Sui Token Debuts on Korea’s Top Five Crypto Exchanges

Korean Firms Join Forces to Expand the Security Token MarketSouth Korean tech firm AIITONE announced today that it signed a memorandum of understanding (MOU) with real estate developer Korea Asset Development to expand security token businesses, according to a report by news agency Newsis.Photo by Shubham Dhage on UnsplashVentures into fintechAIITONE is renowned for its expertise in applying extended reality (XR) technology to smart defense and metaverse projects. In their latest strategic move, they have hired a blockchain tech group to venture into fintech sectors, with a specific focus on security tokens.Real estate expertiseKorea Asset Development, a real estate developer engaged in multiple projects nationwide, is currently involved in the development of upscale housing in Seoul and Busan, high-end residences in Songdo, as well as luxury resorts in Chungcheong and Gangwon Provinces.Through their collaborative endeavors, AIITONE and Korea Asset Development seek to capitalize on their respective technological expertise and knowledge. They plan to share their know-how and establish a comprehensive cooperation framework, specifically targeting content development associated with security tokens. Furthermore, both parties have committed to consistently exploring new areas of cooperation.Security token opportunitiesIn particular, the two companies have identified real estate due to its relatively easier valuation compared to other assets. The market for real estate security tokens in Korea is projected to reach 34 trillion KRW ($26 billion) by 2024. It is estimated that financial services, including real estate, account for approximately 70% of the total security token market size.AIITONE CEO Lee Jin-yup underlined the importance of cooperation with a range of players that bring diverse resources, considering that the security token market involves high-value tangible assets such as real estate, music, and artworks. He said the partnership with Korea Asset Development will help the company secure a competitive edge in the burgeoning real estate security token market.Development in JapanNot just South Korea, but other East Asian nations too are experiencing significant strides in the security token market. Japan serves as a case in point, with companies like Mitsui & Co. Digital Asset Management (Mitsui & Co. DAM) exploring the potential of this emerging market.Mitsui & Co. DAM last month introduced a platform that allows retail investors to access security tokens backed by real-world assets. This initiative opens up previously inaccessible investment opportunities to a broader range of participants.Moreover, the Tokyo Metropolitan Government has taken an active role in supporting security token businesses within its jurisdiction. From May 31, 2023, to February 29, 2024, the government runs a subsidy program for security token projects based in the capital city. Under this program, eligible businesses can receive subsidies of up to 5 million yen ($36,000) per project.

Bitpowr, a digital asset custody and blockchain wallet provider that concentrates on the African market, is looking to expand in Asia having achieved a recent crypto transaction milestone. $200 million in total transactionsThe company has exceeded $200 million in total transactions processed since its launch in January 2022. The milestone demonstrates the firm’s efforts in furthering its mission to democratize finance with accessibility for all through crypto. The achievement was outlined recently in a report by TechCabal, a pan-African publication that covers innovation and tech developments across Africa. Bitpowr provides a modular ecosystem of Web3 and blockchain infrastructure to aid enterprises in building out blockchain-powered solutions.Photo by Kyle Glenn on UnsplashAsian clientele on the ascendancyIn a recent interview, Toby Oyetoke, the co-founder of Bitpowr, disclosed a noteworthy shift in customer demographics, with Asian clientele now surpassing their African counterparts in contributing to the company's $200 million transaction milestone. The Bitpowr co-founder believes that this signals a growing demand in the Asian market for accessible blockchain tools and infrastructure which are necessary for financial institutions seeking to launch and scale their products and services, relative to Web3. Oyetoke shared insights into Bitpowr's financial performance, stating:“Currently, we do up to $20 million per month in terms of traction volume processed, and that is from April 2022 till now. We now generate more revenue than we spend. We are cash flow positive.” There have been signs that inter-regional trade between the African and Asian regions is growing where crypto-related payment gateways and solutions are concerned. At the end of last month, Klasha, an Africa-based cross-border payments company, partnered with Singapore-headquartered digital payments firm FOMO Pay with a view towards better enabling Asian merchants to trade with African businesses over crypto-enabled payment rails. A recent Chainalysis report revealed Asia as the largest cryptocurrency market globally. Its crypto adoption index prominently featured Asian nations such as India, Thailand and Vietnam among the top grouping of nations where adoption of the digital asset innovation is concerned. Bitpowr co-founder Amarachi Amaechi is equally enthused about Asian market growth opportunities. She stated: “There is a good demand from Asia right now. We are seeing increasing representation in transaction volume which also translates to an increase in revenue for us.”   Amaechi outlined that the firm intends to hire people from Asian countries in order to market the company’s service offering in those markets. Focus on Southeast AsiaLooking ahead, Bitpowr is setting its sights on expanding further into the Asian market, particularly in Southeast Asia, while maintaining its operations in Africa. The company aims to establish its ledger and wallet infrastructure during this strategic expansion. Bitpowr has also announced that it has achieved SOC 2 compliance, meaning that it follows strict information security policies and procedures. It has also initiated the implementation of the ISO 27001 audit process through its partnership with New York-headquartered compliance specialist Thoropass. The company's expansion into the Asian market is anticipated to not only accelerate its own growth but also offer customers in the region access to innovative digital asset solutions, supporting them in achieving their financial goals.   

Harvest Global to establish fixed income tokenized fundHong Kong investment firm Harvest Global Investments, in partnership with Meta Lab HK, is set to offer a tokenized U.S. dollar bond fund.The collaboration between Harvest Global Investments (HGI), an affiliate of Harvest Fund Management, and Meta Lab HK, backed by Harvest Digital Assets, marks a significant development in the crypto investment landscape within Hong Kong and the broader Asian region.Photo by Giorgio Trovato on UnsplashFirst fixed-income tokenized fund from Chinese institutionMeta Lab HK announced details of the new offering, detailed in a Nov. 22 post on X (formerly Twitter). The fund targets professional investors and will concentrate on U.S. dollar bonds with an investment-grade rating. Meta Lab wrote:”We have learned that this will be the first fixed-income tokenized fund introduced by a Chinese financial institution in Asia with a tokenization arrangement. The fund is exclusively available to professional investors and primarily invests in investment grade U.S. dollar bonds.”Meta Lab added, “The offering is set to be managed by HGI, a subsidiary of Harvest Fund in Hong Kong, with Meta Lab HK providing the tokenization solution.”The tokenization of the fund, a process transforming traditional financial assets into digital tokens, is expected to enhance accessibility and efficiency for investors. The notification to Hong Kong’s securities regulator has been duly completed, underscoring the compliance and regulatory adherence of the initiative.The move comes amidst a series of noteworthy developments emerging from Asia, occurring against the backdrop of persistent regulatory challenges facing the cryptocurrency industry in the United States.CoinFund market entryThis announcement follows closely on the heels of CoinFund, a New York-based investment firm, which revealed its plans to expand services into Asia earlier this week. Choosing Hong Kong as the inaugural location for this expansion, CoinFund cited the city’s appeal to crypto talents as a key factor. As Asia takes strides in pioneering tokenized funds, it suggests a competitive landscape in digital asset development that could rival the United States.It’s likely that Hong Kong is providing a workable environment for Harvest Global to take this tokenized product to market. In August, the local regulator, the Hong Kong Monetary Authority (HKMA), published a report where it indicated an interest in pursuing tokenization as a means to improve aspects of the bond market. The report presented outcomes of Project Evergreen, an initiative the HKMA had been running to examine the potential of tokenization, which also incorporated the launch of a first-of-its-kind tokenized green bond.Regional tokenization interestRecent weeks have also seen further efforts being made within the Asian region in terms of bond tokenization. Last week, SC Ventures, the Singaporean investment subsidiary of British banking group Standard Chartered, unveiled a new platform called Libeara. That platform is working towards the launch of the first-ever tokenized Singapore dollar government bond fund.In the same week, the Bureau of the Treasury in the Philippines announced that it is issuing $179 million in one-year tokenized bonds, with the bonds being facilitated by the Development Bank of the Philippines and the Land Bank of the Philippines.