Former SoftBank Executive Launches Stablecoin in Abu Dhabi

India Blockchain Week (IBW) 2024 was held on Dec. 4-5 in Bangalore with venture capital and blockchain advisory firm Hashed Emergent presenting a report at the event, with positive findings with regard to India’s Web3 sector. Titled “India's Web3 Landscape 2024 Report,” the research was presented at IBW 2024 by Hashed Emergent Senior Associate Sharanya Sahai. Photo by Asif Methar on PexelsGlobal frontrunnerThe report claims that the Web3 ecosystem in India has risen to the point where it is a global frontrunner when its progress is measured against Web3 development internationally. A broad network of Web3 startups has emerged, comprising of over 1,000 fledgling businesses.  Those enterprises are being supported in India by global investment, with Indian Web3 businesses having secured funding in excess of $3 billion since 2020. Taking a more recent snapshot, the report outlines that from January to September 2024, Indian Web3 startups received investment funding to the tune of $462 million, an 82% growth compared with the same period last year. These startups are spread across finance, infrastructure and entertainment niches within Web3, although the study found that the bulk of investment funding was placed with Web3 infrastructure businesses.  Home to 12% of Web3 developersHashed Emergent claims that India is home to 12% of the global pool of Web3 developers, second in the rankings on this metric with the greatest number of such developers living in the United States. However, the report maintains that India is in line to surpass the U.S. relative to the Web3 developer metric by 2027. The world’s most populous country also has strength and depth in terms of Web3 founders. It ranks third globally in terms of the overall size of its Web3 founder base. The Hashed Emergent report suggests that Indian founders, accounting for 5.4% of global Web3 startups, are responsible for driving growth in India relative to AI, decentralized physical infrastructure networks (DePIN) and scaling solution projects. Stand-out examples of Indian Web3 enterprises include exchange platforms CoinSwitch, WazirX and CoinDCX, crypto developer integration toolkit provider Transak, blockchain scaling platform Polygon, blockchain-based AI startup Sentient and blockchain protocol Biconomy. Hashed Emergent singled out Sentient and Web3 infrastructure platform Avail Network as projects which have showcased “India’s growing influence in decentralized technologies” in 2024. Adoption challengesThe report points to what Hashed Emergent terms as “an undeniable picture of India’s dominance in global crypto adoption.” That finding falls in line with a report produced by Chainalysis earlier this year, establishing India as the global leader in crypto adoption according to data it compiled.  However, in an opinion piece written by Mithil Thakore recently, an Indian co-founder and CEO of Dubai-based Velar, a Bitcoin liquidity protocol, Thakore claims that there is a disconnect between such metrics and the reality of adoption on the ground in India. In the case of the Chainalysis adoption index, the Velar CEO suggests that a “mirage of adoption” is presented, with massive signup numbers not translating into tangible active participation in the market.  While adoption rates are high, he feels that a greater level of active participation is being prevented due to what he terms as an “ambiguous” stance on cryptocurrencies by the Indian government. Regulatory ambiguity puts uncertainty in the minds of investors, holding back the industry’s growth, Thakore claims. 

Korea Fintech Industry Association Establishes Council for Security TokensThe Korea Fintech Industry Association (KORFIN) has recently held a successful kickoff meeting to launch the Fintech Council for Security Tokens. Comprised of 18 members specializing in security token-related fields, including blockchain technology and fractional investments, the council aims to expand its membership by inviting more enterprises interested in security token projects.Current participants in the council include The Seed Partners, a venture capital firm; Lucentblock, a blockchain-based real estate securities platform provider; and Leadpoint System, a blockchain tech developer.Photo by Ethan Brooke on UnsplashActivities for ecosystem growthThe purpose of the council is to foster the growth of the security token ecosystem by undertaking various activities. These activities encompass engaging in discussions to strengthen the security token industry, conducting research on policy development, and seeking expert consultations.Promoting innovationLee Keun-ju, the President of KORFIN, expressed the association’s commitment to supporting fintech companies in realizing their innovative ideas in the industry. In line with this commitment, KORFIN will organize a range of events, including educational courses and seminars, to facilitate knowledge sharing and enable fintech companies to establish valuable business network connections.Growing enthusiasmSince the Korean Financial Services Commission (FSC) authorized the issuance and trading of security tokens in February, the interest in security tokens has gained momentum within the country. This growing enthusiasm aligns with the global trend, as highlighted in a 2022 report by Boston Consulting Group (BCG) and Singaporean investment platform ADDX, which projected that the global market for illiquid tokenized assets would hit $16 trillion by 2030.

The first tranche of spot Bitcoin and Ether exchange-traded funds (ETFs) have been officially approved to start trading in Hong Kong on April 30. Announcement from regulatorHong Kong’s Securities and Futures Commission (SFC) announced the official approval of the first batch of spot Bitcoin and Ether ETFs on April 24 via a press release seen by CoinTelegraph. The regulator first provided outline approval for these products on April 15. Additionally, some of the fund management firms themselves have come out to outline product trading commencement at the end of the month. The first batch of approved Hong Kong-based ETFs include China Asset Management’s (ChinaAMC) Bitcoin and Ether-based ETFs.  In a press release, the firm verified that its products will begin trading on April 30. HashKey Capital and Bosera Asset Management have partnered to offer similar spot products. A spokesperson for HashKey told Bloomberg that they’re ready to commence trading of the product at the end of the month.Photo by Ruslan Bardash on UnsplashIn-kind vs. cash-only approachHarvest Global Investments is the third fund manager that intends to launch such a product offering. The launch of these three spot Bitcoin and Ether-based ETFs on April 30 signals a new era for digital asset investment in Hong Kong. Unlike their counterparts in the U.S., which rely on a cash creation model, these ETFs in Hong Kong embrace an in-kind creation mechanism. This approach holds the potential to significantly boost assets under management (AUM) and trading volume, as highlighted by Bloomberg ETF analyst Rebecca Sin. The unique dynamics of Hong Kong's ETF creation model present an opportunity for market growth and innovation, positioning the region as a key player in the global digital asset landscape. By providing a regulated framework for retail and institutional investors, along with the ease of converting digital assets into fully regulated ETFs, ChinaAMC aims to cater to a growing demand for such offerings. China Asset Management’s Head of Digital Assets, Thomas Zhu, emphasized in the firm’s press release the in-kind creation feature. Potential fee warAs the ETF market in Hong Kong gains momentum, competition could result in downward pressure on fees. With issuers vying to offer the most competitive fees to attract customers, the stage is set for a potential battle of pricing strategies. Harvest, for instance, has already entered the fray with a full fee waiver and the lowest fee at 0.3% after the waiver, Bloomberg ETF analyst James Seyffart outlined on the X social media platform. This competitive landscape bodes well for investors, with fees for the first ETFs proving to be lower than expected, as noted by Eric Balchunas, senior ETF analyst at Bloomberg. All eyes will be on the performance and impact of these financial products relative to the crypto market in the Asian region and further afield.