Asian fund acquires majority stake in The Block

The Central Asian republic of Kazakhstan is planning to establish a pilot project that will enable the use of crypto as a means of exchange for goods and services within a specific zone. That’s according to a statement published on Akorda.kz, the official website of the President of Kazakhstan. The statement incorporates the text of a keynote speech delivered by President Kassym-Jomart Tokayev at the Astana International Forum. Tokayev stated: “We are planning to create a pioneering pilot zone called CryptoCity where cryptocurrencies might be used for purchasing goods, services, and even beyond.”Photo by Engin Akyurt on PexelsWorking towards digital transformationThe initiative forms part of Kazakhstan’s efforts to make progress in terms of digital transformation, as well as an aspiration to become an IT hub within the Eurasia region.  For the purposes of the pilot program, the use of cryptocurrencies for the payment of goods and services has been authorized by the government within a pre-defined sandbox environment. Alatau City, an urban development located north of the Kazakhstani city of Almaty, has been chosen for the pilot scheme. Alatau has been established as a special economic zone and planned to become a hub for new technology and knowledge, alongside global tourism. It hosts the Innovation Technology Park together with the Kazakhstan National Nuclear Center, Institute of Nuclear Physics and the Physics & Technology Institute.It’s envisaged that the existing technology and knowledge base within Alatau will support its expansion into the area of crypto payments and blockchain development. In addition to crypto payments, other blockchain-based technologies related to taxation systems, investment and decentralized identity systems will be nurtured and encouraged within the Alatau special economic zone. Potential Eurasian crypto hubIn a recent opinion piece published by the Russian-language government-backed newspaper Kazakhstanskaya Pravda, Kanysh Tuleushin, Kazakhstan’s vice minister of digital development, suggested that the Central Asian republic has the potential to position itself as the region’s leading crypto hub.  Tuleushin also suggested that crypto mining operators could help to modernize the country’s energy sector, playing a role in stabilizing the country’s power grid, while making use of surplus electricity. Kazakhstan had proven to be a popular destination for Bitcoin miners in the past. However, the sudden influx of miners following a ban on the activity in China in 2021 was unplanned for.  The surge in electricity demand put the country’s electricity grid under pressure, leading to blackouts in some cases. In 2023 President Tokayev signed legislation into law that limited the energy use of domestic crypto miners. Despite that negative experience, it appears that Tuleushin has seen the benefits that the activity can bring when regulated and planned for. Back in March, it emerged that lawmakers in Kazakhstan had proposed the creation of a crypto bank. One obstacle to the creation of the bank is a lack of a crypto regulatory framework. According to a report published earlier this month, the National Bank of Kazakhstan is now in the process of preparing a regulatory framework for digital assets.

Japanese Expansion Sees XDC Network Pair Up with SBI SubsidiaryThe XDC Network, a leading carbon-neutral, enterprise-grade hybrid blockchain solution formerly known as XinFin, is gearing up to make inroads into the Japanese market through a partnership with SBI VC Trade, a cryptocurrency exchange subsidiary of Tokyo-based financial holding company SBI.On May 31, the Singapore-based team behind XDC Network announced its addition to SBI’s crypto exchange subsidiary, marking an important milestone in their expansion efforts. Fumiki Ozaki, CEO of SBI VC Trade, expressed his excitement about the partnership, stating, “We are delighted to expand our cryptocurrency offerings by adding XDC to our exchange. XDC Network brings a unique value proposition to the trade finance market, and we believe its addition will enhance our customers’ trading experience.”Photo by Denys Nevozhai on UnsplashToken gainsThe XDC token has been gaining significant traction recently, becoming one of the top 5 altcoin gainers in March 2023 with a 54% rise in just 30 days. The network supports Ethereum Virtual Machine-compatible smart contracts, protocols, and atomic cross-chain token transfers. It also complies with the ISO-20022 message standard, which is widely accepted for electronic data interchange between financial institutions.This particular announcement on Wednesday has resulted in XDC token appreciation of 10% over the past 24 hours alone. At the time of publication, the project’s native token stood at a unit price of $0.03456.Ecosystem development decentralizationIn a move towards decentralization, the XDC Network recently established a decentralized autonomous organization to govern the blockchain. With its deployment in May, the community will have a say in the distribution of ecosystem funds to foster further development.While the project team behind the blockchain network believes the network itself to be decentralized, many projects in crypto have grappled with the difficult issue of governance. XDC Network’s DaoFin project exemplifies its efforts to achieve a more equitable and decentralized form of network governance.SBI delving deeper into cryptoAtul Khekade, Co-founder of XDC Network, expressed enthusiasm about expanding into Japan, stating: “Japan serves as a crucial hub for international trade, and our blockchain platform aims to streamline this sector by improving transparency, traceability, and reducing costs.”SBI is also making strides to strengthen its presence in key cryptocurrency markets. In September 2022, it obtained a license to operate in Singapore, expanding its reach beyond Japan. Additionally, one of SBI’s portfolio companies, digital asset trading technology firm Clear Markets, received approval from the United States Commodity Futures Trading Commission (CFTC) to offer over-the-counter crypto derivatives products with physical settlement.In 2018, SBI partnered with crypto lender Amber in forming a joint venture company in order to take on the Japanese market. It pursued a similar strategy with crypto custody service provider Zodia Custody, forming a joint venture subsidiary to assist it in gaining exposure to the Japanese market.The partnership between XDC Network and SBI VC Trade signifies the growing interest in blockchain technology and cryptocurrency in Japan. By joining forces, XDC Network and SBI VC Trade aim to revolutionize the trade finance market by leveraging the transparency and efficiency of blockchain, ultimately benefiting businesses and consumers alike.With the shared vision of advancing the adoption of blockchain technology, both parties are poised to make a significant impact on the future of trade finance and digital asset trading.

Thailand's Securities and Exchange Commission (SEC) has approved the leading U.S. dollar stablecoins USDT and USDC, expanding its list of approved cryptocurrencies within the Southeast Asian country.Photo by Tarun Ottur on UnsplashListing on regulated exchanges The approval was announced in a statement published on the SEC website on March 6. It means that Tether’s USDT and Circle’s USDC can now be listed on regulated exchanges in Thailand. The regulator had arrived at its decision to add the two stablecoins following a public consultation process regarding regulatory changes. Those changes were finalized last month and will now proceed to go into effect on March 16. The two stablecoins join five cryptocurrencies that had previously been approved. These include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and Stellar (XLM). Certain cryptocurrencies are also being used for the testing of payment settlement through the Bank of Thailand’s Programmable Payment Sandbox.   A regulatory sandbox is a controlled environment testing ground for products and services developed within the private sector. Back in June of last year, the Southeast Asian country’s central bank launched an enhanced regulatory sandbox focused on programmable payments.  USDT issuer Tether responded to the addition of its stablecoin within the approved cryptocurrency list, stating: “This approval enables USD₮ to be traded within the country, facilitating its listing on regulated exchanges and paving the way for USD₮ to be accepted for payments, which advances the region’s leadership in digital asset innovation.” Tether CEO Paolo Ardoino said that the company sees value in the Thai market and with that, it intends to continue to explore ways to broaden its service offering within Thailand. He added:  “We are committed to supporting the long-term success and adoption of stablecoins in Thailand and look forward to contributing to the growth of the country’s digital asset ecosystem by fostering a strong and sustainable stablecoin infrastructure.” Stablecoin market growth According to DeFi data aggregation platform DefiLlama, the stablecoin market now stands at $227 billion in terms of market capitalization. This represents a 68% increase by comparison with the size of the market in 2023. It indicates that stablecoin adoption is on an upward growth trajectory. Digital assets are being used in many instances to facilitate international payments and remittances, particularly in emerging markets. In Europe, American investment bank JPMorgan recently forecasted that the introduction of the Markets in Crypto-Assets (MiCA) regulation will drive euro-pegged stablecoin growth.  Meanwhile, in the United States, S&P Global Ratings recently identified that a current lack of stablecoin regulation is acting as a barrier to broader institutional use. The company anticipates adoption growth once regulatory clarity has been achieved. Vlad Tenev, CEO of commission-free investing platform Robinhood, stated last month on Yahoo Finance’s Opening Bid podcast that stablecoin legislation will be passed in the U.S. in 2025. Tenev believes that applying a 4% interest rate to stablecoins would lead to a greater rate of adoption.