Hong Kong court grants trademark injunction against Huobi

Kiln, the Paris-based Ethereum staking platform, has successfully secured $17 million in a recent funding round, as revealed in a press release on Thursday. Round led by 1kxThe financing round was spearheaded by 1kx, with participation from Crypto.com, Wintermute Ventures, Thailand’s KXVC and Hong Kong’s LBank and IOSG. This infusion of capital brings Kiln's total funding to $35 million, marking a milestone in the company's growth trajectory. The latest funding follows a previous investment of $17.6 million in 2022 from Illuminate Financial, LeadBlock Partners, Sparkle Ventures, Alven and Blue Yard Capital, among others. Kiln opted not to disclose the valuation associated with the recent funding round. In 2021, Canadian blockchain infrastructure and staking firm Figment reached unicorn status with a $1.4 billion valuation. The Kiln platform has witnessed significant growth, increasing its staked assets under management to $4.2 billion in 2023. Acknowledging that growth on Jan. 4, Fred Lardieg, partner at Abu Dhabi sovereign fund Mubadala wrote:”This little-known French startup called @Kiln_finance has been killing it in the #Ethereum #Staking space, by relentlessly releasing new features throughout 2023. They're now the #1 operator of Ethereum validator nodes according to @ratedw3b.” The firm’s expansion is attributed to strategic integrations with various custody solutions, wallets and exchanges over the past year.Photo by DrawKit Illustrations on UnsplashRegional headquarters in SingaporeThe funds raised will be instrumental in facilitating Kiln's global expansion initiatives, including the establishment of its Asia-Pacific (APAC) headquarters in Singapore during the first quarter of the year. Additionally, the company aims to allocate resources for further product development to enhance its offerings in the decentralized finance (DeFi) space. Laszlo Szabo, CEO and co-founder of Kiln, articulated the company's mission, stating: "Our mission is to democratize value creation in the digital assets ecosystem, providing millions of users with easy access to rewards through our platform." The funds will support Kiln's commitment to making value creation in the digital assets space more accessible globally. The company plans to use the funding not only for expansion but also to introduce additional reward mechanisms in the rapidly evolving DeFi landscape. Regulatory uncertaintyWhile Ethereum staking offers users the opportunity to earn yields by validating transactions on the blockchain, the regulatory landscape remains uncertain. The U.S. Securities and Exchange Commission (SEC) has taken legal action against several exchanges involved in crypto staking, with SEC Chairman Gary Gensler expressing views on Ethereum-like tokens as potential securities. Despite regulatory challenges, Kiln's staking platform caters to institutional clients, allowing them to stake assets and offer white-label solutions to their customers. With a focus on proof-of-stake blockchains, Kiln holds a significant portion of staked assets on Ethereum, exceeding $3.1 billion, according to its Dune Analytics dashboard. 1kx Founding Partner Christopher Heymann emphasized the increasing role of financial institutions in the crypto space, stating:  "Financial institutions will become a dominant force in crypto, leveraging the immense market opportunity as they stake on behalf of their customers." By utilizing smart contracts, Kiln allows users to stake smaller amounts, overcoming the traditional barrier of a 32 ETH minimum requirement for native ether staking. This approach aligns with Kiln's goal of fostering inclusivity in the rapidly expanding world of decentralized finance.  

Financial technology firm Circle is taking a measured approach in Hong Kong, favoring focus over expansion. In an interview with the Hong Kong Economic Journal, cited by local financial content provider AAStocks, Yam Ki Chan, the company’s vice president for Asia Pacific, said there are no current plans to issue a stablecoin pegged to the Hong Kong dollar. Still, he noted the company’s openness to partnering with local initiatives, adding that Circle has been in discussions with several firms to share its expertise and insights. The firm hopes the Chinese special administrative region will evolve into a launchpad for stablecoins tied to the local currency alongside other major currencies. Chan said Circle is doubling down on its two core products, the U.S. dollar stablecoin USDC and the euro stablecoin EURC. He pointed out that USDC has been catching on across the region, with more local corporations and professional investors starting to use it. His comments come after the Stablecoins Ordinance came into force on Aug. 1 in the city, setting up a mandatory licensing system for issuers under the Hong Kong Monetary Authority (HKMA). The regulator has said it does not plan to hand out the first licenses until early next year.Photo by tommao wang on UnsplashMoving assets on-chainWhile Circle continues to focus on stablecoins, other firms are finding new ways to bring traditional assets on-chain. DL Holdings, a Hong Kong-headquartered one-stop financial services group, is moving ahead with plans to tokenize about $40 million worth of its non-voting Class B membership interest in ONE Carmel, its luxury real estate investment project in California’s San Francisco Bay Area. The initiative, the firm’s first step into real-world asset (RWA) tokenization, will use blockchain-based smart contracts to automate distributions, transfers, and investor rights, allowing the company to pay out dividends to shareholders and give on-chain investors a chance to participate in ONE Carmel. Insurance is another testbed for blockchain. Anthea Holding Limited, a crypto-fintech licensed by the Bermuda Monetary Authority, raised $22 million in a Series A led by Yunfeng Financial. The proceeds will fund what Anthea says is the world’s first life insurance policy denominated in Ethereum (ETH). Yunfeng Financial, listed in Hong Kong, has close ties to Alibaba founder Jack Ma. Mainland firms deepen crypto exposureMainland companies are stepping into crypto investments. Hangzhou-based Jiuzi Holdings, a Nasdaq-listed operator of new energy vehicle stores, said it completed a private placement transaction settled in 100 Bitcoin. The company plans to allocate the proceeds to building a digital-asset custody platform and developing encrypted storage systems. Separately, China Renaissance is seeking to raise around $600 million for a publicly listed vehicle designed to invest in BNB, the cryptocurrency tied to Binance, according to Bloomberg. Venture firm YZi Labs, formerly Binance Labs, is expected to join the effort. In an August filing, the Beijing-based investment bank said it would commit about $100 million of its own capital to BNB. If completed, the proceeds would establish a U.S.-based crypto treasury company to hold and manage BNB reserves. Back in Hong Kong, momentum in the digital asset sector is now reaching the capital markets. HashKey Group, the financial services firm behind a licensed crypto exchange, has confidentially filed for an initial public offering in the city. Bloomberg reported the plan, citing a source familiar with the matter. The listing could take place as early as this year and raise up to $500 million. Market bounces back on softer trade rhetoricAmid these developments, crypto prices have rebounded from sharp losses linked to trade tensions between Washington and Beijing. The market had tumbled after U.S. President Donald Trump threatened to impose additional 100% tariffs on China. Sentiment shifted when Trump softened his stance on Truth Social, writing, “Don’t worry about China, it will all be fine!” and “The U.S.A. wants to help China, not hurt it!!!” Bitcoin reflected that whiplash. The token dropped to $103,893.3 on Oct. 10 during what Investing.com described as the largest single-day liquidation in crypto history at nearly $19 billion in positions. It has since recovered to $112,608.31 as of publication time. 

Komainu and Crypto Garage partner to bring about institutional crypto adoptionKomainu, the crypto custodian and portfolio company of Japanese financial services conglomerate Nomura, has partnered with Crypto Garage to work towards enabling institutional crypto adoption in Japan.The digital asset custodian made the announcement of the partnership in a press release published to its website on Wednesday. The collaboration builds upon the investment by Crypto Garage's parent company, Digital Garage, in Komainu, aimed at fortifying Komainu’s market presence in Japan. The investment also unites Digital Garage with other prominent Japanese stakeholders in Komainu, including Laser Digital, the digital asset subsidiary of Nomura, alongside the Nomura Research Institute.Photo by Agathe on UnsplashCapitalizing on growing institutional interestCrypto Garage, a company that provides custody, over-the-counter (OTC) trading and settlement services in both the Japanese and international markets, has seen a growing interest from Japanese institutions in digital assets. This has spurred Komainu and Crypto Garage to develop advanced digital asset custody solutions tailored specifically to meet institutional demands, with a strong focus on security and compliance.The partnership harnesses the diverse expertise of both entities, laying the foundation for what both firms hope will be a robust and dependable digital asset management platform throughout the lifecycle of these assets. Speaking to that notion, Crypto Garage CEO Masahito Okuma suggested that the firms share a common vision, adding:“By combining forces, we will leverage our collective expertise to deliver solutions that satisfy the unique needs of Japanese institutions.”Nicolas Bertrand, CEO of Komainu, expressed his optimism regarding the collaboration and the Japanese market, stating:“Japan is a key jurisdiction for digital assets and continues to be an important part of our plans to be the most coveted institutional-grade custodian globally.”This partnership represents a significant leap forward in advancing the institutional crypto landscape in Japan. With the support of established financial entities such as Nomura Holdings Inc. and Digital Garage Inc., this venture is poised to instill confidence among Japanese institutions by demonstrating a strong commitment from the traditional financial sector.This collaboration not only demonstrates the evolving dynamics of institutional crypto services in Japan but also underscores the broader acceptance and integration of digital asset management solutions within traditional financial frameworks. It signifies a matured understanding and approach to digital asset custody and management.Komainu, established as a joint venture between Nomura, CoinShares and Ledger, operates in full compliance with regulatory standards, offering a fusion of traditional financial services with state-of-the-art security measures for institutional custody in the digital age. Earlier this year, the firm entered into a partnership with crypto exchange platform OKX, providing the company with digital asset custody services.In August, Komainu secured a trading license from the Virtual Assets Regulatory Authority (VARA) in Dubai. Meanwhile, Crypto Garage extends its services to crypto asset businesses, both within Japan and internationally, covering custody, over-the-counter (OTC) trading and settlement services for digital assets.