Komainu Secures FCA Approval in Boost For Crypto Custody in the UK

Bitget Launches Crypto Loans ProductBitget, the Seychelles-based platform known for its crypto derivatives and copy trading services, is venturing into the cryptocurrency loan market with the introduction of its Crypto Loans product.The move, which the company announced via a press release published on Tuesday, is aimed at attracting users who are seeking alternative funding solutions backed by digital assets, as an option beyond traditional credit institutions.Photo by Traxer on UnsplashDual coin approachThe Crypto Loans product employs a dual-coin approach, allowing users to stake one digital asset as collateral and borrow an equivalent amount in another asset. Bitget believes that crypto loans have been gaining popularity in recent years, with the overall digital lending sector surpassing $8.5 billion in 2022 and experiencing a compound annual growth rate of 20.5%, as reported by Global Market Insights.Despite the overall growth in the digital lending area, the crypto loan sector faced significant setbacks in 2022, particularly with the troubles surrounding centralized crypto lending services. Major firms like Celsius, BlockFi, and Voyager Digital suffered collapses and bankruptcy, raising concerns about the trustworthiness of such services in the future.Bitget, however, is confident in its Crypto Loans product, emphasizing that it has streamlined the loan process to ease user onboarding. The amount users can borrow is determined by the market value of the collateral staked, and the loan is automatically disbursed with a specific interest rate. Borrowers have the flexibility to utilize the funds as needed and adjust the collateral based on their requirements.Swift loans processIt also has the option to repay the loan before or at the predetermined deadline. To further encourage user adoption, Bitget promises support for withdrawals and a swift review process for loan applications. The feature is expected to provide added convenience and ease of use for users.Bitget’s Managing Director, Gracy Chen, highlighted the advantages of the Crypto Loans product, noting that users can now stake less-demanded coins and obtain loans in more liquid assets for investment purposes. The platform’s flexible borrowing and repayment mechanism is designed to accommodate the needs of all users, ensuring convenience and accessibility.Notably, Bitget has been expanding its presence in the crypto market. In March, the platform acquired a controlling stake in BitKeep, a crypto wallet that has been rebranded as Bitget Wallet. Additionally, Bitget unveiled a $100 million venture fund in April, following a $10 million investment from Dragonfly Capital. In May, it announced the launch of its Blockchain4Youth program, recognizing the importance of the younger demographic in achieving crypto mass adoption.As Bitget ventures into the crypto loan market, it’s aiming to go one further than previous crypto lending providers who have largely failed, to provide a secure and user-friendly platform for borrowing and lending digital assets. The success of the product will depend on user trust and confidence, especially given the setbacks experienced by those other players in the sector in the past. Nonetheless, with its growing user base and strategic investments, Bitget is certainly showing some potential relative to making a mark in the cryptocurrency loan market.

Hong Kong’s GSBN Takes Lead in Blockchain LogisticsIn recent years, the logistics industry has seen an increase in the use of blockchain technology to streamline supply chains and provide greater transparency to customers. While some major players, like Danish firm Maersk, have terminated their blockchain-based platforms, others are bullish on the long-term potential of the technology.©Pexels/Ben CheungA blockchain-based shipping platformOne such player is the Hong Kong-based Global Shipping Business Network (GSBN), a nonprofit consortium focused on blockchain trade applications. According to a report by the South China Morning Post, GSBN operates one of the world’s largest platforms as an alternative to Maersk’s TradeLens tool. Since launching its blockchain-based shipping platform in 2021, GSBN has partnered with major shipping companies and terminal operators such as Cosco, Orient Overseas Container Line, Hapag-Lloyd, Hutchison Ports, SPG Qingdao Port, PSA International, Shanghai International Port Group, and Cosco Shipping Ports.The platform, based on a permissioned blockchain with strong data governance, allows only authorized parties to contribute and consume shipping-related data. The organization believes that blockchain is a crucial logistics tool in the long term, and its adoption may take another decade.Blockchain inevitable amid continued digitizationGSBN CEO Bertrand Chen is confident in the potential of blockchain technology, saying that global trade will not continue to rely on “pen and paper” by 2032. He believes that blockchain has the potential to help the industry transform in response to supply issues triggered by events such as COVID-19.“Because of COVID-19, because you have to change the process, I think this is one of the regular use cases of blockchain” . . . “Probably that’s better than NFTs of digital art. NFTs of documents for global trade — this will be the real killer use case.”While Chen acknowledges that China has taken the lead in blockchain logistics due to its significant investment in the industry, he believes that GSBN has global ambitions and is working to attract more European shipping lines. The nonprofit even hopes to onboard Maersk one day, but Chen admits that such a scenario “may be slightly challenging.”Emerging Web3 hubHong Kong has also emerged as a major hub for Web3 and cryptocurrency, with the local government taking action to adopt clear industry regulations. Despite a blanket ban on crypto in China, some Chinese government-related firms have reportedly been growing interested in crypto investment, with state-owned firms like insurer CPIC launching crypto-related funds in early April.Blockchain technology has the potential to revolutionize global trade and supply chain management, providing greater transparency and efficiency. However, widespread adoption may still be years away, and companies will need to navigate regulatory and technical challenges to fully leverage the benefits of blockchain.While some logistics firms may have terminated their blockchain-based projects, others like GSBN remain optimistic about the potential of blockchain technology in global trade. With major shipping partners and terminal operators already onboard, GSBN has a solid foundation to build on as it continues to attract more players to its platform. As the world becomes increasingly digitized, blockchain may be a crucial tool for the logistics industry to transform and adapt to new challenges.

Exploring the motivations behind Crescendo’s multi-million dollar investment in LINE NEXTIn a move that has made headlines as the largest investment made in the Asian blockchain and Web3 industry this year, Seoul-based private equity firm Crescendo Equity Partners has decided to invest $140 million in LINE NEXT, the NFT business arm of Tokyo-based Internet giant LINE Corporation. According to South Korean news outlet DealSite, this can be seen as a strategic decision to leverage LINE’s global network, which dominates the Japanese market. Considering Crescendo’s track record of successful investments in various IT companies, the industry is keen to see whether the firm can replicate this success in the rapidly growing blockchain sector.Photo by Pepi Stojanovski on UnsplashConsortium takes controlAccording to the South Korean Financial Supervisory Service’s (FSS) Data Analysis, Retrieval and Transfer (DART) System on Thursday (local time), Crescendo’s special purpose company (SPC) established to manage the LINE NEXT investment dubbed Ludwig Holdings will act as a third party in the investment by providing KRW 130 billion in paid-in capital. Other financial investors will also contribute KRW 52 billion through a consortium formed with Crescendo, bringing the total investment amount to KRW 182 billion, or approximately $140 million.As a result of this capital increase, 795,401 new shares will be issued. Crescendo’s consortium will thus secure a 50% stake plus one more share, making it the largest shareholder group. However, among individual shareholders, LY Corporation will maintain its position as the single largest shareholder. The existing number of shares was 795,400. Crescendo plans to utilize its third fund, which raised KRW 1.1 trillion in 2021, to provide the funds by next February.Smooth transitionAlthough the consortium has become the largest shareholder group, there is no indication of an immediate change in LINE NEXT’s current management board. This decision is likely because blockchain development companies should be run by executives who are familiar with the unique ins and outs of the blockchain industry. The firm’s current CEO, Ko Young-su, is an IT expert who had been responsible for financial technology (fintech) operations at LINE Corp.Web3 expansionThrough the investment, LINE NEXT plans to popularize Web3 by expanding its global platform and developing new services. This includes DOSI, a global mobile NFT marketplace app for trading digital products, which will be integrated with LINE’s Japanese NFT marketplace LINE NFT. DOSI’s launch is scheduled for January next year.Navigating uncharted territoryMany believe that LINE NEXT’s ambitions for dominating the blockchain sector aligning with Crescendo’s tradition of investing in promising IT companies is sufficient justification for the major funding decision. However, some observers find the development surprising, considering the fact that it is rare for private equity firms in Korea to make such large investments in blockchain firms — an industry that has mostly been an unpopular choice for investors, likely due to its close association with crypto assets. Indeed, Crescendo’s interest in the company may have been partly driven by the fact that it is more focused on blockchain technology itself rather than crypto.“Crescendo seems to have focused on LINE’s global network, which pushed it to invest in its subsidiary. Considering the popularity of NFTs and other related projects last year, expanding this area of business seems plausible,” said an anonymous source from the investment banking industry. “Peter Thiel [the billionaire entrepreneur and venture capitalist who sponsored Crescendo] is known to have a keen interest in blockchain technology and is actively making investments in the sector, which probably made the decision-making process much smoother.”This development signifies yet another shift in the evolving business landscape, where parts of the industry that have not been traditionally associated with blockchain are increasingly recognizing the potential of its role in the future of industry and technology.