Korea Exchange sets the stage for security token trading

Coins.ph partners with Paxos to further PYUSD adoptionCoins.ph, the Philippines’ leading cryptocurrency exchange, has forged a strategic alliance with Paxos Trust Company, a New York-based institution specializing in blockchain, aiming to propel the adoption of PayPal USD (PYUSD) for seamless cross-border remittances.Photo by C Bueza on UnsplashTargeting fourth largest remittance marketThe Southeast Asian firm outlined details of the partnership via a blog post published to its website on Tuesday. The integration of PYUSD into Coins.ph marks a significant milestone, providing Filipinos with a secure and convenient avenue for transferring funds across borders to their loved ones. Wei Zhou, CEO of Coins.ph, emphasized the foresight in prioritizing the growth of USD stablecoins, particularly PYUSD, acknowledging the Philippines as the fourth largest remittance-receiving country globally, with over 40% of these remittances originating from the United States. Zhou stated:“With PayPal behind it and its availability on platforms such as Venmo and Xoom, PYUSD is set to become one of the most widely used stablecoins in the world.”PYUSD is a U.S. dollar stablecoin promoted by American multinational payment system PayPal and issued by Paxos.Nick Robnett, Senior Director of Customer Success at Paxos, echoed Zhou’s sentiment, stating that PYUSD stands as the safest dollar-backed stablecoin accessible to global institutions and consumers. This regulated digital asset enables Coins.ph users to send U.S. dollars swiftly and affordably, challenging conventional remittance networks and providing enhanced access and economic freedom.Asian expansionThis latest collaboration in the Philippines comes hot on the heels of similar in-roads made elsewhere in Southeast Asia. In Singapore, Paxos has partnered with Crypto.com, an entity that is headquartered in the city-state. The local regulator, the Monetary Authority of Singapore (MAS), had outlined a new regulatory framework for stablecoins in August, making conditions right for Paxos to further develop its PYUSD offering from that location.It got a further boost last week when MAS awarded its local subsidiary, Paxos Digital Singapore Pte. Ltd., in-principle approval to trade within Singapore. The relatively new stablecoin has already been listed on international crypto exchanges such as Bitstamp, Coinbase and Kraken.Philippine potentialThe Philippines is shaping up to have a lot of potential for Paxos and its PYUSD stablecoin. The country has been working on the publication of a regulatory framework for crypto. Coins.ph Head of Legal Compliance, Robert De Guzman, stated in April that the Southeast Asian country was shaping a progressive crypto regulatory framework. Earlier this year, Donald Lim, the Founder of the Blockchain Council of the Philippines (BCP), said that the country was poised for crypto adoption.For users keen on employing PYUSD for remittances, the process is streamlined. Senders transmit PYUSD to the designated Coins.ph wallet address of recipients, from where easy conversion to the Philippine peso (PHP) on the app and subsequent cash-out becomes possible. This can be facilitated through InstaPay or PESONet fund transfers to banks and other e-wallets or through various supported over-the-counter remittance centers endorsed by Coins.ph.

UBS extends crypto ETF access to clients in Hong KongMultinational investment bank UBS Group AG has followed suit with competitors like HSBC, enabling its wealthy clients in Hong Kong to engage in the trading of select crypto-linked exchange-traded funds (ETFs).Photo by Pierre Borthiry — Peiobty on UnsplashRegulatory approval to offer three ETFsThis move, reported by Bloomberg on Thursday, aligns with Hong Kong’s efforts to establish itself as a prominent digital asset hub. Citing an undisclosed source, Bloomberg outlined that three crypto ETFs, namely the Samsung Bitcoin Futures Active, CSOP Bitcoin Futures and CSOP Ether Futures, have received approval from the Securities and Futures Commission (SFC) and will be available on UBS’s Hong Kong platform starting this Friday.The inclusion of these ETFs allows UBS clients to diversify their investment portfolios, offering exposure to the dynamic crypto market. Educational materials will also be accessible to clients, aiding in their understanding of associated risks. While UBS declined to comment on this development, it marks a strategic move by the Swiss bank to tap into the growing demand for crypto-related investment products.In June, Hong Kong’s largest bank, HSBC, moved to expand its offering to include crypto ETFs. It has made available the very same crypto ETFs as UBS is about to offer.Hong Kong’s crypto credentialsHong Kong introduced a comprehensive digital asset regulatory regime on June 1, aiming to safeguard investors while fostering the Chinese autonomous territory’s emergence as a digital financial center. The SFC permits retail investors to trade major tokens on licensed exchanges under these regulations.Despite these regulatory advancements, Hong Kong faced setbacks, notably with the recent issues surrounding the unlicensed JPEX exchange, which led to increased scrutiny. The establishment of a joint task force between the SFC and the police aims to monitor and prevent suspicious activities within the crypto industry.Globally, financial institutions remain cautious about compliance risks in the crypto sector. However, signs of increased engagement are emerging. DBS, Singapore’s largest bank, has expressed its intention to seek a license to offer crypto services to Hong Kong customers. ZA Bank, the largest virtual bank in Hong Kong, plans to provide token-to-fiat currency conversions over licensed platforms. Furthermore, SEBA Bank, backed by the Julius Baer Group, has obtained a license for its unit to offer crypto services in Hong Kong.Unlocking ETF potentialA report published by the Hong Kong Stock Exchange in April claimed that crypto ETFs possess the potential to unlock the next phase of digital asset expansion in Asia. Earlier this week, it emerged that regulators were open to the notion of allowing retail access to spot crypto ETFs in Hong Kong, provided that the necessary regulatory approvals and checks were in place.The inclusion of the CSOP Bitcoin Futures and CSOP Ether Futures funds on UBS’s platform highlights the gradual recovery of the crypto sector from the market rout experienced in 2022. Despite the previous market challenges and collapses, the prospect of the U.S. allowing its first spot Bitcoin ETFs has contributed to a resurgence in the largest token’s price this year. The move by UBS aligns with the broader trend of financial institutions cautiously embracing the crypto economy, indicating a shifting attitude toward these digital assets in the financial mainstream.

Korean Investment Firm Partners with Open Asset to Build Security Token SystemKorea Investment and Securities (KITC), one of the major securities firms in the nation, announced today that it signed a memorandum of understanding (MOU) last week with Seoul-based blockchain developer Open Asset to construct a distributed ledger system for a security token alliance led by KITC. That’s according to a report by local news outlet Dailian.Photo by Growtika on UnsplashSecurity token groupIn March, KITC initiated a security token group called “Korea Investment ST Friends” in collaboration with online banks Kakao Bank and Toss Bank, as well as Kakao Enterprise, an artificial intelligence (AI) solution provider. The primary objective of this alliance is to establish the necessary infrastructure for issuing products suitable for security tokens.Tech expertiseOpen Asset, led by its CEO Kim Kyung-up, boasts a team of tech talents. The company played a key role in the Bank of Korea’s central bank digital currency (CBDC) project and participated in the development of Kakao-backed initiatives such as the blockchain platform Klaytn and the digital wallet Klip.Future system integrationThe partnership with Open Asset aims to integrate the forthcoming distributed ledger system into KITC’s existing securities trading platform, creating synergies for its business. Additionally, the two entities are exploring the possibility of connecting the new platform with the systems of other participants in the group in the future.Choi Seo-ryong, the head of the platform division at KITC, emphasized the investment firm’s objective of establishing market standards for security tokens that offer numerous possibilities. He added that KITC will work with Open Asset to develop an innovative and efficient system.