U.S. crypto fund targets Asian investors for new $800M growth equity fund

Crypto fund manager secures capital markets license in SingaporeDigital asset fund manager HashKey Capital Singapore celebrated a significant milestone on Tuesday as it secured a regulatory license from the local regulator and central bank, the Monetary Authority of Singapore (MAS).Photo by Mike Enerio on Unsplash‘Pivotal development’HashKey announced its regulatory success by way of a press release published to its website. This achievement, described by the company as a “pivotal development,” positions the firm to offer regulated fund management services primarily in connection with capital markets products from its Singapore base.Deng Chao, Chief Executive of HashKey Capital Singapore and Head of HashKey Singapore, expressed the company’s commitment to the local blockchain community, stating:“As a licensed fund management company, we are committed to contributing to the local blockchain community and playing our part in shaping its future.”Enabling product launchHaving initiated the licensing process in late 2021, HashKey Capital Singapore now plans to leverage its new status to launch a regulated fund and provide capital market products to local customers. The company envisions connecting blockchain experts and global capital to the local market, contributing to the advancement of the blockchain community in the region.Chao emphasized the company’s excitement about propelling blockchain-related capital markets products and investments further into the mainstream. This move is expected to open new possibilities for institutional and accredited investors in Singapore.Hong Kong presenceHashKey Capital falls under the overarching umbrella of Hong Kong-headquartered parent company HashKey Group. Company colleagues in Hong Kong have been busy in 2023, with a number of milestones having been achieved during the year.HashKey and OSL became the first digital asset exchange platforms to be licensed by the Hong Kong Securities and Futures Commission (SFC) as part of a new regulatory approach that allowed such platforms to offer their services to retail investors from June 1 onwards.A few months on from that and the company has been working towards increasing platform liquidity and trading volumes through a token rewards program and partnerships with market makers.At the end of October, the firm launched an exchange app, having received approval for the product from the local regulator. The firm has also bolstered customer deposit protection by way of a deal struck with fintech firm OneDegree to provide insurance cover for digital assets held on the platform.In April, a separate entity, HashKey Wealth, was formed, offering a wealth management service to both institutional and individual investors looking for exposure to digital assets.HashKey Singapore, inclusive of HashKey Capital Singapore, boasts a team of approximately 40 professionals covering various areas such as venture capital investment, fund management and over-the-counter trading of digital assets. The development follows HashKey Capital’s successful conclusion of a $500 million funding round, reinforcing its position as one of the largest crypto asset managers.Founded in 2015, HashKey Capital has played a pioneering role as an institutional investor in Ethereum, managing over $1 billion in client assets and making investments in more than 500 projects across infrastructure, tools and applications.During a funding round which the HashKey Group pursued earlier this year, it emerged that the company was being valued at $1 billion.

Hong Kong’s GSBN Takes Lead in Blockchain LogisticsIn recent years, the logistics industry has seen an increase in the use of blockchain technology to streamline supply chains and provide greater transparency to customers. While some major players, like Danish firm Maersk, have terminated their blockchain-based platforms, others are bullish on the long-term potential of the technology.©Pexels/Ben CheungA blockchain-based shipping platformOne such player is the Hong Kong-based Global Shipping Business Network (GSBN), a nonprofit consortium focused on blockchain trade applications. According to a report by the South China Morning Post, GSBN operates one of the world’s largest platforms as an alternative to Maersk’s TradeLens tool. Since launching its blockchain-based shipping platform in 2021, GSBN has partnered with major shipping companies and terminal operators such as Cosco, Orient Overseas Container Line, Hapag-Lloyd, Hutchison Ports, SPG Qingdao Port, PSA International, Shanghai International Port Group, and Cosco Shipping Ports.The platform, based on a permissioned blockchain with strong data governance, allows only authorized parties to contribute and consume shipping-related data. The organization believes that blockchain is a crucial logistics tool in the long term, and its adoption may take another decade.Blockchain inevitable amid continued digitizationGSBN CEO Bertrand Chen is confident in the potential of blockchain technology, saying that global trade will not continue to rely on “pen and paper” by 2032. He believes that blockchain has the potential to help the industry transform in response to supply issues triggered by events such as COVID-19.“Because of COVID-19, because you have to change the process, I think this is one of the regular use cases of blockchain” . . . “Probably that’s better than NFTs of digital art. NFTs of documents for global trade — this will be the real killer use case.”While Chen acknowledges that China has taken the lead in blockchain logistics due to its significant investment in the industry, he believes that GSBN has global ambitions and is working to attract more European shipping lines. The nonprofit even hopes to onboard Maersk one day, but Chen admits that such a scenario “may be slightly challenging.”Emerging Web3 hubHong Kong has also emerged as a major hub for Web3 and cryptocurrency, with the local government taking action to adopt clear industry regulations. Despite a blanket ban on crypto in China, some Chinese government-related firms have reportedly been growing interested in crypto investment, with state-owned firms like insurer CPIC launching crypto-related funds in early April.Blockchain technology has the potential to revolutionize global trade and supply chain management, providing greater transparency and efficiency. However, widespread adoption may still be years away, and companies will need to navigate regulatory and technical challenges to fully leverage the benefits of blockchain.While some logistics firms may have terminated their blockchain-based projects, others like GSBN remain optimistic about the potential of blockchain technology in global trade. With major shipping partners and terminal operators already onboard, GSBN has a solid foundation to build on as it continues to attract more players to its platform. As the world becomes increasingly digitized, blockchain may be a crucial tool for the logistics industry to transform and adapt to new challenges.

China Makes History by Settling Cross-Border Oil Deal with Digital YuanThe digital yuan, China’s central bank digital currency (CBDC), also known as e-CNY, was used for the first time to settle a significant oil transaction.Chinese state-owned media outlet China Daily reported on Saturday that the Shanghai Petroleum and Natural Gas Exchange (SHPGX) revealed on October 20 that PetroChina International, a subsidiary of the China National Petroleum Corporation (CNPC), successfully acquired 1 million barrels of crude.Photo by engin akyurt on UnsplashAdvancing e-CNY use internationallyThis transaction is a response to the call by the Shanghai Municipal Party Committee and Municipal Government to incorporate the digital yuan into international trade, marking a noteworthy stride towards the broader adoption of the digital currency.The exact seller and price details for the deal were not disclosed. This historic crude oil transaction signals not only the increasing use of the digital yuan in global trade but also a noteworthy step in the movement towards de-dollarization. Reports from China Daily suggest that the use of the yuan in cross-border settlements experienced a remarkable 35% year-on-year increase in the first three quarters of 2023, reaching a total of $1.39 trillion.This milestone isn’t the first time the yuan has been utilized in the energy sector. In March, the yuan was first used in a liquefied natural gas (LNG) purchase on the SHPGX, as French TotalEnergies reached an agreement to sell LNG to the China National Offshore Oil Corporation (CNOOC). Recently, another LNG deal was executed between CNOOC and French Engie, although these transactions did not involve the digital yuan.In parallel developments, First Abu Dhabi Bank announced on October 19 that it had established an agreement on digital currency with the Bank of China during the third Belt and Road Forum for International Cooperation. China and the United Arab Emirates, including Abu Dhabi, are participants in the mBridge platform designed to facilitate cross-border transactions using CBDCs. The mBridge platform is expected to launch as a minimum viable product in the coming year.Furthering mass adoptionThe Chinese authorities are taking several distinct approaches in furthering mass adoption of the e-CNY. The Chinese subsidiaries of both Singapore’s DBS Bank and France’s BNP Paribas have recently partnered with the People’s Bank of China to enable their international clients operating in China to use the digital yuan.A long list of initiatives have been taken within mainland China by regional governing authorities to further the use of the CBDC. To further enable mass adoption at home, a new offline SIM card-based digital yuan wallet was developed and launched earlier this year.The successful use of the digital yuan in settling this oil deal represents a significant step forward in the internationalization of China’s currency and the growing influence of CBDCs on the global economic stage. As the world watches these developments unfold, the digital yuan continues to make strides towards becoming a crucial means of exchange in international trade and finance.