UAE’s RAK DAO Partners with HBAR Foundation to Support Web3 Startups

SBINFT, a Web3 subsidiary of the Japanese financial giant SBI Holdings, is launching a proof-of-concept experiment in collaboration with Obayashi Corporation, a major Japanese construction firm. The initiative, scheduled to run from Feb. 1 to Feb. 28, 2026, aims to test whether non-fungible tokens (NFTs) can drive user engagement and support community development. According to a press release distributed via PR Times, the project will use SBINFT Mits, the company’s NFT marketing platform, within the framework of Minmachi SHOP, a platform operated by Obayashi. Minmachi SHOP allows users to vote on, book, and purchase various goods and experiences—ranging from prepared meals to workshops—hosted in temporarily reserved spaces within offices and nearby buildings.Photo by Andrey Metelev on UnsplashPolygon-based NFTs underpin membership systemThe upcoming experiment introduces a blockchain-based membership system to this ecosystem. Users will create accounts on SBINFT Mits and receive a membership card NFT issued on the Polygon blockchain. This digital asset will serve as a dynamic record of their engagement within the Nakanoshima–Yodoyabashi area. During the trial, users can increase their membership rank through activities like utilizing services offered through Minmachi SHOP and inviting new users to the platform. These interactions are recorded as metadata on the blockchain. The companies aim to evaluate whether this on-chain data—stripped of personally identifiable information—can serve as an objective metric for community development. While specific incentives are still being finalized, higher membership ranks may unlock benefits such as discounts, access to exclusive services, or invitations to restricted events. EXPO2025 legacy program seeds partnershipThe partnership emerged from the MUIC Innovation Co-Creation Program, an initiative organized by MUIC Kansai, a foundation established by Mitsubishi UFJ Financial Group and MUFG Bank. Designed as a hub for the EXPO2025 legacy, the program connects diverse stakeholders to foster social implementation platforms. Obayashi joined the program to explore how Minmachi SHOP could support community initiatives based on local demand. Simultaneously, SBINFT sought partners to test NFTs as incentives for sustained user engagement. Through program discussions, the companies identified NFT-based gamification as a potential mechanism to connect local governments, developers, and residents. The collaboration comes amidst a broader push by SBI Holdings into the digital asset space, even as executives voice concerns over Japan’s regulatory environment. In December, Tomoya Asakura, CEO of SBI Global Asset Management, criticized the slow pace of Japan’s cryptocurrency tax reform. According to DL News, Asakura warned on X that Japan risks falling behind jurisdictions like the U.S., Asia, and the Middle East due to a tax regime that levies up to 55% on crypto profits and prohibits loss carryovers. Although the Financial Services Agency (FSA) has signaled its intent to reclassify crypto as an investment vehicle—potentially lowering the tax rate to a flat 20% in line with traditional assets like stocks—legal amendments are not expected to take effect until 2028, reflecting the time required to revise relevant laws and government ordinances. As Japan’s regulatory framework around crypto continues to evolve, SBI continues to expand its Web3 footprint. Asakura’s comments came after reports that SBI Holdings plans to launch a yen-backed stablecoin in the second quarter of this year through a partnership with Startale. Together with Sony Group, Startale established a joint venture called Sony BSL to launch Soneium, a public Ethereum layer-2 network. However, the conglomerate is also recalibrating its portfolio. In September, Bloomberg reported that SBI Zodia Custody, a joint venture with Standard Chartered’s Zodia Custody, would discontinue operations. The decision to close the venture, which was split 51% to 49% between SBI and Zodia respectively, was described by a Zodia executive as a strategic alignment rather than a withdrawal. An SBI spokesperson confirmed that the dissolution was an effort to generate greater collective impact across the company's digital ecosystem, rather than a retreat from crypto custody services. 

Korean Crypto Expert Claims NFTs and Security Tokens Shouldn’t Be a Priority for Investors YetAlthough there has been a lot of speculation recently regarding the prospects of non-fungible tokens (NFTs) and security tokens as lucrative investment opportunities, these topics should not be of concern yet, said Kim Dong-hwan, CEO of Korean crypto consulting firm Wonder Frame, at Tuesday’s 2023 FNTimes Investment Forum hosted in Seoul by the Korean Financial Times.Photo by Markus Winkler on UnsplashFrom a price-to-earnings perspective, these types of investments should not be of priority to the average investor, Kim said, stating that this argument is rooted in historical context. Bitcoin, the kingpin of cryptocurrencies, had its first breakthrough in 2012 when its price was around $13. Since then, its value has skyrocketed nearly 2,000 times. Those who profited from Bitcoin then went on to invest in Ethereum, the second-largest cryptocurrency by market capitalization. Ultimately, the money earned from Bitcoin was constantly circulating in the crypto market.Grappling for liquidityHowever, Bitcoin’s liquidity — the frequency at which assets are bought and sold, which can be deemed the most important aspect of investing in and trading cryptocurrencies — is currently down. Liquidity in the crypto market usually flows in order from Bitcoin first, to altcoins, then to NFTs, Kim explained, because investments in NFTs are made by people who hold cryptocurrencies, not Korean won. Therefore, NFTs, which have now experienced more than a 90% decline from their peak, must depend on Bitcoin’s price recovery for their own resurgence.Securing liquidity for security tokens is also difficult, considering the fact that while these assets share common characteristics with cryptocurrencies, they are subject to strict regulatory oversight by financial authorities such as the Korea Exchange. Therein lies the difficulty in forecasting the prospects for security tokens.Kim thus questioned whether there would be market makers or liquidity providers that would be willing to boldly step into the role of satisfying the market, given the close scrutiny of authorities such as Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS). Although crypto exchanges like Upbit act as market makers by facilitating daily trading worth trillions of won, speculation suggests that securities firms that are responsible for supplying security token liquidity may find it challenging to do the same.Weak investments and negative perceptions of DeFiAnother concern for security tokens is fractional investments, which tend to be concentrated on assets of lower value. “Security tokens are fundamentally about dividing underlying assets and then selling them. However, in many cases, these underlying assets are of lower value or have no choice but to be traded this way,” Kim said.Kim also mentioned the regulatory hurdles hindering decentralized finance (DeFi) in general, despite its reputed appeal. “DeFi is perceived by international organizations like the Financial Stability Board (FSB), the US Federal Reserve System, and the European Union (EU) as a public enemy that causes financial instability in the real world,” he said.Taking all these factors into consideration, Kim recommended against investing in security tokens or NFTs at this time, given the current situation where even Bitcoin’s liquidity is at an all-time low. He suggested that, with market interest rates approaching 5%, unless there is a specific need to invest in virtual assets, it may be better to explore investment options positioned for higher interest rates.Kim is an industry expert who has previously written articles for crypto news site CoinDesk Korea for four years and has taken on the role of Chief Business Development Officer (CBDO) at Blitz Labs, a virtual asset research firm. He founded Wonder Frame in 2022, where he currently works as a professional consultant.

Former Coinbase Japan CEO Joins Fidelity-Backed VCWell-known investment firm Eight Roads Ventures has recruited the former CEO of Coinbase Japan to join them as a partner within the firm.Eight Roads Ventures, a prominent investment firm backed by Fidelity with assets worth over $11 billion, has announced the hiring of Nao Kitazawa as a venture partner. Kitazawa brings a wealth of expertise and experience garnered at Coinbase Japan and elsewhere in the digital assets industry to the firm.In a recent LinkedIn post, Kitazawa expressed his excitement about joining Eight Roads Ventures to pursue his passion for fintech and Web3. He acknowledged the firm’s successful track record of supporting innovative and disruptive companies and considered it an honor to be part of such an organization.Photo by Marten Bjork on UnsplashCoinbase exited JapanKitazawa’s tenure at Coinbase Japan came to an end earlier this year, coinciding with Coinbase’s decision to exit the Japanese market due to prevailing “market conditions.” His appointment at Eight Roads Ventures indicates the increasing interest and involvement of Fidelity, the firm’s backer, in the cryptocurrency space.Fidelity has been making significant strides in the crypto industry. EDX Markets, a crypto exchange backed by Fidelity, recently announced its launch despite regulatory challenges from the United States Securities and Exchange Commission (SEC) and a bearish market environment.TradFi heavyweight in cryptoFidelity is probably the standout heavyweight firm from traditional finance which has stepped foot in the crypto space from early on. It has done so through Fidelity Digital Assets, its crypto arm. The subsidiary company quietly rolled out its trading platform this year, providing millions of users with commission-free trading of bitcoin and ether. Additionally, Fidelity has been expanding its crypto research team, demonstrating its commitment to the industry.Headquartered in Bermuda, Eight Road Ventures positions itself as a global venture capital firm that helps entrepreneurs scale. It backs and partners with game-changing technology and healthcare companies, with a presence in China, Europe, India, and Japan.Eight Roads has also been actively investing in various crypto startups, including Fireblocks and Kaiko. Kitazawa’s appointment is expected to bring significant value to the firm’s portfolio, leveraging his knowledge and insights gained from working in the cryptocurrency sector.Originally known as Fidelity Ventures, Eight Roads Ventures has been involved in investments since 1969, initially operating out of Boston. Recently, it launched a $350 million technology investment fund in China and a $250 million healthcare and life sciences fund in India, demonstrating an interest in pursuing emerging opportunities in Asia.Shifting strategic focus overseasWith the addition of Nao Kitazawa as a venture partner, Eight Roads Ventures reinforces its position as a leading investment firm with a keen interest in the evolving landscape of fintech, Web3, and cryptocurrencies. It’s likely that the firm recognizes what way the regulatory winds are blowing, and with that, it’s bringing on board someone of Kitazawa’s caliber, with expertise outside of the US.Against the backdrop of a currently adverse regulatory environment in the US, earlier this month US VC giant Andreessen Horowitz (a16z) opened its first international office in London, in what many perceived to be a move towards a more regulatory progressive environment relative to the emerging digital assets sector.