Ozys and Creder to tokenize precious metals

MHC Digital Group, an Australian digital assets management platform, has entered into a partnership with USDC stablecoin issuer Circle Internet Financial, with a view towards increasing the circulation of USDC within Australia and the Asia-Pacific (APAC) region. MHC was founded by well-known venture investor Mark Carnegie, with the company having offices in Sydney and Singapore. The firm will work with Circle to distribute USDC in Australia and within the APAC region. MHC has been marketing its services towards institutional investors and it’s that same client group that the two firms want to target in order to increase USDC circulation. The firm will provide “cost-effective and efficient USDC access” where institutional clients are concerned.Photo by Catarina Sousa on PexelsCrypto ‘a better mousetrap’ In a media release published on behalf of the two companies, Carnegie claimed that while many people still claim that there is no use case for crypto, hundreds of billions move globally at a fraction of the cost experienced via the traditional financial system. “Crypto is simply a better mouse trap for the vast majority of international payments,” he added. Commenting on the development in an interview with the Australian Financial Review, Carnegie stated:“I’m hoping we can show there are hundreds of millions of dollars of forex [foreign exchange] trading fees, where super funds are getting their faces ripped off by Macquarie Bank and the other incumbent banks.” Appealing to pension funds Carnegie wants to get large pension funds on board in using USDC. He pointed to the fact that global banks make $170 billion from corporations and individual investors through the movement of funds over the SWIFT network. He can see that major savings can be made if USDC is used relative to these fees. Despite all this, Carnegie acknowledges that it will be a hard sell to get them on board. As part of these plans, MHC Digital will be launching an over-the-counter (OTC) trading desk, which will be targeted towards hedge funds, crypto enterprises and high-net-worth individuals. APAC opportunity Kash Razzaghi, Circle’s chief business officer (CBO), identified APAC as presenting with an adoption opportunity beyond institutional clients. Razzaghi stated: “With its young, mobile-first and digital wallet-ready population, the Asia Pacific region is ahead of the curve when it comes to digital asset adoption." Carnegie appears to be similarly enthusiastic when it comes to the APAC region. In an interview with CNBC back in January, he suggested that the crypto bull run was “an Asian story this time round.” It’s understood that the two companies are also considering collaborating on the issuance and distribution of an Australian dollar (AUD) denominated stablecoin. This development is the latest in a string of initiatives taken by Circle to bring about USDC adoption in the APAC region. In 2023 the company partnered with SBI Holdings with the objective of enhancing the circulation of USDC within the Japanese market. The very same rationale resulted in it partnering with Tokyo-based crypto trading platform Coincheck in February 2024. The company has also tried to trigger adoption at a retail level, through collaborations with FamilyMart convenience stores in Taiwan and Southeast Asian super app Grab. 

Global crypto exchange platform KuCoin has announced the arrival of “KuCoin Thailand” (to be also known as “KuCoin TH”) in the Southeast Asian country. In a press release publicizing the development, the company outlined that the new platform has been formed following a rebranding of ERX, the first virtual currency exchange to be licensed and supervised by Thai regulator, the Securities and Exchange Commission (SEC).Photo by Bharath Mohan on UnsplashGlobal infrastructure enhancing service deliveryERX has rebranded to KuCoin Thailand, but the exchange will continue to be operated by ERX Company Ltd, while collaborating with KuCoin and benefiting from KuCoin’s global market presence and global exchange infrastructure. Commenting on what KuCoin brings to the partnership, ERX CEO Att Tongyai Asavanund stated: “With the global infrastructure and resources supporting us, we’re enhancing our ability to deliver localized solutions tailored for the Thai market. KuCoin Thailand reflects our continued mission — strengthened by strong technology and a broader global vision.” ERX Board Director Henry Chen said that the objective is “to build a leading digital asset platform in Thailand with global vision, institutional grade service and state-of-art technology.”Southeast Asian expansionFounded in China in 2017, although operating on a global basis, KuCoin continues to have stronger ties to Asia. Following the implementation of restrictions on crypto trading in China a few years ago, the company moved its headquarters to Singapore, subsequently opting to establish itself in the Seychelles. This latest development further strengthens KuCoin’s credentials within the Asian region. In a blog post, the company marked the event as a “key step forward” in its strategic expansion across Southeast Asia. Existing ERX users have already been migrated over to the new platform. The company has placed a notice on its website advising users to download the KuCoin TH app, which has been made available via Android and iOS. Last month ERX announced that it had received approval from the Thai SEC to activate its Crypto Exchange License. The company was first established in Thailand in 2019. It has been under the supervision of the local regulator since 2020.  The ERX platform was originally built out using AlphaPoint white-label software. It received a digital assets exchange license from the SEC in July 2020. ERX parent company, New York-based digital asset management firm Elevated Returns, has been working within the real-world asset (RWA) tokenization arena for some time. In 2018, the company was involved in a $18 million deal to tokenize the St. Regis Aspen Resort, a luxury hotel and resort located in Colorado, United States. Previously, KuCoin had remained unlicensed in Thailand. In recent times, the Thai authorities have made efforts to block unlicensed exchanges from engaging with investors in Thailand. Last month Thailand’s SEC filed a lawsuit against KuCoin competitor OKX for allegedly running an unlicensed exchange. KuCoin Thailand will compete with eight other licensed exchange businesses within the Thai market. These include WAAN Exchange, Gulf Binance, Thai Digital Assets Exchange, InnovestX Securities, GMO-Z.com Cryptonomics, Upbit Exchange, Bitkub Online and Orbix Trade.

The recent 19b-4 approval of spot Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) is putting pressure on South Korean financial regulators to revisit their policies on digital assets. The SEC's decision to allow ETFs for Ethereum, the world's second-largest cryptocurrency, on May 24, 2024, follows its earlier endorsement of Bitcoin ETFs in January 2024. This move is seen as a significant step in merging traditional finance with the digital asset sector.Photo by DrawKit Illustrations on UnsplashKorean regulatory cautionIn contrast to the progressive stance in the U.S., the Korean Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) have maintained a cautious approach regarding the integration of crypto assets into traditional securities markets. According to current regulations under the Capital Markets Act, ETFs in Korea are limited to traditional underlying assets such as financial instruments, securities, international currencies and commodities. These foundations are crucial for the creation of financial derivatives, leaving little room for digital assets under current laws. Calls for regulatory reforms and market implicationsThe decision by the SEC is expected to influence the Korean regulators to update their views on digital assets, according to local media and industry experts. Jung Eui-jung, the head of the Korean Stockholders’ Alliance, has advocated for Korea to emulate the U.S. by approving Bitcoin and Ethereum ETFs. He expressed concerns that continued regulatory hesitance could lead to investor funds migrating to more progressive markets like the U.S., potentially positioning the U.S. to broaden its crypto market further. Xangle, a digital currency data provider in Seoul, has also criticized the current regulations as outdated, emphasizing the need for revisions to accommodate the increasing relevance of digital assets in global finance.