UBS extends crypto ETF access to clients in Hong Kong

South Korean Banks Adopt Blockchain for Streamlined Civil Servant LoansSouth Korea’s state-run financial organizations and banks are embracing blockchain technology to streamline the loan process for government employees and enhance loan management for banks.Photo by Shubham Dhage on UnsplashBlockchain-aided loan servicesIn a collaboration announced today at the Korea Federation of Banks (KFB) in Seoul, the Korea Financial Telecommunications and Clearings Institute (KFTC), the Government Employees Pension Service (GEPS), and four local banks are coming together to introduce blockchain technology in providing loan services specifically tailored for civil servants. The four participating banks are NongHyup Bank, Hana Bank, DGB Daegu Bank, and Gwangju Bank.Easier applicationAt present, civil servants are required to acquire a physical loan recommendation letter from the GEPS in order to apply for a bank loan. However, with the implementation of the new loan system, the GEPS will have the capability to issue blockchain-based letters, which can be obtained by civil servants either in-person or remotely at banks. This innovative approach will significantly simplify the verification process for these letters.Easier managementFurthermore, the manual exchange of loan-related information, such as repayment history and retirement details, between banks and the GEPS will be replaced by a more efficient system. The KFTC will take on the role of mediator, ensuring that any changes to this information are immediately reflected in real time. This streamlined approach will significantly enhance loan management for lenders.The launch of this service is scheduled for November this year, bringing about improved accessibility to loans for government employees. As the project progresses, other financial institutions are expected to join in, further enhancing the convenience of public servants. Additionally, these collaborating organizations will explore joint services aimed at providing the necessary support to stabilize the livelihoods of civil servants.

Singapore’s largest bank in terms of assets under management (AUM), DBS Bank, has introduced “DBS Token Services,” an offering it describes as “a new suite of banking services that integrate tokenisation and smart contract-enabled capabilities with its award-winning banking services.” The bank announced details of the new service offering via a press release published on its behalf by PR Newswire on Oct. 18. The product caters towards the needs of DBS Bank’s institutional clients, with the objective of unlocking operational efficiencies and transaction banking capabilities.  The product suite includes DBS Treasury Tokens, conditional payments and programmable rewards, with the latter allowing institutions to program and manage the use of funds. The products run on the bank’s permissioned blockchain, while being Ethereum virtual machine (EVM) compatible.Photo by Shubham Dhage on UnsplashRunning on permissioned blockchainThe bank pointed out the implications of operating the service over a permissioned blockchain network, stating:”Using a permissioned blockchain provides DBS full control over these services, enabling the bank to harness the benefits of blockchain technology while adhering to compliance standards.” Permissioned networks utilize distributed ledger technology (DLT) but they don’t truly embrace decentralization. They’ve proven popular with traditional financial services companies who want to still maintain ultimate control over the network. Conditional paymentsThe bank’s new product suite integrates tokenization and smart contract capabilities with existing conventional services. Those smart contracting capabilities make programmability an accessible feature for institutions relative to fund governance.  With that, conditional payments are likely to lead to an improvement in payment workflows for institutions. The bank believes that this aspect of its latest offering builds upon a recent pilot project that DBS engaged in alongside Enterprise Singapore and the Singapore Fintech Association (SFA). That project involved the utilization of blockchain technology, and in particular smart contracting, for the purpose of distributing government grants. DBS Token Services has been integrated with the bank’s core payment engine and various other banking sector payment infrastructures. Treasury Tokens enable institutional clients to settle multi-currency intra-group transactions across multiple markets instantaneously, 24/7. Back in August DBS partnered with digital payments provider Ant International, an affiliate of Chinese conglomerate Alibaba Group, on a pilot project involving blockchain-based treasury and liquidity management using Treasury Tokens. DBS Bank’s Group Head of Global Transaction Services, Lim Soon Chong, claimed that "by leveraging tokenisation and smart contract capabilities, DBS Token Services enables companies and public sector entities to optimise liquidity management, streamline operational workflows, strengthen business resilience, and unlock new opportunities for end-customer or end-user engagement.” Chong added that the new service is a leap forward in transaction banking, demonstrating “how established financial institutions can leverage blockchain technology to deliver new ground-breaking features and experiences.” Embracing blockchainDBS is an outlier in TradFi relative to blockchain and digital assets insofar as it has delved much deeper into the emerging technology by comparison with the majority of its peers. Last month, the company announced that it plans to introduce over-the-counter (OTC) crypto options trading and structured notes for institutional clients during Q4 2024. Earlier in the year, it participated in a proof of concept for FX payment versus payment (PvP) settlement on the blockchain of Singapore-based unified ledger market infrastructure firm Partior.

Over the course of the past two weeks, the unit price of Ethereum (ETH) has surged 32%, with a report from a Singapore-based crypto financial services firm asserting that the Asian market has had a large part to play in that increase. Taking to X on July 16, Matrixport, a crypto financial services platform, provided its daily analysis in which it suggested that “Ethereum’s recent outperformance appears to be heavily influenced by Asia.”Photo by DrawKit Illustrations on UnsplashAsian market influenceThe company included a graph in which it had plotted Ethereum’s recent performance during Asian trading hours, asserting that as much as 17% of the uptick in the Ether unit price can be accounted for by the actions of market participants within the Asian market. It added:"The influence of the Asian market in the pricing of crypto assets is continuing to rise, whether in terms of volatility or trading momentum.” ETH ETFs in Hong KongSpot ETH exchange-traded funds (ETFs) were approved in Hong Kong in April 2024. Hong Kong ETH ETF volumes have risen substantially in July, with significant inflows being recorded related to both retail and institutional investors.  In the past, many commentators have suggested that the addition of staking would be an attractive prospect for institutional investors who like the idea of accumulating an ongoing yield. With that, Asian investors may be enticed to delve further into Ethereum positions going forward, given that ETF issuers are trying to add that component to their offerings. Huaxia Fund, a subsidiary of China Asset Management (ChinaAMC), is preparing to launch staking as part of its ETH ETF. Another potential driver for ETH in Asia in the future lies with the ongoing enablement of trading via established institutions. Earlier this week, China Merchants Bank’s brokerage arm received a virtual asset license in Hong Kong to trade crypto assets. It’s the first mainland China-affiliated brokerage to be awarded such a license, with licensing enabling it to offer trading services related to assets like Ether. Global assetWhile Asia is playing a role in ETH’s recent move upwards, the asset is traded globally and with that, factors further afield are also playing a role. Tom Lee, founder of American financial research firm Fundstrat, pointed out on X that ETH had been range-bound since 2021. However, he believes that the rise of stablecoins, which by and large run on Ethereum, together with ongoing growth in the tokenization of real-world assets (RWAs), is driving demand for the digital asset. While Bitcoin treasury companies have played a significant part in driving Bitcoin in recent months, Ethereum is starting to see similar activity. Lee made the point that Strategy (formerly MicroStrategy) “set the standard for Treasuries,” but that now BitMine “wants to be the Microstrategy of Ethereum.” The crypto mining and treasury firm confirmed on July 17 that it now holds $1 billion worth of Ethereum. Arthur Hayes, co-founder of BitMEX and chief investment officer (CIO) at Hong Kong family office, Maelstrom, said that it was “ETH szn” and that the Maelstrom Fund is buying the digital asset. Tom Dunleavy, head of venture at Varys Capital, asserts that ETH will hit a unit price of $10,000 by the end of 2026.