Zkrypto Partners with LG CNS to Develop Blockchain-Powered Business Models

Earlier this month, CoinNess reported on a flurry of Asian companies who had announced plans to add crypto to their balance sheets. That trend continued this week with two Chinese companies announcing similar plans. In a press release published on June 24, Aurora Mobile, a marketing technology firm based in Shenzhen, announced its intention to begin to invest in digital assets. The Nasdaq-listed company (JG) outlined that its Board of Directors had approved the investment of up to 20% of the firm’s cash and cash equivalents in various digital assets in a strategic initiative involving Aurora Mobile’s treasury management.Photo by Traxer on UnsplashGaining exposure to emerging asset classIt described the initiative as an example of the company’s “commitment to innovative treasury practices,” focusing on long-term value creation for Aurora Mobile’s shareholders. The firm’s CEO, Weidong Luo, said that the initiative will enable the company to diversify its portfolio, “gaining exposure to an emerging asset class with low correlation to traditional markets.” Luo also asserted that the move would demonstrate that the firm is “aligning with the technological advancements reshaping global finance.” Aurora Mobile indicated that it would look to purchase Bitcoin, Ethereum, Solana, Sui and other tokens. China’s crypto trading banA trading ban on crypto was introduced in mainland China in 2021. With that, it’s unclear how Aurora Mobile will establish its crypto treasury. It may opt to do so through Singapore-based subsidiary EngageLab or through an affiliated corporate entity in Hong Kong. No such ban applies in Hong Kong, where VMS Group, another company which has decided to invest in digital assets, is headquartered. VMS Group is a family office which provides investment solutions and advisory services, while specializing in alternative investments.  According to a report published by Bloomberg on June 23, the company, which has $4 billion worth of assets under management (AUM), intends to allocate up to $10 million to investment strategies run by a decentralized finance (DeFi)-focused hedge fund, Re7 Capital. VMS Group managing partner Elton Cheung told Bloomberg that the investment decision was taken as part of an effort to diversify into more liquid investments. Cheung added: “We thought this was the right time [to invest in digital assets] because of growing demand and because we see clearer legislative and government support from various jurisdictions, as well as large institutional support and endorsement.” Potential partnershipsVMS Group executive Zhi Li, who has been tasked with leading digital asset investments for the company, said that the firm is examining potential partnerships with blockchain payments and infrastructure projects. Li stated that “there is very strong institutional and family interest in getting regulated digital asset exposure,” adding that VMS has “seen the younger generation of families wanting to do something different.” Alongside these investments into cryptocurrencies, demand for crypto-related stocks in Hong Kong is also surging. Shares in publicly-listed licensed digital asset platforms in the Chinese autonomous territory surged by as much as 200% on June 25 as the market reacted positively to the city’s developing digital assets policy.

Chinese City Unveils Plan to Develop MetaverseThe city of Zhengzhou in China recently announced a set of policy proposals aimed at supporting the growth and development of metaverse companies in the region. These initiatives, introduced by the municipal government, include the establishment of a dedicated fund worth 10 billion yuan ($1.42 billion) to facilitate the advancement of the metaverse industry.Photo by Jéan Béller on UnsplashDraft policy proposalsAccording to the government’s draft which was published on Wednesday, metaverse companies that choose to relocate their headquarters to Zhengzhou will have the opportunity to receive a startup capital investment of up to 200 million yuan ($28.34 million). In addition, these companies will be eligible for various other benefits, such as rent subsidies, to help facilitate their operations.It’s worth noting that the policy extends beyond companies with headquarters in Zhengzhou. Any company engaged in metaverse-related use case development within the city, regardless of their headquarters location, can apply for funding. Projects certified as viable by the municipal government can receive up to 5 million yuan ($710,000) in financial support.While the specific date for fund allocation has not been disclosed yet, the municipal government of Zhengzhou has outlined its long-term vision for metaverse development in the city. It anticipates that metaverse-related industries in Zhengzhou will generate an annual revenue exceeding 200 billion yuan ($28.34 billion) by the end of 2025.Stimulating metaverse developmentThese policies apply to local enterprises operating in two distinct areas. Firstly, research endeavors focused on metaverse-related technologies, such as virtual reality, augmented reality, and brain-computer interfaces, are eligible for support. Secondly, the utilization of metaverse technologies in real-world industries, including education, entertainment, and commerce, can also qualify for funding.In addition to the dedicated fund, the government of Zhengzhou plans to collaborate with other governmental agencies and investment firms to secure an additional 50 billion yuan ($7.08 billion) in funding. This funding will be allocated to support various metaverse-related development projects. Furthermore, the city intends to provide cash rewards to metaverse companies upon their listing on China’s primary stock exchanges, aiming to incentivize growth and market participation.The comprehensive plan encompasses crucial technologies in the metaverse industry, such as blockchain, next-gen computer rendering, human-computer interfaces, and artificial intelligence. Furthermore, it strives to establish a digital asset market leveraging non-fungible token (NFT) technology.Broader metaverse strategyZhengzhou joins a growing list of Chinese cities and provinces that aspire to become leaders in the country’s metaverse development. The metropolis of Shanghai, located in the southeastern region, is actively pursuing its own metaverse aspirations. It predicts that its metaverse industry will achieve annual revenues of 350 billion yuan ($49.6 billion) by the year 2025.Elsewhere in China, there has been plenty of activity relative to Metaverse development. Zhengzhou belongs within Henan Province, and at a provincial level, administrators established a metaverse fund earlier this month. Around the same time-frame, Alibaba Cloud, the cloud division of the Chinese e-commerce giant, partnered with layer one blockchain project Avalanche with a view towards creating a metaverse launchpad.As the metaverse continues to evolve and gain prominence worldwide, it will be intriguing to observe the progress and impact of the policies implemented by Chinese cities like Zhengzhou. The concerted efforts to foster metaverse development reflect a broader global trend of recognizing the significance of virtual environments and their potential to reshape various aspects of society.

Singapore Regulator Awards CMS License to AsiaNextAsiaNext, a joint venture between Tokyo-based financial services company SBI Digital Asset Holdings and Switzerland’s SIX Group AG, has received regulatory approval for its institutional-grade digital asset exchange in Singapore. The Monetary Authority of Singapore (MAS) granted AsiaNext an in-principle approval for a Capital Markets Services (CMS) license, marking a significant milestone for the company.Photo by Davis Sánchez on PexelsTaking to LinkedIn last week, the firm said that the achievement is a testament to the efforts it has made in terms of rigorous regulatory compliance. With this CMS license, AsiaNext is poised to become a trusted digital asset exchange catering specifically to institutional investors in Asia and globally. The joint venture, which was finalized in September 2021, brings together the expertise and networks of SBI Digital Asset Holdings and SIX Group AG to meet the growing demand for trading public and private digital assets.Singapore-based joint ventureChong Kok Kee, appointed as the CEO of AsiaNext in March 2022, and Neil Thomas, serving as the Chief Commercial Officer, lead the team. Their combined experience in the financial industry positions AsiaNext to deliver a comprehensive suite of services that meet the rigorous standards of institutional investors.The primary goal of AsiaNext is to bridge the gap between traditional finance and the digital asset space. Chong emphasized the importance of a secure, transparent, and compliant platform that instills confidence in market participants during an interview with Hubbis in 2022. The exchange aims to provide integrated listing, trading, and post-trade services for various digital assets, including digital payment tokens.AsiaNext recognizes the increasing demand for trading digital assets among institutional investors. To address this demand, the joint venture will leverage the extensive networks and expertise of SBI Digital Asset Holdings in Asia and SIX Digital Exchange in Switzerland and Europe. Both partners have already demonstrated their leadership in global digital asset markets through investments, issuances, and initiatives.By securing the CMS license, AsiaNext, which is based in Singapore, has taken a crucial step towards becoming a trusted platform for institutional investors in Singapore and beyond.SBI partnershipsFor its part, SBI has favored joint ventures and partnerships when it comes to its increasing involvement in the digital assets space. It has entered into a joint venture with Zodia Custody, a digital assets custodian which has been spun up by UK-based financial services giant Standard Chartered, to take on the Japanese market. Additionally, it has increased its shareholding in the custodian in recent months.Its crypto exchange subsidiary, SBI VC Trade, recently formed a partnership with the project team behind the XDC Network blockchain with a view towards making inroads into the Japanese market.AsiaNext is now focused on preparing for the launch of its digital asset exchange, which is scheduled to commence later in 2023. Having now established itself on a firm regulatory footing, and the support of its strategic partners, AsiaNext appears to be well-positioned in meeting the evolving needs of institutional investors in the Asian region.