Alchemy Pay Enables Rupee Payments Through UPI

Thai Central Bank Collaborates With Singapore’s 2C2P on CBDC PilotThe Bank of Thailand is set to commence a pilot project for a retail central bank digital currency (CBDC) within a regulatory sandbox later this month.Three participating fintech firmsThat’s according to local media, with reports suggesting that three payment providers will participate in the project, which is expected to involve up to 10,000 users and run until August.The scheme will involve two Thai banks, Bank of Ayudhya (Krungsri), Thailand’s fifth largest bank, and Siam Commercial Bank. Singapore-based payments service provider 2C2P will also collaborate with the Thai central bank on the CBDC initiative. 2C2P is a global payments platform which helps businesses to accept payments securely online, on mobile, and in-store. Each organization has developed an app exclusively available to selected users, encompassing a digital wallet and a QR code scanner.Krungsri plans to engage up to 2,000 staff members and approximately 100 merchants in the project, focusing on locations around the bank’s headquarters. Furthermore, the project will expand to include the Ploenchit branch.Photo by Florian Wehde on UnsplashMaintaining relevanceBanks are having to embrace the need to adapt to the eventuality of developments like CBDCs as, depending upon how they’re implemented, they could render some banking products obsolete. Sam Tanskul, the Managing Director of Krungsri Finnovate, a division of the Thai banking business that focuses on strategic investments, expressed the need for the bank to establish a distinct strategy for differentiating the retail CBDC from its existing PromptPay mobile payments service.Siam Commercial Bank’s pilot project will operate in a similar manner to Krungsri’s, involving staff members and nearby merchants as participants. The Bank of Thailand has emphasized that the project aims to facilitate learning rather than serve as an official pilot launch. At present, the central bank has not disclosed any official plans to implement a CBDC.Wholesale and retail CBDCsThe Bank of Thailand commenced the development of a wholesale CBDC back in 2018. It has actively participated in various projects such as the Bank for International Settlements’ (BIS) mBridge cross-border payment initiative and the Project Inthanon-Lion Rock collaboration with the Hong Kong Monetary Authority (HKMA).In a move to foster the growth of the digital token market, Thailand waived corporate income tax and value-added tax for companies issuing investment tokens in March. While this decision is expected to result in an approximate loss of $1 billion in revenue for the country, it is projected that investment tokens will generate $3.7 billion over the next two years, as stated by a government spokesperson.The Bank of Thailand’s forthcoming retail CBDC pilot project is one of a plethora of such projects being pursued throughout the Asia-Pacific region. In Japan, the Bank of Japan recently completed the second phase of a proof of concept project relative to its CBDC, with the project now progressing to phase three. Last month, it emerged that the Bank of Korea is collaborating with Samsung Electronics relative to its CBDC project. Meanwhile, India is progressing further in trialing its CBDC, while China is further along the development curve than all others in that respect.

Nomura’s Laser Ventures Invests in Singapore’s Solv ProtocolSolv Protocol, a Singapore-based DeFi startup, has revealed a significant stride forward with a $6 million funding round, drawing support from Laser Digital, the digital asset subsidiary of Japanese global financial services conglomerate Nomura.The project team provided details on the funding round via a blog post published to its website earlier this week. Accompanying Laser Digital in the funding round, Singapore’s UOB Venture Management also participated, alongside investors such as Matrix Partners, Bing Ventures, Mirana Ventures, Apollo Capital, Bytetrade Labs, and others.Photo by Towfiqu barbhuiya on Unsplash$14 million cumulative fundingThis injection raises its cumulative funding to an impressive $14 million. The innovative Solv Protocol has been developed to facilitate on-chain fund management within the realm of public blockchains.Delving into the intricacies of the Solv asset management protocol, Olivier Dang, COO of Nomura Securities’ wholesale digital office, expanded on its transformative potential, stating: “Solv has built a trustless institutional DeFi platform integrating brokers, underwriters, market makers, and custodians to create the first fund infrastructure on the blockchain to bridge DeFi, CeFi, and TradFi liquidity.”$100 million in trading volumeSolv Protocol is a DeFi infrastructure project that enables users to create and trade financial NFTs. The protocol concerns itself largely with ERC-3525, an Ethereum standard for semi-fungible tokens, the characteristics of which lend themselves well for financial use cases.At the heart of Solv’s business model lies a unique mechanism. Any fund utilizing its solution inherently allocates a portion of its assets under management. Inaugurated in the second quarter of this year, Solv has already facilitated over $100 million in trading volume.Semi-fungible token innovationThe origins of Solv are rooted in the pursuit of an optimal Ethereum token standard for effective fund management. Dissatisfied with existing standards, the founders, primarily Chinese technologists, forged an innovative path. Traditional ERC-20 fungible tokens weren’t deemed suitable due to the need for a new smart contract token for every customization. Similarly, non-fungible tokens (NFTs) posed limitations, being intrinsically designed as individual units not readily divisible, which is essential for issuing shares in a fund. The security token standard, ERC-1400, didn’t quite align either.Thus, Solv birthed the semi-fungible token through the development of ERC-3525, a groundbreaking solution to its unique challenge.While larger asset managers like Franklin Templeton and Ondo Finance have adhered to fungible tokens, a growing trend is emerging in the traditional asset management sector — a movement toward blockchain integration. UK-based Abrdn recently introduced a fund on the Hedera DLT network, while industry giant Schroders is exploring blockchain tokenization under Singapore’s Project Guardian initiative.It’s been an eventful week for Nomura’s Laser Digital. Alongside news of this investment, the company also announced its recent acquisition of a license from Dubai’s Virtual Asset Regulatory Authority (VARA). This regulatory green light bolsters its presence in the global digital asset sector.Nomura’s Laser Digital is amplifying its presence within the blockchain and digital asset domain, marking its sixth such investment within this year alone. Meanwhile, projects like Solv Protocol are pushing the boundaries of innovation through the development of semi-fungible tokens, extending the use cases of blockchain technology as it does so.

Hong Kong Crypto Exchange Contemplates Sale at HK$1 Billion ValuationHong Kong’s BC Technology Group is reportedly considering the sale of its crypto platform, OSL, with a suggested valuation of approximately HK$1 billion ($128 million).Photo by Samuel Chan on UnsplashDiscussions with potential buyersThat’s according to a report published by Bloomberg on Monday. OSL holds the distinction of being one of only two exchanges alongside competitor HashKey licensed under the digital asset regulations introduced by the city of Hong Kong in June. Bloomberg cited anonymous sources familiar with the matter having revealed that BC Technology has initiated discussions with potential buyers, including industry players and funds.OSL’s platform encompasses prime brokerage, exchange services, and secure custody solutions for the cryptocurrency markets. Furthermore, OSL plays a pivotal role in facilitating financial institutions’ access to virtual asset trading. Rather than a complete sale of the company, BC Technology is considering the possibility of divesting specific parts of the business, according to these sources.It’s important to note that these deliberations are ongoing, and there is no guarantee that they will culminate in a final deal, as highlighted by the insiders. In response to an inquiry from Bloomberg News, a representative from BC Technology stated:“We are a highly transparent and regulated company. We do not comment on market rumors and speculations.”Valuable trading licenseOSL's regulatory licensing is likely to add considerably to its value. Earlier this year it emerged that digital asset sector firms were shelling out a range between HK$20 million and HK$200 million in their efforts to secure crypto trading licenses in Hong Kong.In May the company obtained Type 1, 4, and 9 licensing from Hong Kong’s Securities and Futures Commission (SFC) through its OSL Asset Management (OSLAM) business. Following the acquisition of licensing, the firm moved to launch its first fund, concentrating on blockchain, artificial intelligence (AI), and Web3 technologies.Hong Kong’s crypto hub challengesHong Kong enabled retail-level crypto trading on June 1, with the aim of further establishing the city as a hub for the cryptocurrency sector. The regulatory change enabled retail investors to trade larger tokens such as Bitcoin and Ethereum on licensed exchanges. Despite these efforts, demand for cryptocurrencies remains lackluster due to the lingering effects of last year’s wave of crypto sector bankruptcies.To compound matters, Hong Kong is also grappling with the repercussions of the JPEX exchange scandal, an unlicensed Dubai-headquartered entity that further tarnished the reputation of the digital asset industry in the region.BC Technology’s market value has shown substantial growth, surging to almost HK$1.9 billion from its low point earlier in the year. However, the company’s shares remain down by 80% from their peak in June 2021, which coincided with the cryptocurrency market’s frenzy during the pandemic.In response to market developments, OSL has withdrawn its application for a digital asset license in Singapore and it is preparing a revised submission. It’s worth noting that certain clients from Singapore are being transitioned to the exchange in Hong Kong.