Chinese Subsidiary of DBS Bank Launches e-CNY Product Offering

Crypto custodian Korea Digital Asset (KODA) has seen its custody assets exceed the $6 billion mark, equivalent to about KRW 8 trillion, according to game media outlet Kyunghyang Games.  Established in November 2020 through a collaboration between KB Bank, the blockchain venture capital firm Hashed and blockchain tech company HatchLabs, KODA provides custodial services for crypto assets. A custodial service provider refers to a third-party institution that manages virtual assets on behalf of clients. Several big banks overseas such as Goldman Sachs and Citibank provide asset custodial services. Photo by Chris Liverani on UnsplashA leading provider of crypto asset custodial services Having been offering one-stop crypto asset custodial services for companies and institutional clients since March 2021, KODA has become a notable virtual asset business operator in South Korea with it being registered with the Financial Intelligence Unit (FIU). By the end of June 2023, KODA made up nearly 80% of the local custodial service market share, per FIU data. At the time, out of the total KRW 2.9 trillion in crypto assets held by 49 local custodial service providers registered with the FIU, KRW 2.3 trillion was managed by KODA. By December 2023, KODA announced it was managing KRW 8 trillion in crypto assets, with over 200 custodial wallets and about 50 institutional clients using its services.  Bracing for the potential approval of spot bitcoin ETFs in KoreaThe demand for crypto asset custodial services is expected to rise as Korea’s ruling and opposition parties are pledging to integrate crypto assets into the traditional financial system, leading up to the general election in April. Major political parties are considering the possibility of allowing transactions of spot bitcoin ETFs and legalizing investment in crypto assets by private companies. Cho Jin-seok, CEO of KODA, said that the integration of digital assets into the traditional financial system is an unstoppable global trend that no one can resist, and that KODA will be able to serve as a key crypto infrastructure if the local financial authority approves trading spot bitcoin ETFs.  Kim Seo-joon, CEO of Hashed, stressed the significance of preparing for the potential approval of spot bitcoin ETF transactions, noting how a number of spot bitcoin ETFs were released in the U.S. right after the approval. He added that KODA’s commitment to regulatory compliance and technological expertise would make it an essential partner in introducing virtual asset ETFs to the local market.

OK Group Retires ‘Okcoin’ BrandIn a move to streamline its crypto ventures, cryptocurrency exchange operator OK Group is rebranding its platforms under the single name “OKX.”The announcement was made by Hong Fang, President of OK Group’s Seychelles-registered exchange OKX, via a thread on X (formerly Twitter) on Monday.Photo by Kelly Sikkema on Unsplash‘Okcoin’ to ‘OKX’ global rebrandFounded in 2013, Okcoin will be undergoing a name change to “OKX,” aligning with OK Group’s overarching branding strategy. Hong Fang expressed her personal connection to Okcoin, stating:“I’ve been part of Okcoin for five years. Over the years, we have put a lot of love and passion into our brand and product.”She emphasized that this rebranding effort, beginning in Singapore, will extend to Europe and the United States in the coming months, ensuring consistency across key operational jurisdictions. Despite the name change, OKX maintains that customers can expect the same high-quality services within the same regulatory framework under the new brand. Providing the rationale for the change, Hong Fang went on to state:”We also believe it’s time for a change. Rebranding to OKX in our key operational jurisdictions will be great for our customers and business. I’m very excited about what to come next.”Previous rebranding activityFang also revealed that OK Group has already sunsetted the “Okcoin” brand and product in several regions, including Latin America, the Middle East and North Africa, South Asia, Hong Kong, and others. This transition aims to create a unified and recognizable identity for the group’s crypto ventures.The United States holds particular significance for OK Group’s global strategy, and the company remains committed to that market. Fang acknowledged the unique challenges encountered in the US but expressed the company’s dedication to empowering individuals and protecting freedom through technology within the US market. She stated: “It is home base for a lot of us on our team. It is special to us.”OKEx rebrandThis rebranding news comes approximately one year after OK Group initiated a similar transition with its subsidiary, formerly known as OKEx. In December 2022, OKEx transformed into “OKX,” expanding its scope beyond being a centralized crypto exchange. The move aimed to embrace DeFi, non-fungible tokens (NFTs), and Web3. OKEx, founded by OK Group CEO Star Xu in 2017, had played a significant part in terms of innovation in the cryptocurrency space during that time.OK Group’s decision to rebrand its crypto ventures under the unified name “OKX” signifies a strategic shift toward creating a more cohesive and streamlined brand presence in the global crypto market. The transition stands out as yet another iteration in the development of global crypto platforms within an ever-changing crypto ecosystem. As Hong Fang put it, “Okcoin was started almost 10 years ago.” . . . “We have been unequivocally investing in our Okcoin team and infrastructure ever since.”

Zodia Custody Expands to Hong Kong to Meet Asian Institutional DemandZodia Custody, the crypto arm of British banking conglomerate Standard Chartered, is extending its digital asset custody services to financial institutions in Hong Kong, making further in-roads in terms of the company’s Asia-Pacific expansion.News of the expanded offering came via a CNBC report published on Sunday. Launched in 2020, Zodia Custody was founded to address the growing institutional demand for secure crypto asset storage, making Hong Kong a strategic addition to its service areas alongside its recent foray into the Australian market.Photo by Emily Xie on UnsplashAsia-Pacific expansionCurrently, only two companies, OSL Digital and HashKey, have obtained licenses from the Securities and Futures Commission (SFC) to operate within Hong Kong’s regulated crypto space. In its initial phase of operations in Hong Kong, Zodia Custody intends to offer a limited range of crypto assets to its institutional clients, aligning with its commitment to prudent expansion.Zodia Custody’s expansion into Hong Kong follows a series of moves into other key Asia-Pacific (APAC) markets, including Japan, Singapore, and Australia. Moreover, the company remains open to potential partnerships and clientele from regions beyond its current operational footprint.Earlier this month, Zodia Custody made headlines in Australia with the introduction of SAF3, a digital asset custody platform tailored specifically for institutional clients. SAF3 boasts bank-grade cold wallet storage accessible in real-time, complemented by advanced risk management and fraud detection capabilities. Julian Sawyer, the CEO of Zodia Custody, emphasized the importance of responsible institutional adoption, a significant step as Australia’s digital asset industry continues to mature.Institutional demand in Hong KongIn response to the surging institutional interest in crypto assets, Zodia Custody is capitalizing on this market trend, recognizing that Hong Kong’s demand for crypto services is predominantly institutionally driven. Sawyer underlined the unique character of the Hong Kong crypto market compared to other regions, where retail consumers often dominate trading activities. The confluence of institutional demand and Zodia’s specialized services positions Hong Kong as an ideal market for the company’s expansion.Notably, Hong Kong has demonstrated a more crypto-friendly stance compared to its neighboring China, which has taken a stricter approach with crypto bans. Earlier this year, Hong Kong’s SFC introduced a regulatory framework that allows companies to register and provide regulated crypto services. In light of these developments, Zodia Custody is in talks with both the SFC and the Hong Kong Monetary Authority to secure regulatory approval within the financial district.Julian Sawyer articulated this opportunity, stating:“The Hong Kong government and the regulators see digital assets as the future and also want Hong Kong to be a hub.” These discussions are poised to pave the way for Zodia Custody to operate within a well-regulated environment.Standard Chartered has been making in-roads into the Asian market, largely through its Singaporean subsidiary SC Ventures. Zodia Custody launched in Dubai in June and in Singapore last month.However, it is not just progressing solely in the Asia-Pacific region. Recently, Zodia Markets, another Standard Chartered subsidiary, achieved registration as a Virtual Asset Service Provider (VASP) with the Central Bank of Ireland. In September, Zodia Markets also made significant strides in the Middle East and Africa by securing In-Principle Approval from the Abu Dhabi Global Market.