Nomura, Mizuho and Japan Securities Clearing Corporation plan a proof of concept to use tokenized Japanese government bonds as collateral on the Canton Network, aiming to assess whether legislative changes are needed. The project is similar to the US Depository Trust & Clearing Corp.'s initiative to tokenize Treasurys on the same network, but the US project is closer to production.

HSBC and other banks are increasingly using artificial intelligence to improve efficiency and customer service, but the technology is also being exploited by criminals, leading to a surge in fraud. HSBC has appointed its first chief AI officer to leverage the technology, while experts note that banks must embed real-time risk controls and shift from reactive defense to predictive intelligence to stay ahead of criminals.

Anthropic reportedly plans to extend access to its Mythos AI model to European banks within weeks, as lenders race to test the technology already piloted by major US institutions. Regulators have raised cybersecurity concerns and called for broad access to prevent misuse and maintain a level playing field.

Citigroup and JPMorgan Chase are going head-to-head in the emerging digital payments landscape. Both banks are building infrastructure for blockchain-based payments, but their approaches differ: JPMorgan is focusing on in-house, proprietary systems, while Citigroup is turning to partnerships, notably collaborating with Coinbase for stablecoin integrations. Each bank is racing to capture market share, expecting major growth in tokenized transactions and real-time payments.

The Senate has delayed consideration of the Clarity Act, which would set digital asset regulations, and the postponement is creating uncertainty for the Commodity Futures Trading Commission. The delay stems from unresolved issues regarding stablecoin yields and a potential amendment barring senior government officials from profiting from crypto. The CFTC, expecting broader responsibilities, faces challenges with a reduced workforce and budget. "If this doesn't get done soon, it might not get done at all this year," said lawyer Stephen Aschettino of Fox Rothschild.

A group of 40 organizations, including traditional financial institutions and fintech associations, have called on the European Commission to expedite reforms to the DLT Pilot Regime without waiting for the broader Market Integration and Supervision Package to be implemented. The group is seeking an increase in volume limits, expansion to all MiFID asset classes, and the permanence of the regime.