Wemade Expands Web3 Ecosystem Through New Collaborations

Blockchain Deposit Insurance Corporation (BDIC), an emerging crypto insurer based in Florida in the United States, with corporate headquarters in Bermuda, has disclosed that it is preparing to launch its cryptocurrency insurance platform.Photo by Kindel Media on PexelsStarting point in AsiaIn a press release published on Feb. 11, BDIC outlined that the launch would take place in Q2 2025, with its crypto insurance underwriting service commencing in key Asian markets to begin with.  The company has chosen Asia as its starting point, where it feels crypto adoption continues to build momentum. With that, it specified Hong Kong, Singapore, Japan, Taiwan and South Korea as target markets.  While the initial launch will take place in Q2, the company foresees having expanded into Southeast Asia by Q4 2025. Broader service coverage will follow across the greater Asia-Pacific (APAC) region by 2026, with particular emphasis on entering the Hong Kong market. Company CEO Jeffrey Glusman cited a growing demand for crypto wallet security across Asia. He underlined the growing crypto adoption rate in the region, suggesting that this will encompass 300 million users by 2028. Insurance essential for mainstream adoption Speaking about the product offering more generally, Glusman said that the crypto sector has reached a critical inflection point. With that, he believes that “institutional-grade insurance solutions are essential for mainstream adoption.” He added: “BDIC introduces a new paradigm in digital asset protection, using advanced risk assessment algorithms and real-time monitoring to safeguard users’ holdings.” Token launch The company is also planning to launch a native token for its platform, “BDIC Coin,” in Q2 2025. The purpose of the token launch will be to power the BDIC Foundation Reserve Fund, a reserve which will be used for the purposes of premium payments and claim settlements. Furthermore, the token will enable holders to participate in governance voting relative to the project. BDIC claims that it has established compliance protocols and a whitelist in order to provide for a robust and equitable tokenomics structure. Glusman believes that the timing of BDIC’s launch couldn’t be better. A recent report by information services company GlobalData corroborates his view. The report, published on the back of a GlobalData survey, outlined that only 10.8% of crypto holders worldwide have insurance in place for their digital assets.  The survey data suggests that 41.9% of non-policy holding respondents would purchase such insurance given the opportunity, while a further 26.2% were open to the idea. Theft or hacking of digital assets was perceived to be the most important risk to cover in a digital asset insurance policy in the case of a quarter of respondents. The number of insurers offering crypto-related insurance remains limited. However, it would appear that there’s a significant growth opportunity for firms like BDIC, based on the survey data. While there might be a growth opportunity, there are also challenges. Nischal Shetty, founder and CEO of WazirX, an Indian crypto exchange platform that suffered a $230 million hack in 2024, described the difficulties encountered by the company in trying to get insurance when interviewed last August. He stated: “We tried to get insurance in the past, but we did not get any provider who would be willing to insure these assets. It's not an easy process.”

Ripple APAC executive predicts institutional adoption surge in 2024Fiona Murray, the Managing Director overseeing the Asia-Pacific region (APAC) at enterprise blockchain firm Ripple, envisions a substantial uptick in institutional adoption of cryptocurrencies in the upcoming year.Photo by Kanchanara on UnsplashEmphasis on AsiaMurray set out her predictions for the coming year in a thread of posts on the X social media platform on Monday. This foresight coincides with a notable upswing in interest from traditional financial institutions within the digital currency market, especially in the APAC region.Murray predicts an unprecedented surge in cryptocurrency adoption within financial institutions, underscoring a shifting landscape where companies increasingly leverage cross-border payment solutions powered by blockchain technology. She wrote:”Entering 2024, we are expecting to see a surge in institutional adoption of crypto by financial institutions, especially in the APAC region. This includes the greater usage of cross-border payments among companies.”Web2 firms to integrate blockchainThis departure from traditional payment methods signifies a growing confidence in the security and efficiency offered by digital currencies. Ripple’s APAC executive emphasizes the escalating investments by well-established Web2 companies and legacy payment institutions as they integrate blockchain utility into their offerings.“More than ever, leading Web2 companies and legacy payments institutions are investing resources to integrate blockchain utility into their services — ‘Nearly half of APAC finance leaders expect blockchain to have a significant impact on business in the next 3 years.’” she stated.This positive outlook is reinforced by proactive measures taken by countries like Singapore and Hong Kong, positioning themselves as global leaders in cryptocurrency and blockchain adoption.Crypto ETFsThe continued rollout of crypto exchange-traded funds (ETFs) adds to the level of institutional adoption that has occurred in 2023 and is likely moving forward into 2024. Hong Kong has been the regional leader in this regard within APAC. The Hong Kong Stock Exchange was the first platform in Asia to offer crypto asset exposure by way of an ETF in December of last year. Since then, several such ETFs have been listed within the Chinese autonomous territory.Last month, multinational investment bank UBS joined industry peers like HSBC in following suit to offer institutional clients access to crypto-linked ETFs. Going into 2024, most industry commentators seem to be convinced that the emergence of BlackRock, the world’s largest asset manager, in promoting a spot bitcoin ETF in the United States means that approval is likely over the course of the next few months. That milestone will undoubtedly have positive reverberations for institutional digital asset adoption in the APAC region also.Strategic importance of APACThe APAC region holds strategic importance for Ripple’s expansion plans, given its rapid technological advancement and openness to innovation. In Singapore, the company received “in principle” approval from the Monetary Authority of Singapore in June. That was upgraded to full license approval in October.Singapore and Hong Kong, among other countries in the region, have emerged as frontrunners in the global cryptocurrency market, fostering regulatory environments conducive to blockchain innovation.These factors underscore the region’s crucial role in Ripple’s global strategy, aligning with the company’s vision and objectives as it seeks to grow its business.

Singaporean Regulator Proposes Framework for Digital Money UseThe Monetary Authority of Singapore (MAS) has released a White Paper that outlines proposed standards for the use of digital assets. The aim is to establish a common protocol and conditions for the utilization of these assets.While the paper identifies the potential digital assets bring in streamlining transactions and promoting financial inclusion, it also outlines challenges that need to be addressed before digital money can be successfully implemented.Photo by Pixabay on PexelsPurpose Bound Money (PBM)MAS’s White Paper, which was published on Wednesday, provides requirements to protect the use of digital assets as a medium of exchange and offers a technical overview of Purpose Bound Money (PBM). PBM allows the sender of digital money to specify certain conditions such as validity periods or how the money can be spent.The covered digital monies include central bank digital currencies (CBDCs), tokenized bank deposits, and potentially well-regulated stablecoins, excluding digital assets that it considers volatile such as Bitcoin. These digital monies are generally pegged to real-world currencies, commodities, or financial institutions, making them more stable.MAS highlights that PBMs utilize a common protocol compatible with different ledger technologies and forms of money. This protocol enables money to be directed toward a specific purpose without requiring the money itself to be programmed. It functions as a secure two-layered delivery vehicle, with funds held as collateral in a “wrapper” until specific conditions are met for its release.Standardized formatThe standardized format outlined in the White Paper will allow users to access digital money using their preferred wallet provider. By establishing these standards, the prospects for digital money to become a significant component of the future financial and payments landscape are enhanced. Standardization and regulated use of PBMs can unlock economic value, facilitate efficient and inclusive digital transactions, and provide additional consumer protection.One notable application of PBMs is in protecting online payments, such as e-commerce transactions and prepaid packages. With PBMs, advance payments can be securely held until the service is fulfilled, ensuring that the product or service is delivered before funds are released. This benefits both consumers and merchants, assuring consumers of product delivery and allowing merchants to verify payment before delivering.PBMs can also aid businesses in mitigating risks associated with international trade transactions, ensuring secure and efficient payments while reducing the potential for fraud or non-payment.InteroperabilityTo ensure the safety and usability of digital monies, MAS highlights considerations that will impact PBM implementation. Interoperability across different platforms is crucial to avoid fragmentation and excessive fees. The choice of underlying digital currencies also affects usability and value, with CBDCs, tokenized bank liabilities, and stablecoins offering varying levels of guarantees and regulatory oversight. Additionally, privacy, digital readiness, and the impact on users need to be carefully assessed.MAS acknowledges that the regulatory landscape for digital monies is still evolving globally, which may lead to varying regulatory treatment of PBMs across jurisdictions. It believes that policy considerations should be thought through when designing PBM-based solutions, including decisions regarding issuance, distribution, and conditions for use.