Hana Securities to Accelerate Security Token Platform Development

Midas Investments Founder Launches Locus FinanceIakov Levin, the founder of the recently failed Dubai-headquartered custodial crypto investment platform Midas Investments, has unveiled his latest project, Locus Finance, a DeFi platform.Photo by Shubham’s Web3 on UnsplashStarting overThat’s according to a recent report published by The Block. Locus Finance’s main focus lies in providing connectivity with high-yield tokenized vaults. In its initial stages, the company will introduce three yield-generating products, centered around Ethereum staking, DeFi expansion, and Arbitrum trading.Levin believes that investors are not interested in the intricacies of blockchains, protocols, or daily portfolio management. This is where vaults play a crucial role, catering to the retail yield market and generating profits for retail investors. In a statement Levin said:“Investors don’t want to worry about blockchains, protocols, transaction costs, and daily portfolio management. They need specific exposure in a set-and-forget style. Vaults represent a unique approach necessary for maturing the retail yield market, allowing for optimal wealth generation for retail investors.”With Locus Finance, Levin aims to learn from past experiences and provide a platform that meets the demands of retail investors seeking a more simplified and profitable DeFi experience. The company’s approach centers around yield generation and a seamless user experience, allowing users to focus on their investments without being bogged down by complex technicalities.Midas downfallMidas Investments, established in 2018, had seen significant success as a custodial crypto investment platform which offered yields on a range of digital assets. It managed assets worth over $250 million at its peak in 2021. However, the volatile market conditions in 2022 led to losses exceeding $50 million, forcing the company to close its doors in December 2022.The loss incurred accounted for 20% of the $250 million assets under management (AUM). The platform’s demise followed the collapse of prominent projects like Terra, FTX, and Celsius earlier in 2022. Those collapses prompted Midas Investments users to withdraw over 60% of their assets. That run on the platform rendered its fixed yield model unsustainable.Midas faced total liabilities of $115 million in Bitcoin, ETH, and stablecoins, with assets valued at $51.7 million. At the time of the platform’s collapse, Levin expressed his optimism about future plans. He disclosed plans to introduce an offering that would feature new investment strategies. Fast forward seven months and it appears that those plans have taken shape in the form of this newly-launched Locus Finance platform.However, Locus Finance’s success will be closely monitored in light of the challenges faced by its predecessor. A former Midas Investments customer took to Reddit three months ago to warn people to stay away from the new platform once launched.At that time, Midas Investments management had advised customers of its intention to start over via Lotus Finance. “Users lost tons of money and Midas got away with the bags. . . . I’d recommend staying as far away from them as possible,” the former customer warned.

Hong Kong's spot Bitcoin exchange-traded funds (ETFs) encountered their second day of net outflows since their launch on April 30. According to data published by crypto trading data platform SoSo Value, in excess of 90 BTC exited the Hong Kong ETFs on May 9. The data indicated that China Asset Management's spot Bitcoin ETF observed an outflow of 80.16 BTC, while the Bosera HashKey Bitcoin ETF recorded a lesser outflow of 10 BTC. Meanwhile, Hong Kong’s third spot Bitcoin ETF offered by Harvest Global registered zero flows.Photo by Dmytro Demidko on UnsplashThese daily net outflows follow a trend of net inflows that had developed in the preceding days, with the three ETFs collectively witnessing net inflows of 101.6 BTC on Wednesday and 99.99 BTC on Tuesday. As of Thursday, the three ETFs, managed by ChinaAMC, Harvest Global and Bosera with HashKey, held approximately 4,260 Bitcoin, with total net assets reaching $261.45 million, marking an increase from $247.7 million on the first day of trading. The total trading volume for the three ETFs amounted to $2.06 million on Thursday, a decline from $2.67 million the day prior and a significant drop from the $9.74 million recorded on April 30, according to SosoValue data. This recent outflow represents the second day of net outflows from these products since their launch on April 30.   The initial day of outflows occurred on May 6, with 75.36 BTC flowing out of the products. This marked the first setback for Hong Kong's Bitcoin ETFs following their launch on April 30.  The outflows on that occasion primarily stemmed from the China Asset Management Bitcoin ETF, while other Hong Kong-based products saw no flows. Potential Stock Connect additionMany commentators had expected these Hong Kong-based products to see inflows from mainland China. While that hasn’t materialized yet, Harvest Global CEO Han Tongli said that he doesn’t rule out the addition of its Bitcoin and Ether ETF products to Stock Connect.  Shanghai Hong Kong Stock Connect is a cross border investment channel that would open access to these products to investors that ordinarily invest in and trade products and equities listed within the Shanghai Stock Exchange (SSEC). Tongli made the suggestion to the South China Morning Post (SCMP)  while attending the Bitcoin Asia conference. He suggested that such an addition is a possibility if all goes smoothly over the course of the next two years. U.S. product outflowsIn the U.S., spot Bitcoin ETFs also saw net outflows on Thursday, amounting to $11.29 million. Farside data indicates that the Grayscale Bitcoin Trust (GBTC) witnessed a substantial $43.4 million redemption, marking its largest single-day outflow since May 2, totaling $17.5 billion in outflows overall. BlackRock’s IBIT has now accumulated $15.4 billion in total inflows. Additionally, other top-performing ETFs — Bitwise (BITB), Fidelity (FBTC) and ARK (ARKB) — also experienced inflows. In total, U.S. ETFs have witnessed $11.7 billion in cumulative net inflows.

Malaysia Ushering in Fifth Digital Asset ExchangeKuala Lumpur-headquartered crypto platform Hata has become the latest entrant in the local digital asset exchange (DAX) business, securing licensing and regulation from the Securities Commission Malaysia (SC).The brainchild of David Low, former Asia Pacific General Manager at Luno, Hata Digital Sdn Bhd, is now the recipient of conditional approval from the SC, enabling it to facilitate cryptocurrency trading once it fulfills the regulator’s stipulated requirements over the next six to nine months. The firm now joins Luno Malaysia, MX Global, Sinegy DAX, and Tokenize Technology to become the fifth regulated DAX to trade within the Southeast Asian country.Photo by Esmonde Yong on UnsplashFirst digital brokerOne interesting aspect of Hata’s approval is that it also marks the first DAX to receive digital broker status from the SC. This unique status allows Hata to display trade orders from other exchanges on its website or mobile application, giving users access to a broader spectrum of trading opportunities.Hata can match its users’ trades with those available on other exchanges or provide them with cryptocurrency prices from these exchanges. However, it is essential that the exchanges Hata collaborates with are licensed by authorities in “competent jurisdictions,” such as the Monetary Authority of Singapore (MAS), and gain approval from the SC.Low shared his vision, stating:“With the goal of challenging the existing norms, we plan to make digital assets investing easier for institutional investors, businesses, and high-net-worth individuals in Malaysia. And we look forward to launching the platform soon.”Luno competitorLow’s departure from Luno adds an intriguing dynamic to Malaysia’s digital asset industry, given his pivotal role in expanding Luno’s presence in Malaysia and Southeast Asia. At the time of his departure, Luno was widely acknowledged to have commanded over 90% of the local cryptocurrency trading market share, with some estimating it as high as 98%.Low is now stepping into the realm of competition with his former colleagues and company, where he had previously invested significant effort and resources to foster growth.Hata boasts two other Co-Founders, Darien Ng, Chief Revenue Officer, and Chong Kwai Kun, Chief Technology Officer, both with extensive expertise in blockchain technology and software development in Malaysia since 2018.Low stated that the “SC’s decision to grant us conditional approval to operate a DAX represents a vote of confidence in us and the digital asset industry. This is a significant milestone for my team and I at Hata, after months of extensive efforts.”One-stop crypto platformHe continued: “Hata wants to enable safe and effortless cryptocurrency access and we look forward to being a one-stop and reliable platform for our customers, with our suite of products and services.”Low emphasized their goal of challenging existing norms, making digital asset investing more accessible to institutional investors, businesses, and high-net-worth individuals in Malaysia.The exchange’s founder also commended the SC’s efforts in expanding the regulated market operator framework to allow DAXs to operate as digital brokers. In addition, Hata has obtained a money broker license from the Labuan Financial Services Authority, reinforcing its efforts to operate as a compliant and secure platform.