining forces with Bitpanda Technology Solutions and deepening its existing alliance with Swiss fintech Taurus SA.

Aimed at institutional and corporate clients, the bank’s custody offering is built on two pillars: custody and tokenisation capabilities powered by Taurus SA, and the digital infrastructure from Bitpanda’s technology arm. Taurus has been the backbone of Deutsche Bank’s digital asset efforts since 2023, and the integration with Bitpanda is expected to significantly expand operational capacity.

Inside sources familiar with the initiative confirm that launch preparations are already underway, with a projected go-live in early 2026. The move reflects Deutsche Bank’s view that tokenised assets could become a fundamental component of the financial ecosystem, aligning with growing projections that this market could reach hundreds of billions by the end of the decade.

Taurus SA—positioned as a leader in digital asset infrastructure—provides enterprise-grade cold, warm and hot custody solutions, along with tokenisation services that Deutsche Bank will leverage. As noted by Taurus co‑founder Lamine Brahimi in 2023, the match between the Swiss firm’s infrastructure and Deutsche Bank’s scale was a critical factor in formalising their initial partnership.

Meanwhile, Bitpanda’s technology unit will contribute real‑time, scalable digital asset operations. The Vienna‑based firm, which supports more than 4 million users across Europe, already offers regulated trading and custody services for cryptocurrencies, stocks, ETFs and commodities. Deutsche Bank’s adoption of Bitpanda’s tech could enable graduated access to a broader swathe of tokenised assets for its clients.

The partnership builds on Deutsche Bank’s cautious but steady progression into the digital asset landscape. Already serving as the banking partner for Bitpanda’s German IBAN services—and integrating Bitpanda’s platform for retail payments—Deutsche Bank has maintained a conservative stance, ensuring compliance and risk protocols are robust. According to Ole Matthiessen, global head of cash management, the bank only engages with well‑regulated platforms that meet strict compliance standards.

Deutsche Bank’s ambitions extend beyond custody. It is exploring stablecoins, tokenised deposits, and potential issuance, reflecting a broader strategy to anchor its digital asset business across the value chain. The bank’s head of digital assets, Sabih Behzad, highlighted the options ranging from reserve management to issuing stablecoins, whether solo or in consortiums.

Industry insiders point to looming regulatory clarity—particularly in Europe under MiCA and in the U.S.—as a driving force behind institutional adoption. PwC projects that tokenised assets could swell from around $40 billion today to over $317 billion by 2028, reflecting an appetite for innovation tempered by oversight.

Deutsche Bank’s strategy appears calibrated: building momentum in custody while evaluating tokenised product launches. This dual approach affords adaptability with measured risk—a model that mirrors its cautious adoption of Bitpanda’s IBAN service and Taurus custody tech.

Analysts suggest that established banking institutions will need to offer multi-custodial and tokenisation services if they are to remain relevant in a changing market. As global custodians like BNY and JP Morgan enhance real‑time asset transfer and tokenised solutions, Deutsche Bank’s 2026 launch will position it alongside peers seeking to modernise legacy models.

Deutsche Bank’s custody initiative arrives at a pivotal time. Regulatory frameworks for digital assets are crystallising, and institutional allocations to tokenised securities and stablecoins are gaining traction. Completion of the Bitpanda‑Taurus integration will be a critical milestone, forming the technological foundation of the service.

With momentum gathering, competition is intensifying. Other major banks—such as Banco Santander—are also evaluating stablecoins and custody offerings. At the same time, fintech stand‑alone firms are aggressively scaling in tokenised markets.

Yet Deutsche Bank brings two powerful advantages: it merges legacy banking infrastructure with cutting‑edge digital asset platforms and does so through meticulously selected partnerships. If its 2026 custody service delivers on promised security, compliance and efficiency, it could redefine institutional trust in the tokenised era.

Saudi Arabia’s Public Investment Fund posted a 60 per cent plunge in net profit for 2024, even as its assets surpassed the US $1 trillion mark, the fund disclosed on 30 June. The drop came amid persistent high interest rates, inflationary pressures, and a wave of impairments tied to escalated costs and shifting operational plans.

Net income dwindled to 25.8 billion riyals, down sharply from 64.4 billion riyals in the prior year. This contrast underscored the divergence between headline growth and bottom‑line volatility within Saudi Arabia’s principal engine for economic diversification.

Assets under management rose by 18 per cent to 4.321 trillion riyals, up from 3.664 trillion riyals in 2023. The surge came largely from fresh capital injections, including transfers from oil‑linked revenues, plus appreciation in existing holdings, particularly in domestic champions such as Saudi Aramco and Saudi National Bank.

Yet, comprehensive income—an accounting measure that factors in unrealised gains and asset revaluations—tipped into negative territory, registering a 140 billion riyals loss following a gain of 138.1 billion riyals the previous year. The swing reflected deep writedowns, tied to project revaluations across the PIF’s footprint.

Monica Malik, chief economist at Abu Dhabi Commercial Bank, attributed the downturn in part to recalibration of investment strategies. She highlighted how “prioritisation of some projects and the extension in the timelines of some giga projects could have been a factor for the impairments,” and pointed to rising costs as another pressure point.

Among these giga‑projects is NEOM, an ambitious urban megacity on Saudi’s Red Sea coast. Backed by hundreds of billions of dollars in PIF funding, NEOM remains central to the fund’s strategy, though its scale and timeline have been under increased scrutiny amid cost inflation and changing economic dynamics.

Cash reserves stood firm at 316 billion riyals, while group loans edged up to 570 billion riyals, signalling ongoing borrowing to propel expansions. This reflects PIF’s dual posture: aggressive investment on one hand, and debt financing on the other.

Historically, PIF has been pivotal to Saudi Arabia’s Vision 2030 programme—Crown Prince Mohammed bin Salman’s blueprint to reduce national dependence on oil by building world‑class tourism, tech and renewable sectors. Since 2015, the fund’s remit expanded from passive equity holdings to sovereign‑directed mega‑investments. By end‑2024, PIF had amassed over US $1 trillion in assets, bolstered by successive Aramco asset transfers.

Its investment portfolio spans global holdings—Uber, Boeing, Disney—and domestic ventures like Qiddiya, the Red Sea luxury resort and NEOM. The fund also pursued high‑profile investments, including planned stakes in Heathrow Airport and European hotel chains. Overseeing this expansion has drawn both political and governance scrutiny, reflecting complex trade‑offs under Saudi rules.

Despite today’s profit contraction, the growth in assets cements the fund’s scale and influence. Dividends from Aramco and SNB now fuel a substantial portion of PIF’s recurring income, augmenting returns from non‑oil investments.

The portfolio writedowns—particularly impairments linked to escalated project outlays—underline broader macroeconomic challenges. High global interest rates have upped the cost of capital for long‑gestating developments, while inflation has pushed construction, labour and materials costs upward. PIF’s balance sheet has borne both pressures.

Operating amid this headwind, the fund has begun recalibrating timelines and reprioritising capital deployment. Malik’s comments suggest PIF faces a complex balancing act: stewarding mega‑projects while preserving fiscal discipline. Illiquidity risk, rising debt and market exposure also feature in ongoing risk assessments.

In parallel, PIF is broadening its footprint via bond issuances and global partnerships. According to finance industry disclosures, it is preparing a seven‑year sukuk targeting US $1.25 billion in proceeds. Such moves signal evolving financing strategies that complement traditional government funding and cash reserves.

Central to this outlook is Vision 2030. Despite the profit slump, PIF retains its mandate to catalyse non‑oil economic sectors, from tourism to tech to renewable energy. Arab regional peers have pursued similar diversification, but few match PIF’s scale. The fund’s willingness to shoulder large‑scale writedowns may reflect long‑term thinking: strategic build‑out today, stabilised returns in future decades.

Global investors and markets will likely watch upcoming quarterly and full‑year data for signs of recovery or further calibrations. Rising global interest rates remain a wildcard. Additionally, cost overruns in mega‑projects may prompt sharper scrutiny and public debate about deliverables.

PIF’s holding company, chaired by the Crown Prince, retains political backing, but governance observers continue to emphasise improved transparency and oversight. The fund’s decisions now carry wider implications: not just for returns, but as a barometer for Saudi Arabia’s Long‑Term economic strategy.