Korean Blockchain Fund Supports Web3 Game Developer Growth in Southeast Asia

Singapore’s DBS Bank has announced the launch of the distribution of crypto-linked structured notes. The development will see structured notes tokenized on the Ethereum blockchain, with the product being made available to eligible non-DBS clients across three digital investment platforms and exchanges. In a press release published to its website on Aug. 21, DBS, the largest bank in Southeast Asia, disclosed that its tokenized structured notes would be made available to the investing public via ADDX, DigiFT and HydraX. These platforms have signed agreements with DBS to distribute its tokenized structured notes, which are debt securities that combine various types of financial products into one offering.Photo by Shubham Dhage on UnsplashFirst token distributionThe development marks a milestone for DBS insofar as it makes for the bank’s first-ever token distribution. The bank explained that the nature of the note means that investors are provided with a cash payout when cryptocurrency prices rise. In this way, the investor can build exposure to the asset class without having to directly manage any digital assets.While this is DBS Bank’s first token distribution, the bank had launched crypto-linked structured notes for its own eligible clients back in September 2024. DBS asserted that demand for the product has been strong, given that it enables investors to run advanced investment strategies related to their digital asset portfolios. ‘The next frontier of financial markets infrastructure’Commenting on the development, DBS Bank’s Head of Foreign Exchange and Digital Assets, Li Zhen, said that “asset tokenization is the next frontier of financial markets infrastructure.” He added that the tokenized product offering addresses a growing institutional appetite for digital assets. Singapore-based Ryan De Souza, APAC partnership lead at blockchain development firm Offchain Labs, described the product offering as an example of the fractionalization prophecy starting to play out. Access to this type of product would typically be available with a minimum investment size of $100,000. With the tokenization of the product, accessibility is increased given that minimum investment has been reduced to $1,000. Each tokenized note represents a fungible $1,000 share of the conventional structure note product. The development is also significant from the perspective of Ethereum. It demonstrates yet another instance of institutional adoption, which increases both liquidity and demand relative to ETH. Tokenized product offerings are likely to gain further momentum given that they bring greater transparency and efficiency by comparison with conventional offerings. DBS outlined that its clients executed in excess of $1 billion in trades involving tokenized structured notes and crypto options within the first half of 2025. Additionally, trade volumes related to these products grew by almost 60% from Q1 2025 to Q2 2025.Singapore-headquartered product distribution partner DigiFT recently partnered with crypto market maker GSR with the launch of its secondary over-the-counter (OTC) trading service for tokenized real-world assets (RWAs). Back in March, DigiFT announced plans to launch an on-chain index fund, backed by a tokenized stock portfolio. ADDX, another Singapore-based platform, had joined forces with OCBC Bank back in 2023 with a view towards facilitating the launch of a tokenized equity-linked structured note.

Hong Kong Launches Web3 InstituteThe Institute of Web3 Hong Kong has recently been established with the aim of promoting and developing Web3 technologies, including blockchain and other decentralized technologies. That’s according to a report that was published by the Hong Kong China News Agency (HKCNA) last week.©Pexels/Zetong LiPromoting Web3 developmentThe Institute of Web3 Hong Kong aims to promote the development of Web3 technologies by providing education, research, and development support to individuals and organizations interested in these technologies. It will also serve as a platform for collaboration between different stakeholders in the Web3 ecosystem, including developers, entrepreneurs, investors, and regulators.The institute is being led by Joseph Yam, the former Chief Executive of the Hong Kong Monetary Authority (HKMA), and is expected to play a key role in the growth and development of Web3 in Hong Kong and beyond.Yam is well-known for his expertise in financial regulation and has been a strong advocate for the adoption of blockchain technology in the financial industry. In his new role as the head of the Institute of Web3 Hong Kong, he is expected to use his experience and knowledge to promote the adoption of Web3 technologies in Hong Kong and the wider Asia-Pacific region.Developing financial centerThe establishment of the Institute of Web3 Hong Kong is seen as a significant development in the growth of the Web3 ecosystem in Hong Kong. Hong Kong is already known for its strong financial industry, and the adoption of Web3 technologies could further enhance the city’s position as a leading financial hub in the region. The institute’s focus on education and research will also help to develop a skilled workforce that can support the growth of the Web3 industry in the future.The institute is expected to work closely with the Hong Kong government and other stakeholders to create a regulatory framework that supports the growth and development of Web3 technologies. This is important, as regulatory uncertainty is often cited as a barrier to the adoption of blockchain and other decentralized technologies.Precursor to investmentThe establishment of the Institute of Web3 is also expected to attract more investment in the Web3 industry in the region. The institute’s focus on education and research will help to create a favorable environment for startups and other organizations that are developing Web3-based applications.While China has not been a crypto-friendly region in recent years, there are increasing signs that Chinese officials are content to see Hong Kong develop as a hub for Web3-based technologies while keeping the sector under much stricter control within mainland China. Chen Dong, Deputy Director at the Liaison Office of the Central People’s Government in Hong Kong has publicly praised Hong Kong’s push to become a regional center for Web3 innovation. Meanwhile, Li Feng, the Chairman and CEO of China Mobile, has been installed as the non profit’s honorary chairperson.The establishment of the Institute of Web3 Hong Kong is a significant development in the growth and development of Web3 technologies in the Asia-Pacific region. The institute’s focus on education, research, and collaboration will help to promote the adoption of Web3 technologies and create new business models in various industries. With the leadership of Joseph Yam, the institute is expected to play a key role in the growth of the Web3 ecosystem in Hong Kong and beyond.

Poly Network Exploit Results in Billions of Nonexistent TokensPoly Network, the China-based interoperability platform, was targeted by hackers over the weekend in a major attack that resulted in the creation of billions of tokens out of thin air. It’s the second time in as many years that the cross-chain bridge has been exploited by hackers.The attacker exploited a vulnerability in Poly Network’s cross-chain bridge tool, allowing them to generate a substantial number of tokens that previously did not exist, as reported by Arhat, the Founder of 3z3 Labs, on Twitter.Photo by Shubham Dhage on UnsplashNetwork suspensionThe Shanghai-based project team behind Poly Network promptly informed its users on Sunday that its services were temporarily suspended due to the attack. The platform assured its users that it was diligently assessing the extent of the breach and the impact on assets. They emphasized their commitment to safeguarding users’ assets and urged everyone to remain calm.The hacker, at one point, held nearly $43 billion worth of cryptocurrency in their digital wallet, according to DeBank, a decentralized finance portfolio tracker. This staggering figure was corroborated by PeckShield, a blockchain data and security firm.Bridge vulnerabilitiesBridges play a crucial role in the Web3 ecosystem, enabling users to transfer assets across different networks. However, they have often been attractive targets for hackers. In this attack on Poly Network, the hackers issued themselves nearly 100 million BNB and $10 billion worth of BUSD, the Binance-branded stablecoin, on the layer-2 network Metis, revealed Colin Wu, a Chinese crypto journalist.Similarly, on the Heco network, approximately 100 trillion units of the dog-themed meme coin, Shiba Inu, were created. Additionally, a significant number of altcoins were generated on Polygon and Avalanche networks.Illiquid Metis tokensMetis clarified that the BNB and BUSD tokens issued on its network by the hackers are effectively worthless since there is no available sell liquidity. Poly Network also locked these tokens, ensuring they cannot be utilized. Arhat of 3z3 Labs acknowledged that the impact of the Poly Network attack was somewhat mitigated by the lack of liquidity, which prevented the hackers from realizing substantial gains on Metis.However, on other networks like Ethereum, the stolen tokens were exchanged on decentralized exchanges. Arhat estimated that the attacker managed to convert only a small portion of the tokens, amounting to approximately $400,000 worth of crypto, while the remaining tokens lacked liquidity and were essentially worthless.SlowMist, a blockchain security firm, suggested that the hacker’s total gains were higher. They reported that over $4 million worth of digital assets from the attack had been cashed in, including 1,500 Ethereum worth $3 million and 93 billion SHIB worth $700,000.Poly Network had previously made headlines in 2021 when it experienced a historic attack, considered the largest exploit in decentralized finance at the time. The project suffered a loss of $600 million as funds were siphoned away from Ethereum, Binance Smart Chain, and Polygon. However, the hacker eventually returned $342 million worth of stolen crypto, and Poly Network took steps to repay affected users.