More Players Join NH Bank-Led Security Token Consortium in South Korea

Venture Smart Financial Holdings Ltd. (VSFG), a Hong Kong-based financial services firm, is strategically positioning itself to enter the growing cryptocurrency exchange-traded fund (ETF) market, with its latest reveal being an interest in launching a spot ETH ETF in Q2.Photo by Michael Förtsch on UnsplashIn a recent interview with The Block, VSFG Chairman Lawrence Chu revealed the company's plans to apply for a spot ether ETF in Hong Kong. Executing on that plan is contingent upon the successful launch and approval of its spot bitcoin ETF. Q1 launch for bitcoin ETFLast month, the firm disclosed that it is gearing up for a spot bitcoin ETF launch within the first quarter of this year. VSFG was the first to reveal such an intention within the ETF space in Hong Kong. However, competition is already starting to bubble, as subsequently, Chinese asset manager Harvest Fund announced that it has gone one better and actually filed an application for a spot bitcoin ETF product in the Chinese autonomous territory. Chu shared insights into the firm's current status, mentioning that VSFG is in the final phase of preparing its application for a spot bitcoin ETF to be submitted to the Hong Kong Securities and Futures Commission. He emphasized the rigorous regulatory discussions that precede such submissions in Hong Kong, characterizing the imminent application as being in the advanced stages, stating, “Submission [for application] is almost like when you're 95% there.” Chu acknowledged the importance of ongoing conversations with regulators, expressing readiness by stating, “but that really depends on the conversation we have with the regulator. We will be ready.” Competitive spotlight on ETF feesHighlighting the evolving landscape in Hong Kong, Chu noted that nearly 10 fund companies are exploring the launch of potential spot crypto ETFs in the city. That call echoes similar comments made recently by Livio Weng, CEO of digital assets firm HashKey. The prospect of a potential fee war among asset managers was also discussed, drawing parallels with developments observed in the U.S. bitcoin ETF market. That seems likely, given that downward pressure on spot bitcoin ETF fees in the United States has also spread to Europe where Invesco and WisdomTree have cut fees by 60% on similar products. Global ether ETPsWhile commentators such as Standard Chartered Bank speculate on the likely approval of spot ether ETF products in the U.S. by May and VSFG indicates a potential Q2 launch in Hong Kong, there are already a number of similar products out in the wild around the world. According to data compiled by crypto data aggregator platform CoinGecko, the top 10 ether funds account for $5.5 billion in value. Among them is the XBT Provider ether exchange-traded product (ETP), the world’s first Ethereum-based security made available on a regulated exchange, namely Nasdaq Stockholm in Sweden, by crypto ETP specialist CoinShares. While the race is on in Hong Kong to launch crypto ETFs, on an international basis, competition is heating up as various global fintech hubs look to kindle what is likely to make up a significant part of the ETF sector pie in the years to come.

Wemade Partners with Katnappe to Bring Arcade Game to Blockchain PlatformSouth Korean blockchain game developer Wemade has entered into a partnership with Katnappe sp. z o.o. to introduce Hoomeez, a multiplayer casual arcade game from the Poland-based indie game publisher, onto Wemade’s blockchain gaming platform, WEMIX PLAY.Hoomeez has been developed by Sourena Games Studio and is made accessible to players worldwide through Katnappe, which was established in 2008.Photo by Shubham Dhage on UnsplashAddition of casual gamesThanks to this partnership between these two entities, users of WEMIX PLAY will now have the opportunity to engage in casual games like racing, ball games, hazard elimination, and coin collection, using cartoon avatar Hoomie, and compete with friends from around the world.Through collaborations with game companies across North America, Europe, and Asia, Wemade has been strengthening the competitiveness of WEMIX PLAY, and its commitment extends to acquiring a broader range of games encompassing various genres.Omnichain network developmentWemade’s global collaborations extend beyond the realm of gaming and encompass the development of the Web3 ecosystem. Recently, Wemade’s WEMIX Foundation forged a strategic partnership with oracle solutions provider Chainlink Labs in order to establish an omnichain network named the Unbound Networking and Accelerating Growth Initiative (Unagi). Blockchain oracles allow developers to bring data from off-chain sources onto the blockchain.In this collaborative effort, the two companies will implement the Chainlink Cross-Chain Interoperability Protocol (CCIP) into Unagi’s core engine, unagi(x). The integration of CCIP will facilitate the creation of a decentralized omnichain messaging protocol, enhancing the ability to conduct swift and secure transactions between on-chain and off-chain systems.Furthermore, Chainlink Labs will become the inaugural member of the Certified Organizations for Unagi Round Table (COURT), a group dedicated to advancing technological research and development with the aim of nurturing a sustainable omnichain ecosystem.Leveraging the support of Unagi, the WEMIX Foundation is working towards connecting diverse blockchains to construct an extensive Web3 ecosystem. Additionally, the foundation is committed to an ongoing recruitment drive for global partners, seeking to expand the ranks of COURT members in pursuit of technological innovation.Sergey Nazarov, the co-founder of Chainlink Labs, shared his excitement about collaborating with Wemade to further the widespread adoption of Web3 games. He mentioned that Chainlink’s CCIP will open new horizons for unagi(x) in the blockchain sphere and help it secure interoperability between different blockchain networks.Henry Chang, CEO of Wemade, resonated with this perspective. He emphasized that their partnership stems from a mutual goal of advancing technological innovation and shaping the blockchain’s future. Chang expressed that Chainlink’s CCIP will bolster the Korean company’s efforts in enhancing its user-centric Web3 gaming platform.

South Korean blockchain research firm Four Pillars has secured KRW 700 million (approximately $527,000) in investment funds from Kakao Ventures, Hashed and Bass Investment, according to South Korean news site Coin Readers on Tuesday.Photo by Precondo CA on UnsplashEmpowering blockchain venturesLed by a team of industry experts, Four Pillars is dedicated to supporting companies that aim to develop blockchain projects and successfully bring their business to the market. It conducts research based on its technological expertise and experience in blockchain collaborations, providing customized solutions based on each client’s circumstances. It aims to save time and money for companies looking to enter the blockchain market by providing comprehensive and relevant insights on cryptocurrency basics, the blockchain industry, regulations and market analyses, rather than simply listing information. Rapid growth and strategic partnershipsSince its establishment last year, the research platform has attracted more than 30,000 visitors per month on average in just two months. The company has also signed an agreement with Japanese publishing agency Gentosha to publish a Japanese version of its content. Other partners include the layer 1 blockchain Sei Network, Web3 gaming platform Iskra, tech juggernaut LINE’s blockchain Finschia, and Korean telecommunications provider SKT's digital T Wallet.  Before securing the recent investment, the Four Pillars team was recognized for collaborating with various developers on global blockchain projects and receiving a research sponsorship from the dYdX Foundation, a decentralized protocol operator known for being highly selective when offering sponsorships. "The core members of Four Pillars, including CEO Kim Nam-woong, are among the few people in the Korean crypto scene who can bring unique insights to research," said Brian Jang, Director at Kakao Ventures. "Based on their unrivaled research capabilities, we expect them to grow rapidly while connecting domestic and international protocols and corporate needs to business outcomes." Bridging markets, breaking barriersAs trends in the global blockchain market change at a rapid pace, the importance of high-quality, relevant research is amplified, even more so than in the era of Web2. However, information tends to be scattered across platforms, making it overwhelmingly difficult for companies to utilize it in their business endeavors. This is also one of the key reasons why overseas companies have a hard time navigating their entry into the Korean market with their limited knowledge of market trends or conditions. The same can be said for Korean companies who want to launch their businesses overseas. By bridging Korean and overseas companies and projects, Four Pillars aims to resolve this widespread information asymmetry in the ever-growing blockchain industry and establish its foothold as a global research firm. This is reminiscent of Delphi Digital, a U.S.-based crypto research firm founded in 2018 that quickly expanded and established a global Web3 accelerator service called Delphi Labs.  The Four Pillars team also aims to dedicate the investment funds towards accelerating its efforts in talent acquisition, product development and continued research. In the future, the company plans to boost diverse blockchain projects and contribute to the participation of various stakeholders in the blockchain ecosystem.  "Our priority and goal is to create a developer-friendly environment by leveraging the high-quality research and products that we provide at Four Pillars," the firm’s CEO said. "We will lower the barriers to entry for blockchain and grow the entire Web3 market by making it more suitable for both users and developers."