China to outline clear directions for NFT & Web3 development

Animoca Brands Holding $3.4B in Cash and ReservesDigital entertainment, blockchain and gamification firm Animoca Brands provided an update on its financial position on Thursday, disclosing $3.4 billion in cash and assets as held on its balance sheet and in tokenized reserves as of April 30.Photo by regularguy.eth on UnsplashA financial breakdownThe Hong Kong-based Web3 firm published the interim financial report to its website. Breaking that down further, the company is holding $194 million in cash and stablecoin reserves. Additionally, $566 million is being held in liquid digital assets. This includes reserves of $SAND, the native token of the Ethereum-based Sandbox virtual metaverse.Beyond this, Animoca holds $2.7 billion in a varied portfolio of digital asset reserves, linked to its majority owned Web3 subsidiaries and portfolio companies. The firm outlined that it intends to release additional financial updates in the near future. That will include an audited financial statement for 2020. Furthermore, a summary statement of business activity for 2022 will be released, together with similar business highlights pertaining to Q1, 2023.Adjusting to changing market conditionsIt’s likely that Animoca took the decision to release this data at this point to bolster confidence in the company, off the back of a number of announcements that may have led some in the industry to question the overall financial health of the company.According to a report published in March by Reuters, Animoca Brands cut its target for its metaverse fund by 20% to $800 million. The scaling back was understood by many crypto sector commentators to be a reaction by the company due to changing market conditions within the crypto space. It was the second such adjustment the company made. In November 2022, the firm was working on the new fund, initially proposing a target of $2 billion. Once January came around, Animoca took the decision to scale that target back by half to $1 billion.Subsequent to reports of the fund scale-back being published, Animoca Brands CEO Yat Siu reacted, telling one crypto media outlet that “the claim that the Animoca Capital fund target was ‘cut’ from $2 billion to $1 billion is not correct, because $1 billion has always been within the range declared.”Playing down the news further, the company added: “There’s no doubt that the FTX and banking crises have had a serious impact on available venture capital, but fundraising for the Animoca Capital fund is in progress. When the raise is concluded, we will inform the market with the appropriate details, including the final size of this fund.”Siu stated that as the source of that report was an unnamed source, it was difficult to figure out the agenda of that person in broadcasting that claim.Animoca is perceived in the industry as a key player, particularly so when it comes to NFTs, blockchain-based gaming and the metaverse. The firm is classed as a Crypto Top 40 company by Forbes, while being a winner of Deloitte’s Technology Fast 50 award. Deloitte’s Technology Fast 50 program ranks fast growing companies based upon their percentage revenue growth over the course of three years.

A number of corporations across the Asian region have announced plans to introduce cryptocurrencies as a fixture within their corporate treasuries recently.Photo by Kanchanara on UnsplashReitar Logtech HoldingsAccording to a June 2 filing with the U.S. Securities and Exchange Commission (SEC), Hong Kong-based Reitar Logtech Holdings Limited, a logistics solutions provider listed on the Nasdaq (RITR), intends to purchase $1.5 billion worth of Bitcoin. The filing outlines that the company is at an advanced stage of negotiation with a consortium of institutional investors and high-net-worth individuals with expertise in the digital assets field regarding this strategic treasury diversification initiative. The firm foresees greater involvement in the future with digital assets beyond just holding Bitcoin as a reserve asset. It stated: “The BTC Program will also pave the way for the Company to engage in logistics real estate projects which may involve digital assets in the future by establishing a reserve of digital asset through this initiative and setting up the necessary internal organizational and technical infrastructure for managing such digital assets.” The tokenization of real-world assets (RWAs) is building momentum, with real estate being the standout use case for that activity. DigiAsiaLast month, DigiAsia, an Indonesian fintech firm listed on the Nasdaq (FAAS), outlined that it had launched a Bitcoin reserve strategy. The company stated that the initiative aligns it with the growing trend among publicly-listed companies to add digital assets to the corporate balance sheet. DigiAsia is understood to be actively exploring a capital raise of up to $100 million in order to fund its first Bitcoin purchases. Treasure GlobalOn June 4, yet another Nasdaq-listed firm with Asian origins announced the launch of its digital asset treasury initiative. Malaysia-based e-commerce platform operator Treasure Global stated that its digital asset treasury would be funded with $100 million raised through a new institutional funding partner and an existing equity financing agreement. It plans on buying Bitcoin, Ethereum and regulated stablecoins. K Wave MediaNasdaq-listed K Wave Media, a South Korean entertainment company, also announced on June 4 that it had put together a $500 million securities purchase agreement to facilitate the establishment of a Bitcoin-based treasury. XRP making corporate treasury inroadsWhile there has been a raft of Bitcoin-related corporate treasury announcements within the Asian region and globally, Ripple’s XRP is starting to see some corporate treasury-related activity. On June 3, Webus International, a Chinese international chauffeur service provider listed on the Nasdaq (WETO), outlined in a filing with the U.S. SEC that it plans to establish a $300 million XRP-based corporate treasury.  In addition, Webus plans to integrate corporate use of the XRP blockchain to facilitate cross-border payments for its partners and travelers worldwide. The move follows a recent announcement by London-based VivoPower International, yet another Nasdaq-listed (VVPR) company, outlining that it was establishing a $121 million XRP corporate treasury with funding for the initiative provided by a Saudi prince.

Senior Gyeonggi Officials Required to Declare Virtual Asset Holdings by Sept 1The Gyeonggi province of South Korea is requiring officials of rank 4 or higher to report their cryptocurrency holdings from today until September 1. This move is in line with the amended Public Service Ethics Act, set to take effect on December 14, which will require senior government officials to declare their virtual asset holdings.Photo by Mathew Schwartz on UnsplashRevised code of conductThe nation’s most populated provincial government announced today the finalization and implementation of revisions to the employee code of conduct. These changes intend to prevent government employees from exploiting their official positions for personal financial gains. Before finalizing these changes, the province had sought public feedback on the amendment until July 25.In May, Gyeonggi Governor Kim Dong-yeon convened a meeting to call for devising a plan that encourages public officials under financial disclosure requirements to declare their virtual assets. He emphasized the importance of proactive measures in this regard.On August 14, the provincial government presented guidelines on virtual asset reporting, detailing the reporting process, content requirements, and penalties for false submissions.A move towards transparencyLee Seon-beom, the Head of Gyeonggi’s Investigation Office, explained that this initiative is designed to alleviate the public’s concerns over virtual assets. It also aims to promote transparency among officials, ensuring they avoid unlawful accumulation of wealth.