Asian fund acquires majority stake in The Block

Hyosung TNS and APoT Join Hands to Promote NFT Portal ServiceSouth Korean IT infrastructure and financial solutions provider Hyosung TNS announced that it is teaming up with APoT Platforms, a company specializing in developing blockchains for real-world assets (RWAs), to promote NFTtown — Hyosung TNS’ portal service dedicated to providing information, news, and educational content on NFTs.Photo by Andrey Metelev on UnsplashBringing real-world assets to blockchainAPoT Platforms is equipped with technology that is able to embed data on RWAs, such as artwork and luxury goods, thereby connecting them to the blockchain. The company also maintains an extensive network of collaborative relationships with various NFT artist organizations and communities both domestically and abroad.Hyosung TNS plans to bring APoT’s artist network to NFTtown, allowing users to easily access information regarding NFT artists and their works.The two companies will also work together on other efforts, including introducing NFT artworks, digital product transfers, and events for NFT holders.NFT art exhibitionAs the first step of their collaboration, they plan to exhibit and sell works by renowned NFT artists such as Han Kwang-suk, Quiet Eye, and HAN (Han Sun-ok) this month at the Lotte Department Store Ilsan’s Spazio We;R Gallery.

Local crypto firms in Hong Kong are understood to be in “active” talks with the Securities and Futures Commission (SFC), with a view towards bringing about the integration of staking within crypto exchange-traded fund (ETF) products. Haiyang Ru, chief risk officer of HashKey Group, a leading Hong Kong-headquartered digital asset financial services firm, told The Block that the Chinese autonomous territory may shortly see the introduction of staking services relative to crypto derivatives trading products and crypto ETFs. He stated: "We are actively discussing with the SFC the introduction of ETF staking and tokenized money market funds, as well as launching an 'Earn' feature alongside spot trading."Photo by tommao wang on UnsplashFocus on staking in 2025HashKey is one of a number of well-known digital asset firms that is in regular contact with the regulator. Other firms are also paying attention to developments. Alessio Quaglini, co-founder and CEO of Hex Trust, a Hong Kong-based firm that offers regulated institutional digital asset custody and staking services, believes that staking will garner greater attention in 2025. He stated: “Institutions that move into crypto custody will naturally seek yield-generating opportunities for their clients."  OSL, one of the first entities alongside HashKey to be awarded digital assets-related licensing in Hong Kong, has also identified rising customer demand for yield-generating products in the crypto space within the Chinese autonomous territory.  Global competitionThe authorities in Hong Kong are likely to be watching developments overseas also. ETH ETFs in the United States have reeled in $3 billion in capital inflows without staking. Since the launch of these products, many industry commentators have suggested that in the event that staking is approved, big institutions, particularly pension funds and wealth managers, are going to be attracted to the passive yields on these ETFs.  Traditional finance (TradFi) loves yield, and in the case of Ether ETFs that include staking, an annual percentage yield (APY) of up to 5% should be possible. Last month, an S&P Global report suggested that there was growing interest from institutional investors with regard to crypto staking opportunities.  Cryptocurrency ETF issuer 21Shares has applied to the Securities and Exchange Commission (SEC) in the U.S. to include staking within its ETH ETF product. A similar application has been made by crypto asset manager Grayscale relative to its ETH ETF offering. With that activity ongoing in the U.S. and inter-jurisdictional competition in terms of digital asset growth opportunities, it’s likely that Hong Kong will be keen to enable this market offering. Staking ‘unparalleled’ in TradFi markets Earlier this week, the SFC introduced a new roadmap geared towards strengthening the digital assets sector in Hong Kong. One of the initiatives itemized is the enabling of crypto staking.  The explanatory document published by the regulator states that it is examining the introduction of staking with safeguards in respect to digital asset custody, liquidity risks and “ensuring that the operational processes for staking are transparent.” The SFC described crypto staking as a yield generation opportunity that is unparalleled in TradFi markets.

Crypto Exchange Loss Deters Temasek from Investing in Crypto FirmsSingapore’s state-owned investor Temasek has ruled out investing in crypto companies for now, following a $275 million loss in the bankrupt US crypto exchange FTX.Photo by Plato Terentev on PexelsRegulatory uncertainty concernsTemasek’s Chief Investment Officer Rohit Sipahimalani said in a CNBC interview on Tuesday that the regulatory uncertainty in the crypto sector made it very difficult for the fund to make another investment in an exchange.“There’s a lot of regulatory uncertainty in this environment. And I do think that it will be very difficult for us to make another investment and exchange in the middle of all this regulatory uncertainty,” Sipahimalani said.He added that Temasek was not interested in investing in cryptocurrencies, but rather in exchanges that could generate fee-based revenue without taking balance sheet or trading risks. In May, it was reported that Temasek had invested in algorithmic currency system, Array. However, the global investment company was quick to deny those reports.“We’ve never been looking to invest in cryptocurrencies. Even the investment in FTX, we’ll be talking about investing in an exchange, which allowed us to get fee-based revenue without thinking [of] balance sheet risk or any trading risks,” he said. However, he said that Temasek would not be comfortable investing in exchanges given the way things are right now, and that it would depend on the right regulatory framework and investment opportunity.“If you have the right regulatory framework, and we are comfortable with it, and you have the right investment opportunity, there’s no reason for us to not to look at it,” he said. Temasek’s FTX investment was part of its early-stage investment strategy, where it invests in new disruptive technologies and tries to find the next winners, Sipahimalani said.But the strategy backfired when FTX filed for bankruptcy in November, with more than 1.4 million creditors and billions of dollars in liabilities, according to bankruptcy filings.Reputational damageTemasek wrote down its $275 million investment in FTX to zero soon after the collapse of the exchange. However, the bigger concern for the company is the posting of its worst returns since 2016 amid macroeconomic and geopolitical challenges. In the financial year ending in March 2023, the investing behemoth posted a $7.3 billion loss.The FTX loss sparked criticism from Singapore’s Deputy Prime Minister and Finance Minister Lawrence Wong, who called it “disappointing” and damaging for Singapore’s reputation. And that is the greater issue for Temasek relative to FTX.The amount of that particular loss is not that significant, given the size of the company and the scale of losses incurred elsewhere. The issue has been the reputational damage that the company has experienced as a direct consequence. Temasek maintains that it carried out competent due diligence, as have all of the venture capital investors who have all had their FTX investments wiped out.Further details on that due diligence are likely to emerge as Temasek, alongside many other leading investors in FTX, is being sued by creditors on the basis that they gave credence to what transpired to be a fraud. Temasek announced in May that it would cut the salaries of the staff responsible for the FTX investment, after conducting an internal review of the deal.