PiLab Technology and Mirae Asset Securities to build Web3 infrastructure to navigate tokenized securities market

Philippines breaks new ground in first-ever tokenized bonds saleThe Philippines is set to offer the country’s first tokenized treasury bonds, a novel way of issuing debt securities using blockchain technology.Photo by Mara Rivera on Unsplash$179 million tokenized bond issuanceAccording to a report by Bloomberg on Thursday, the Bureau of the Treasury announced that it will issue 10 billion pesos ($179 million) of one-year tokenized bonds next Monday after canceling the conventional auction scheduled for the same day. The bonds will be issued by the Development Bank of the Philippines, a state-owned entity, together with the Land Bank of the Philippines.The tokenized bonds will be sold to institutional investors at a minimum denomination of 10 million pesos, with increments of 1 million pesos. The bonds will have a one-year validity, maturing in November 2024. The treasury bond interest rate has yet to be determined and will be confirmed on the date of issuance.Deputy Treasurer Erwin Sta said that the government is exploring the potential of tokenizing real-world assets and bonds and will “continue to study the technology and test how far we can take it.”Tokenization is the process of converting physical or digital assets into digital tokens that can be stored, transferred and traded on a blockchain network. Tokenization can offer several benefits, such as lower costs, faster transactions, greater transparency and enhanced security.Asian surge in tokenizationThe Philippines is not the only Asian country that is experimenting with tokenized bonds. This latest bond tokenization project follows hot on the heels of a similar move in Singapore. Earlier this week, British banking conglomerate Standard Chartered, through its Singapore-based fintech investment subsidiary SC Ventures, unveiled a new platform called Libeara. Libeara is gearing up to offer the first-ever tokenized Singapore-dollar government bond fund.In February, Hong Kong issued $100 million of tokenized green bonds under its Green Bond Programme, using Goldman Sachs’ tokenization protocol. The tokenized green bonds, a first-of-its-kind issuance, have a one-year validity and aim to support environmental projects in the region.Authorities in Singapore have also launched a series of pilots on tokenizing real-world assets in collaboration with JPMorgan, DBS Bank, BNY Mellon and Apollo, an investment firm. The pilots will test the feasibility and efficiency of tokenizing assets such as equities, bonds and funds. The United Arab Emirates (UAE) partnered with HSBC to conduct the tokenization of bonds as well.The tokenization of real-world assets is not limited to Asia. Israel’s Tel Aviv stock exchange completed a proof-of-concept for tokenizing fiat and government bonds, demonstrating the potential of blockchain technology to transform the capital markets.The tokenization of real-world assets using blockchain technology is a growing trend among governments and financial institutions. According to the Boston Consulting Group, tokenized assets could reach a market capitalization of $16 trillion by 2030. By issuing tokenized bonds, the Philippines is joining the ranks of the pioneers in this field, opening up new possibilities and opportunities for the crypto industry and the economy as a whole.

Recent developments in the cryptocurrency market reveal that mainland Chinese citizens will face restrictions in purchasing Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong. This restriction stems from China's ban on crypto transactions, which has been in effect for several years. Bloomberg data analyst Jack Wang highlighted this issue, indicating that the upcoming launch of spot Bitcoin and Ether ETFs in Hong Kong will not facilitate market access for investors in mainland China.Photo by Traxer on UnsplashSpot Bitcoin and Ether ETFs approved in Hong KongDespite Hong Kong's approval of spot BTC and ETH ETFs, major Chinese asset managers such as China Asset Management, Harvest Global Investments, and Bosera have established these products through their Hong Kong subsidiaries. However, despite their close ties with mainland China, these ETF issuers are unable to offer Bitcoin or Ether exposure to investors within the jurisdiction due to regulatory constraints. Exclusion of mainland Chinese investorsWang emphasized during a Bloomberg webinar that mainland Chinese citizens will not be able to participate in these ETFs, citing a statement from the Chinese State Council issued in September 2021. This statement prohibits financial institutions from engaging in crypto-related transactions, including account creation, fund transfers, and clearing services. As a result, Chinese investors are unlikely to engage with these products in the short term. Impact on regulatory environment and market accessWang expressed skepticism about the potential impact of spot Bitcoin and Ether ETFs in Hong Kong on the regulatory environment in mainland China. He stated that the launch of these ETFs is unlikely to open the crypto market to Chinese investors in the foreseeable future. Thomas Zhu, head of digital assets at China Asset Management, noted that the eligibility of mainland Chinese investors to acquire crypto ETFs in Hong Kong depends on forthcoming regulatory modifications. He highlighted the Mainland-Hong Kong Stock Connect, which allows mainland investors to trade eligible Hong Kong stocks and ETFs since 2014. Comparison with U.S. Bitcoin ETF marketDespite optimism surrounding the launch of spot crypto ETFs in Hong Kong, Bloomberg analyst James Seyffart drew attention to the significant difference in market size between the U.S. and Hong Kong ETF markets. Seyffart pointed out that Bitcoin ETFs in the United States have more assets than all ETFs in Hong Kong combined, emphasizing the vast disparity in market scale and impact. As the launch date for spot Bitcoin and Ether ETFs in Hong Kong approaches, stakeholders continue to monitor regulatory developments and market dynamics closely. 

XPLA and PERPLAY join forces to bolster rewarding mechanism to Web3 gamesSouth Korean gaming corporation Com2uS Group’s layer 1 blockchain XPLA has entered a business agreement with the mobile Game and Earn (G&E) platform PERPLAY to boost the sustainability of its ecosystem and take Web3 gaming to new heights, according to an official announcement on Thursday (KST).Photo by ROBIN WORRALL on UnsplashXPLA’s vision“XPLA is a project working towards promoting new levels of fun in Web3 gaming and building an ecosystem based on a fair system of sharing rewards with users,” said Paul Kim, Team Leader at XPLA. “Through this partnership with PERPLAY, we are one step closer to fulfilling our Web3 philosophy, which is centered around the participants in our ecosystem.”Rewards for everyoneThe PERPLAY app runs on a Proof of Play (POP) algorithm that employs a rewarding mechanism that distributes tokens to users based on their game playtime and collection of tiered NFTs. PERPLAY users can earn $XPER and $PER token rewards by playing any mobile game — existing or newly downloaded — that they have registered in the PERPLAY app.XPLA hopes to integrate this algorithm into its ecosystem to add a rewarding layer to various games on its mainnet, offering a unique and elevated gaming experience. The first of these games will be Com2uS Holdings’ popular mobile role-playing game (RPG) The Walking Dead: All-Stars.“We see this partnership with XPLA as an opportunity to further strengthen the PERPLAY user ecosystem,” said Lim Jae-chung, CEO of PERPLAY. “Starting with The Walking Dead: All-Stars, we will bring the PERPLAY experience to various Web3 games on XPLA.”In a related development, XPLA has partnered with Google Cloud, which will serve as a Volunteer Validator for its blockchain protocol. The collaboration with the cloud computing platform is expected to enhance the integrity of the XPLA network.