Abu Dhabi, UAE, November 21st, 2024, Chainwire

Coinshift, a prominent name in onchain treasury management, has launched csUSDL: a liquid lending token (LLT) designed to optimize reward opportunities, security, and transparency for both individual and institutional investors. The announcement follows the release of the new Coinshift Business, which integrates payments and accounting services offered at no charge for DAOs and onchain businesses. 

The innovative treasury product – Coinshift’s first – is backed by USDL, a next-generation, RWA-backed stablecoin issued by Paxos International. Notable for passing yield directly to users, USDL’s unique features include FSRA regulation in ADGM, transparency supported by monthly audited reports and reserves held in US Treasury Bills and cash equivalents. 

csUSDL builds on Paxos’ expertise, honed in prominent RWA projects such as PayPal’s stablecoin PYUSD, to offer users additional potential rewards by connecting to DeFi borrowing and lending protocols. 

Coinshift’s new LLT is built on Morpho, an emerging category leader whose non-custodial protocol allows csUSDL to benefit from lending yields and competitive borrowing rates without intermediaries. Deposits on Morpho’s core product exceed $2 billion in crypto assets. 

Adding to a strong network of strategic partners, csUSDL vaults are curated by Steakhouse Financial. The stablecoin specialists work with leading on-chain companies and DAOs such as Lido and Arbitrum, as well as MakerDAO, where they advise token holders on the management of USDS’s $2 billion treasuries program. 

“No individual or organization should have to compromise between stablecoin features such as reward rates or regulatory compliance,” says Coinshift founder and CEO Tarun Gupta. “With csUSDL, we have found a way to leverage all the potential of the blockchain ecosystem: security, transparency, self-custody, and interoperability. Users no longer need to choose between liquidity and yield.”  

csUSDL is seamlessly integrated with the broader DeFi ecosystem. Users have opportunities to access token incentives from Coinshift, Morpho, and other partners. Future plans include enabling users to enhance their potential earnings through strategies on select DeFi platforms.  

The new LLT is accessible through Coinshift’s platform, which reflects the company’s ongoing commitment to excellent user experience and thoughtful design. “It’s a new era of secure, liquid lending,” says Gupta. 

According to Coinshift’s projections, csUSDL holders may see an annual yield of up to 10%. Boosted by token rewards and DeFi and partner programs, potential APY can far exceed that number, the company says, commensurate to individual user’s engagement and risk profile. 

Coinshift’s stated mission is to bring the value of RWAs into DeFi to drive sustainable, long-term growth for users. “We envision csUSDL becoming an essential component of treasury strategies for businesses and DAOs, too,” adds the CEO. 

Users can discover csUSDL at coinshift.global

About Coinshift

Since 2021, Coinshift manages $1B in Safe accounts and has helped organizations power $1B in payments. An established leader in onchain treasury management, Coinshift’s business platform is used by more than 300 organizations, including Aave, Starknet, Gitcoin, UMA, and Zapper. With csUSDL, Coinshift brings its DeFi and RWA vision and expertise to individuals as well as institutions, empowering all users to take control of their capital – and maximize their potential earnings. 

Coinshift is backed by investments from Tiger Global, Sequoia, ConsenSys, and Polygon.

Contact

Head of Business
Tom Albrecht
Coinshift
tom@multisafe.finance

Japan Moves to Reform Cryptocurrency Taxation Policy

In a significant move to boost its cryptocurrency industry, the Japanese government has announced plans to reform its current cryptocurrency taxation policies. The proposed changes aim to reduce the tax burden on investors and foster innovation in the blockchain sector, solidifying Japan’s role as a global leader in cryptocurrency adoption.

The reform, part of a broader economic stimulus package, is expected to take effect in 2025, pending parliamentary approval.

Current Cryptocurrency Taxation in Japan

Currently, Japan imposes a progressive tax rate of up to 55% on cryptocurrency investment profits. This system has been criticized for being overly burdensome, especially for retail investors and small-scale traders.

Challenges with the Current Tax System:

• High Tax Burden: The 55% rate discourages participation from both domestic and international investors.
• Complexity: Calculating crypto profits under the existing system is cumbersome, deterring potential investors.
• Competitive Disadvantage: Countries like Singapore and Switzerland, with more favorable crypto tax policies, have attracted global blockchain talent and capital.

Proposed Reforms to Crypto Taxation

The proposed reform introduces a flat 20% tax rate for cryptocurrency investment profits, aligning it with taxation policies for stocks and forex trading.

Goals of the Reform:

1. Ease Financial Burden: A single tax rate simplifies compliance and reduces the strain on crypto investors.
2. Encourage Innovation: Lower taxes aim to attract startups and developers to build blockchain solutions in Japan.
3. Boost Competitiveness: The reform positions Japan as a hub for cryptocurrency and blockchain technology.

Government and Political Support

The reform has gained bipartisan support, with both leading political parties pledging to collaborate for its approval.

Key Players Driving the Reform:

• Japanese Government: The Ministry of Finance and the Financial Services Agency are spearheading the initiative.
• Political Consensus: Lawmakers recognize the potential of blockchain technology in driving economic growth.
• Industry Backing: Leading crypto firms and industry experts have welcomed the changes, citing long-term benefits for innovation and investment.

Impact of the Reform on Japan’s Cryptocurrency Industry

1. Increased Investment

A reduced tax rate will likely attract both domestic and international investors, driving more capital into the crypto market.

2. Startup Growth

The reform creates a favorable environment for blockchain startups, enabling Japan to compete with global hubs like Singapore.

3. Enhanced Global Standing

Japan’s proactive approach could position it as a leader in cryptocurrency policy, inspiring similar reforms in other countries.

Comparative Analysis: Japan vs. Global Crypto Tax Policies

FAQs About Japan’s Crypto Tax Reform

1. What is the current crypto tax rate in Japan?
Currently, cryptocurrency profits are taxed at a progressive rate, with a maximum of 55%.

2. What changes are being proposed?
The new tax reform introduces a flat 20% rate for cryptocurrency investment profits.

3. When will the reform take effect?
If approved, the new tax policy will be implemented in 2025.

4. How will this reform benefit investors?
The reduced tax rate eases the financial burden on investors, encourages participation, and simplifies compliance.

5. How does Japan’s tax reform compare to other countries?
While Japan’s proposed rate is competitive, countries like Singapore and Switzerland offer even more favorable tax policies for crypto investors.

Conclusion

Japan’s move to reform its cryptocurrency taxation policy is a pivotal step in fostering a more robust and competitive blockchain ecosystem. By reducing the tax rate from 55% to 20%, the country aims to attract investors, support innovation, and solidify its status as a global leader in cryptocurrency technology.

As the reforms progress toward parliamentary approval, Japan’s approach could serve as a model for other nations seeking to balance regulation and innovation in the fast-growing cryptocurrency sector.

For more insights on global crypto regulations, explore our guide on Cryptocurrency Tax Policies Around the World.