Regional Chinese City Enables e-CNY Bus Fare Payments

Standard Chartered Muscling Into Asian Crypto SpaceUK banking giant Standard Chartered is making a concerted foray into the Asian crypto sector through its Singapore-based subsidiary, Standard Chartered Ventures.Photo by Kirill Petropavlov on UnsplashTargeting institutional businessThat’s according to a report by Nikkei Asia on Tuesday. It’s believed that the company is positioning itself as a trusted choice for institutional cryptocurrency clients amid the backdrop of digital token price volatility and recent upheavals in the industry. The move will pit the British bank directly against global crypto exchange Binance in key Asian markets, specifically Singapore and Japan.Rene Michau, the Global Head of Digital Assets at Standard Chartered, emphasized what he considers to be the bank’s unique advantage in the digital asset space, stating:“As regulated banks, we have a fairly deep infrastructure around risk, conduct compliance, and the activities that go along with crypto assets.”This solid infrastructure includes established risk frameworks, governance structures, and compliance tools that Standard Chartered is keen to bring into the cryptocurrency sphere, thus making it an attractive option for its clients.Zodia Custody and Zodia MarketsStandard Chartered’s substantial involvement in the cryptocurrency market is channeled through its majority ownership of Zodia Custody, responsible for safeguarding digital assets, and Zodia Markets, a crypto exchange tailored for institutional clients.Both entities have been making significant progress in bringing their offerings to market in recent months. Zodia Custody recently launched its services in Singapore, offering a secure solution for financial institutions to manage their crypto holdings. Last month it launched a crypto staking product targeted at institutional clients.In the same month, Zodia Markets achieved in-principle approval to trade as a broker-dealer in the United Arab Emirates. Zodia Custody has also been successful in the UAE, launching its crypto custodian service in Dubai in May.Japan and SingaporeThis concerted effort by Standard Chartered follows a broader trend where traditional financial institutions, such as DBS Group Holdings in Singapore, are entering the cryptocurrency market, capitalizing on the challenges faced by younger crypto players in proving their credibility.Binance rebranded its Binance Custody unit as Ceffu and expanded its offerings for corporate customers in Singapore. While Binance asserts the independence of Ceffu, the exact nature of their capital relationship remains undisclosed.A parallel competition is unfolding in Japan, where Binance Japan has entered the market and Standard Chartered’s Zodia Custody has formed a joint venture with SBI Digital Asset Holdings, targeting institutional clients.While Standard Chartered has achieved a lot through its crypto-focused subsidiaries in a short space of time, there’s always room for improvement. In June, Hong Kong’s banking regulator singled out Standard Chartered alongside HSBC, appealing to both banking groups to make greater efforts to bank crypto clients within the Chinese autonomous territory, as it looks to compete with Singapore in becoming a regional crypto hub.The cryptocurrency sector has witnessed increased scrutiny as virtual currencies like Bitcoin and Ether have gained popularity. The rise of digital token exchanges, each vying for custody of assets belonging to investors who have embraced cryptocurrencies, has sparked concerns about corporate governance and security.Giants in traditional finance, like Standard Chartered, are stepping in to offer institutional investors a safer path to engage with virtual assets while leveraging the trust associated with established brands.

HSBC Expands Offering to Include Crypto ETFs in Hong KongThe Hong Kong and Shanghai Banking Corporation (HSBC), the largest bank in Hong Kong, has reportedly introduced its first cryptocurrency services for local customers.According to journalist Colin Wu’s tweet on Monday, HSBC now allows its customers to buy and sell Bitcoin-based exchange-traded funds (ETFs).Photo by Cheung Yin on UnsplashOffering three crypto ETFsHSBC’s cryptocurrency services specifically focus on the cryptocurrency ETFs listed on the Stock Exchange of Hong Kong. Currently, the exchange offers three crypto ETFs, including CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF.The introduction of these services will provide Hong Kong users with more exposure to cryptocurrencies. As of March 2022, HSBC Hong Kong had approximately 1.7 million active mobile customers, with about 95% of all retail transactions processed online. Plenty of the customers that currently access TradFi financial services don’t touch crypto-native products. Bridging this gap and bringing crypto to a more traditional financial services client base is a major step towards mass market adoption of crypto.Educating the marketIn addition to the roll-out of cryptocurrency services, HSBC reportedly launched the Virtual Asset Investor Education Center. The initiative is designed to protect investors from cryptocurrency-related risks by requiring them to read and confirm educational materials and risk disclosures before investing.The Virtual Asset Investor Education Center is accessible through HSBC’s virtual asset-related products, such as the HSBC HK Easy Invest app, HSBC HK Mobile Banking app, and online banking.This is also a significant step forward. It’s entirely valid that while there are good actors in the crypto space, the sector has also had a lot of sharp practice that reflects badly on it. This alone may be reason enough for many conventional investors not to touch digital assets. Their trust in a platform like HSBC will allow them to include crypto within their portfolios.The second aspect to that reluctance is rooted in a misunderstanding of digital assets, the risks involved, and how risk can be minimized. HSBC has clearly identified this by taking the initiative and launching its Virtual Asset Investor Education Center.Crypto ETF growth potentialThis development follows reports in mid-June that the Hong Kong Monetary Authority (HKMA) had exerted pressure on major banks to accept crypto exchanges as clients. The central bank and regulator specifically questioned HSBC and Standard Chartered about their reluctance to onboard crypto exchanges as clients.HSBC’s move to offer cryptocurrency services in Hong Kong reflects the growing acceptance and recognition of cryptocurrencies in the financial industry. By providing access to crypto ETFs, HSBC aims to cater to the increasing demand for digital assets among its customers in the region.The crypto ETF products that are currently on offer in Hong Kong are very recent. As an example, Samsung’s Bitcoin futures ETF was launched in January. The product has already seen a lot of interest due to growing uncertainty relative to the traditional global financial system.A report produced by the Hong Kong stock exchange in April found that crypto ETFs have the potential to play a significant part in unlocking the next phase of digital asset expansion in Asia. Clearly, HSBC have taken notice with this move to further enable that potential.

Global crypto exchange platform OKX has announced that it has relaunched its exchange services and Web3 wallet within the U.S. market. In a press release published on April 15, the company said that customers can now access the platform in the United States, “with existing customers migrating seamlessly and new customers gradually gaining access ahead of a full nationwide launch.”Photo by Danny Burke on UnsplashOnboarding OKCoin usersIn terms of existing customers, the company is referring to users of OKCoin, the former name of OKX, who will now be onboarded onto the newly launched OKX exchange service. The Seychelles-based company, which was originally founded and operated in China, has established its U.S. headquarters in San Jose, California. The company has appointed Roshan Robert, formerly an executive at Morgan Stanley and Barclays, as its U.S. CEO. Commenting on the U.S. market relaunch, Robert stated: "With the US advancing crypto regulatory clarity, we see tremendous opportunities to build trust and deliver secure, compliant digital asset solutions.” Inflection pointIn a blog post published to the firm’s website, Robert said that he had been watching the development of the industry since its earliest days, but that he thinks that the crypto sector has now reached “a critical inflection point.” He added that more so than ever before, the crypto sector is currently interacting more directly with traditional finance and capital markets.  Referring directly to what platform users can expect from the relaunched service in the U.S., the OKX U.S. CEO said that the firm plans on rolling out new features throughout the year as part of its vision to build a crypto super app. Rollout of the platform’s services in the U.S. will be carried out on a phased basis. The firm also intends to offer integrations with local banks, together with full support for major assets such as Bitcoin, Ethereum, USDC and USDT.The OKX Wallet will be made available to U.S. users, supporting a range of digital assets across 130 blockchain networks. The wallet will enable users to access a number of Web3 dApps, facilitate the movement of digital assets between blockchain networks and include a number of tools to assist platform users with their trading activities. Entering a ‘new era’It’s likely that a change towards a more positive outlook where the crypto sector is concerned at government and regulatory levels in the U.S., together with a settlement reached with the U.S. Department of Justice (DOJ), has influenced OKX in relaunching its service stateside.  The DOJ had opened an investigation into the company on the basis of allegations that it was operating a money-transmitting business on an unlicensed basis. In its settlement, the company paid fines and penalties totaling $500 million. With that settlement behind it and a more enlightened climate for digital assets having emerged in the U.S., OKX described the service relaunch as “a new era for OKX in the U.S.”Yves La Rose, CEO of Web3 banking project, the Vaulta Foundation, said that OKX’s U.S. expansion is a signal, indicating that “a new era of compliant, wallet-led Web3 innovation is underway.” Diana Pires, an executive at crypto payments firm Beam, expressed a similar take, stating on X that OKX was relaunching “because the world’s largest economy is finally ready for crypto,” adding that “the floodgates are now open for international crypto companies.”