CipherBlade Opens Singapore Office

Pyth Network, an oracle network that provides a bridge between blockchain smart contracts and real-world data, has added pricing data related to stocks listed on the Hong Kong Stock Exchange (HKEX) to its service offering. Data covering 85 stocksIn a social media post, the project stated that it’s “bringing the Hong Kong market onchain.” In building out the future of finance, DeFi application developers need real-world data from traditional finance sources. Pyth Network confirmed that real-time data in the case of 85 stocks listed on HKEX is now live. In announcing the development, the company disclosed that price feed data is updated every 400 milliseconds and sourced from institutional-grade venues. Once added to the Pyth Network, the data is made available on a multi-network basis across in excess of 100 blockchain networks.Photo by Anne Nygård on UnsplashGateway dataHKEX data is perceived to be significant given that it is a major global exchange, while acting as a key gateway between global and Chinese markets. Pyth Network stated: “Whether you’re building trading strategies, structured products, tokenized portfolios, or simply want access to real-world stock prices from Asia’s financial gateway, these feeds bring Hong Kong’s equity market onchain openly, instantly, and permissionlessly.” In a blog post published to its website on July 28, Pyth Network outlined that this data addition accounts for data related to companies that have a combined equity market value of over $5 trillion. The project stated that this new data is “giving builders, traders, and protocols around the world direct, real-time access to one of the largest financial markets on earth.” Improving access to APAC equitiesThe project made the point that for many years, access to real-time data from the primary markets within the Asia-Pacific (APAC) region has been cost-prohibitive. It claimed that data terminals with this information can cost in excess of $30,000 per year. Pyth Network feels that with its market offering now incorporating HKEX market data, it is opening up access to this data for developers and DeFi protocol projects. This development is the latest in a string of updates that the project has brought about recently. Earlier this month, the project announced a partnership with tokenized real-world asset (RWA) provider Ondo Finance. The deal sees the duo oversee the launch of a USDY/USD price feed, which will be distributed by Pyth across 65 blockchain ecosystems. Similar to its latest unlocking of HKEX equity data, in June it enabled access to real-time onchain pricing related to the UK’s most actively traded equities. Going forward, the company states that “foundational market data will be open, composably integrated, updated in real-time, and available to anyone with an internet connection.” In March 2024, Pyth’s price feeds went live on Injective inEVM, an Ethereum Virtual Machine (EVM)-compatible layer-2 rollup developed by Injective Labs. At the time of writing, the unit price of PYTH, Pyth Network’s native utility and governance token, was $0.1204, according to CoinGecko data.

MHC Digital Group, an Australian digital assets management platform, has entered into a partnership with USDC stablecoin issuer Circle Internet Financial, with a view towards increasing the circulation of USDC within Australia and the Asia-Pacific (APAC) region. MHC was founded by well-known venture investor Mark Carnegie, with the company having offices in Sydney and Singapore. The firm will work with Circle to distribute USDC in Australia and within the APAC region. MHC has been marketing its services towards institutional investors and it’s that same client group that the two firms want to target in order to increase USDC circulation. The firm will provide “cost-effective and efficient USDC access” where institutional clients are concerned.Photo by Catarina Sousa on PexelsCrypto ‘a better mousetrap’ In a media release published on behalf of the two companies, Carnegie claimed that while many people still claim that there is no use case for crypto, hundreds of billions move globally at a fraction of the cost experienced via the traditional financial system. “Crypto is simply a better mouse trap for the vast majority of international payments,” he added. Commenting on the development in an interview with the Australian Financial Review, Carnegie stated:“I’m hoping we can show there are hundreds of millions of dollars of forex [foreign exchange] trading fees, where super funds are getting their faces ripped off by Macquarie Bank and the other incumbent banks.” Appealing to pension funds Carnegie wants to get large pension funds on board in using USDC. He pointed to the fact that global banks make $170 billion from corporations and individual investors through the movement of funds over the SWIFT network. He can see that major savings can be made if USDC is used relative to these fees. Despite all this, Carnegie acknowledges that it will be a hard sell to get them on board. As part of these plans, MHC Digital will be launching an over-the-counter (OTC) trading desk, which will be targeted towards hedge funds, crypto enterprises and high-net-worth individuals. APAC opportunity Kash Razzaghi, Circle’s chief business officer (CBO), identified APAC as presenting with an adoption opportunity beyond institutional clients. Razzaghi stated: “With its young, mobile-first and digital wallet-ready population, the Asia Pacific region is ahead of the curve when it comes to digital asset adoption." Carnegie appears to be similarly enthusiastic when it comes to the APAC region. In an interview with CNBC back in January, he suggested that the crypto bull run was “an Asian story this time round.” It’s understood that the two companies are also considering collaborating on the issuance and distribution of an Australian dollar (AUD) denominated stablecoin. This development is the latest in a string of initiatives taken by Circle to bring about USDC adoption in the APAC region. In 2023 the company partnered with SBI Holdings with the objective of enhancing the circulation of USDC within the Japanese market. The very same rationale resulted in it partnering with Tokyo-based crypto trading platform Coincheck in February 2024. The company has also tried to trigger adoption at a retail level, through collaborations with FamilyMart convenience stores in Taiwan and Southeast Asian super app Grab. 

Tongli Han, the CEO and CIO of Harvest Global, has expressed openness to the possibility of applying to offer Bitcoin and Ether exchange-traded funds (ETFs) to mainland Chinese investors through the Stock Connect program. This consideration is contingent on favorable developments in the next two years. Harvest Global, along with China Asset Management (ChinaAMC) and Bosera HashKey, recently launched Asia's first spot Bitcoin and Ether ETFs on the Hong Kong Stock Exchange, aligning with Hong Kong's ambition to establish itself as a global cryptocurrency hub. Han's remarks were delivered during the Bitcoin Asia conference in Hong Kong, underscoring the potential for expansion into the mainland Chinese market.Photo by Jimmy Chan on PexelsUncertain regulatory landscape and growth prospectsDespite the introduction of spot crypto ETFs in Hong Kong, uncertainty looms over mainland Chinese investors' access to such products through the Stock Connect program. China's regulatory stance towards the cryptocurrency industry remains stringent, with most commercial crypto activities prohibited on the mainland. While there is speculation regarding the potential inclusion of crypto ETFs in the eligible securities list of the Stock Connect program, approval remains uncertain. The debut of Hong Kong's spot crypto ETFs recorded modest trading volumes compared to their U.S. counterparts, signaling a cautious start. However, Han anticipates the potential for growth in the Asia region, envisioning the Hong Kong ETFs to potentially double the size of their U.S. counterparts. Despite differing opinions on growth prospects, market observers highlight challenges such as the relatively small size of the Hong Kong ETF market and restrictions on mainland Chinese investors' participation, underscoring the complexities facing the expansion of crypto ETFs in the region.