Japan’s Biggest Bank Explores Global Stablecoin Issuance

SC Ventures Exits Digital Asset Custody Infrastructure InvestmentSC Ventures, the Singapore-headquartered corporate venture capital arm of Standard Chartered Bank, has announced its decision to divest its stake in Metaco, a Swiss-based digital asset custody firm. As one of Metaco’s early adopters, SC Ventures played a crucial role in supporting the company’s growth and development.Photo by Pixabay on PexelsDissolving a partnershipHaving been the largest institutional investor in the digital custody infrastructure firm, SC Ventures contributed significantly to the enhancement of Metaco’s award-winning custody product. The partnership between the two entities facilitated valuable contributions in various areas, including corporate governance, business strategy, institutional use cases, and access to SC Ventures’ extensive ecosystem. Through their collaboration, SC Ventures aimed to provide institutions with a secure and compliant ecosystem for operating digital assets.Ripple acquisitionIn a recent development, enterprise blockchain company Ripple acquired Metaco for $250 million. Ripple’s acquisition of Metaco signifies its diversification into custody solutions, expanding its business opportunities within the blockchain sector. With this move, Ripple aims to offer its customers technology that enables custody, issuance, and settlement of various types of tokenized assets. Further evidence of Ripple’s interest in this area emerged last week with the news that the company is collaborating with authorities in Hong Kong to showcase real world asset tokenization.Despite the acquisition, Metaco will continue to operate as an independent brand and business unit, under the leadership of its founder and CEO, Adrien Treccani. This decision ensures continuity and stability for Metaco’s existing clients and partners while benefiting from the resources and support provided by Ripple.Ongoing linkWhile the divestment of a division of an international banking behemoth like Standard Chartered from a digital asset infrastructure firm may seem like a bad news story, it’s likely not that straightforward. It’s worth noting that Zodia Custody, itself a digital assets custody venture incubated by SC Ventures, continues to maintain a strategic partnership with Metaco.The ongoing collaboration between Zodia Custody and Metaco focuses on matters related to compliance and risk management. This partnership ensures that both companies can leverage their respective expertise to address the increasing demand for safe and compliant access to cryptocurrencies and digital assets from institutional investors.Despite this divestment, it appears that SC Ventures still recognizes the importance of supporting emerging technologies on the cusp of adoption through its continued involvement with Zodia Custody, continuing advancements in the digital asset space.SC Ventures’ exit from its stake in Metaco marks a significant milestone in the ongoing evolution of both companies. While SC Ventures has played a vital role in Metaco’s growth, the acquisition by Ripple opens up new opportunities for Metaco to expand its offerings and cater to a broader customer base. Meanwhile, the collaboration between Zodia Custody, Metaco, and SC Ventures ensures that institutional investors have access to secure and compliant solutions as the demand for digital asset services continues to rise.

Wemade joins hands with DIFC to establish WEMIX Play Center in DubaiSouth Korean blockchain gaming publisher Wemade has become the first gaming company in the country to form a partnership with the Dubai International Financial Centre’s (DIFC) Innovation Hub, according to an official press release on Wednesday (local time). Through this new partnership, Wemade plans to establish a WEMIX Play Center at the DIFC Innovation Hub as a space for gaming companies that are part of the WEMIX ecosystem.Photo by Wael Hneini on UnsplashUnlocking opportunitiesThe DIFC is a financial free zone in Dubai equipped with its own administrative, judicial and regulatory bodies. The Innovation Hub — a financial innovation ecosystem — was established by the Dubai government to attract global companies in fintech, Web3, gaming and artificial intelligence (AI). Members and partners are eligible to receive various benefits, like a DIFC Innovation Licence — which helps technology firms set up their businesses — global networking opportunities and office spaces.Along with the establishment of the WEMIX Play Center, Wemade aims to make appropriate investments for the success of its onboarded companies and work with the DIFC to create a $100 million global Web3 gaming fund. The company said that it would hold joint Web3 events with the Innovation Hub in the future to promote these initiatives.Fostering financial evolutionDubai has been actively promoting financial services to stimulate economic growth and attract investments, encouraging the creation and growth of blockchain businesses and the widespread use of cryptocurrencies. By settling down at the DIFC Innovation Hub, Wemade intends to closely communicate with UAE’s crypto regulatory authorities and formulate an optimal business strategy in line with the latest industry trends in the Middle Eastern region.Meanwhile, the company is in the process of applying for the registration of its governance token WEMIX as a recognized crypto token with the Dubai Financial Services Authority (DFSA). Cryptocurrencies on this DFSA list are authorized for use in transactions among the 4,900 institutions and individual investors residing in DIFC. Currently, there are five recognized crypto tokens including Bitcoin, Ethereum, Litecoin, Ripple and Toncoin. The latter two were recently added to the list last month.

Duncan Chiu, a member of Hong Kong's Legislative Council, has expressed concerns over the stringent regulations imposed on cryptocurrency exchanges by the Securities and Futures Commission (SFC). In an opinion piece for the Hong Kong Economic Journal, Chiu argued that these rigorous standards have deterred major global exchanges from entering the Hong Kong market, undermining confidence in the region's commitment to developing Web3 technologies. He highlighted the recent withdrawal of license applications by prominent exchanges such as OKX, Gate.io and HTX as indicative of the flaws in the current regulatory framework.Photo by Chapman Chow on UnsplashLicensing system and industry developmentChiu criticized the fragmented approach to policy development for Hong Kong’s virtual asset market, noting that various aspects like VATP (Virtual Asset Trading Platforms), stablecoin issuance and virtual asset over-the-counter trading are managed by different departments without strategic industry consideration. He also mentioned feedback from license applicants who feel that the authorities lack a forward-thinking vision for fintech and are applying traditional financial principles too rigidly to the dynamic and innovative sector of Web3. Furthermore, Chiu pointed out the disconnect between the industry and regulators, particularly in the experience required of management in licensed crypto operations versus the practical experience of regulators in Web3, complicating effective communication and progress.