BRC-20 token standard architect objects to proposed fork

OKX Appoints Nomura Portfolio Co as CustodianSeychelles-headquartered OKX, the world’s second-largest cryptocurrency exchange, has partnered with Komainu, a digital asset storage firm backed by Tokyo-based global financial services group, Nomura, to provide digital asset custody services for institutional customers.This collaboration allows institutional users to store their cryptocurrencies within Komainu’s custodian while utilizing the funds for trading on the OKX exchange. The partnership highlights the trend of vertically integrated crypto exchanges adopting practices from traditional finance, employing third-party custodians to segregate operations and mitigate risks.Photo by Karolina Grabowska on PexelsInaugural Komainu clientAs the inaugural client of Komainu Connect, a regulated settlement and custody system for institutions, OKX now offers its customers 24/7 trading with a combination of cold storage, multiparty computation (MPC), and hardware security modules (HSMs). Lennix Lai, the Chief Commercial Officer of OKX, explained that funds deposited in a Komainu custody wallet are transferred to a Komainu collateral wallet, which is then linked to an OKX account. This integration allows for seamless balance mirroring and active trading across OKX’s extensive range of spot and derivatives markets.Asset custody optionalityIn a tweet posted on Tuesday, OKX President Hong Fang wrote: “We are agnostic re how customers want to custody their assets. Third party, platform, self-custody.”Komainu Connect’s collateral wallet, with full transparency to OKX, operates within a tri-party legal agreement involving Komainu as the custodian, OKX as the liquidity venue and provider, and Komainu’s client as the client of OKX. Sebastian Widmann, Head of Strategy at Komainu, elaborated on this agreement, emphasizing how it enables Komainu’s clients to trade directly on the exchange while Komainu handles the settlement requirements. This framework ensures a secure and efficient trading experience for institutional users.While specific details about the volume of assets to be transferred to Komainu were not disclosed, Lennix Lai stated that the amount was “significant” and expected to increase as both firms enhance their institutional product offerings. OKX believes in providing users with a range of solutions, including on-exchange, off-exchange, and third-party balance mirror custody options. By partnering with Komainu, the erstwhile Beijing-based exchange aims to expand its service offerings and cater to the evolving needs of its institutional clientele.Komainu was established in 2020 through a joint venture involving Nomura, digital asset manager CoinShares, and digital asset security company Ledger. The firm operates under regulatory oversight in St. Helier in the Jersey Islands and in Dubai, with offices located in London, Dublin, and Singapore. Its robust regulatory compliance measures and strategic partnerships position Komainu as a trusted custodian within the crypto industry.Market maturationThe collaboration between OKX and Komainu represents a significant development in the maturation of the crypto market. By leveraging Komainu’s custody services, OKX aims to enhance the security and reliability of its platform, mitigating potential risks associated with holding customer assets. This partnership also underscores the growing demand for institutional-grade infrastructure and services in the cryptocurrency ecosystem.As the crypto industry continues to evolve and attract institutional investors, custodial solutions provided by trusted and regulated entities like Komainu are crucial for fostering confidence and facilitating broader participation. The OKX-Komainu partnership demonstrates the convergence of traditional finance practices with the emerging crypto landscape, highlighting the importance of robust custody solutions and risk management frameworks in the digital asset ecosystem.

HKEX Launches Blockchain-Based Settlement PlatformHong Kong Exchanges and Clearing Limited (HKEX) has unveiled a blockchain-based settlement platform in a move that could potentially transform the landscape of international stock trading, bolstering transparency, efficiency, and operational security.Photo by Ruslan Bardash on UnsplashHKEX SynapseAccording to an announcement on Wednesday (local time), the new platform is called Synapse, and it is set to launch on October 9. The platform utilizes smart contracts developed in the DAML programming language, offering a range of benefits for market participants.Synapse’s primary objective is to streamline post-trade workflows, minimize settlement risks, and enhance transparency in the financial markets. It will be deployed on HKEX’s Stock Connect, a program that allows international investors access to over 1,000 mainland Chinese stocks through Hong Kong routing.With an average daily turnover of RMB 109.3 billion ($15.18 billion) in the first half of 2023, up 5% from the previous year, with a 50% increase from 2020 levels, Stock Connect has established itself as an important channel for international investment.DAML-based smart contractsOne of Synapse’s standout features is its use of DAML, an open-source smart contract language. DAML has the capability to synchronize data across both blockchains and centralized databases, which can significantly improve operational efficiency. By incorporating smart contracts into the settlement process, Synapse enables automatic generation of settlement instructions, reducing the time and manual effort required for trade confirmation. This not only reduces the likelihood of errors but also accelerates settlement, enhancing liquidity and boosting investor confidence.Additionally, Synapse facilitates concurrent processing by simultaneously generating settlement instructions for all parties involved in the trade. This near-instantaneous status update mechanism is especially crucial when connecting traders across different markets. HKEX’s connection to Hong Kong’s Depository Trust and Clearing Corporation via its Institutional Trade Processing service further centralizes cross-border transaction matching, creating a robust ecosystem for seamless trading.Synapse’s launch reflects HKEX’s interest in nurturing international participation where Mainland China’s equity markets are concerned. Glenda So, HKEX Group Head of Emerging Business and FIC, expressed her enthusiasm for the platform’s potential to strengthen both market and investor growth strategies. She believes that Synapse will not only enhance post-trade efficiencies but also contribute to building a more resilient financial ecosystem.Established interest in crypto/blockchainThis is not HKEX’s first expression of interest in blockchain-based technology. In a report it published earlier this year, the Hong Kong stock exchange concluded that crypto exchange-traded funds (ETFs) have the potential to play an important part in building the next phase of digital asset expansion in Asia. Trading in the first crypto ETFs commenced on the platform in December of last year.It’s worth noting that Hong Kong has been rapidly evolving into a hub for Web3 firms, further emphasizing the importance of platforms like Synapse to enhance the efficiency and security of financial transactions in this dynamic environment. While developments in the crypto space are ongoing, Synapse’s blockchain-based settlement platform represents yet another milestone in the evolution of crypto and blockchain-centric financial infrastructure in the region.

SC Ventures cues up $100M crypto startup investment vehicle in UAESC Ventures, the Singapore-headquartered fintech investment arm of British financial services giant Standard Chartered, is set to forge a “Digital Asset Joint Venture” investment company in the United Arab Emirates (UAE) in collaboration with Japanese financial giant SBI Holdings.Photo by ZQ Lee on UnsplashBroad spectrum of crypto sector investmentThe CEO of SC Ventures, Alex Manson, outlined the joint venture’s strategic objectives in a press release published from Dubai on Thursday. Manson emphasized a focus on making strategic and minority investments in crucial areas such as market infrastructure, risk management, compliance tools, DeFi, tokenization, consumer payments and the metaverse.SBI Holdings has been collaborating quite a bit with Standard Chartered when it comes to the digital assets space over the course of the past year. It has invested in Standard Chartered subsidiary company Zodia Custody, a digital assets custodian. Subsequently, Zodia Custody has gone on to launch its services in Dubai, and in September, the company launched its services in Singapore.Meanwhile, SBI is similarly invested in Standard Chartered subsidiary Zodia Markets, an exchange and brokerage platform which recently received approval to trade in the UAE as a broker-dealer. A report by Nikkei Asia last month outlined that Standard Chartered is very much making a concerted effort to muscle its way into the Asian crypto space.Speaking at RippleSwell, an event held in Dubai earlier this week organized by blockchain company Ripple Labs, Zodia Custody CEO Julian Sawyer stated:“Blockchain is the future, tokenization is the future. It’s a question of how we get there and what speed we do that.”Building out a regional hubThis recent partnership comes as the UAE works towards strengthening its position as a fintech hub, leveraging improved infrastructure and a local talent base. Despite its roots in the UAE, the joint venture aims to explore opportunities within the global digital asset ecosystem. Manson highlighted the commitment to broader exploration beyond the local market, indicating a global perspective in navigating emerging opportunities.This development follows Standard Chartered’s earlier memorandum of understanding with the Dubai International Financial Centre in May. This agreement granted the bank approval to extend digital asset custody services to institutional clients on a global scale.While deeply entrenched in the crypto custody business, Standard Chartered is also actively engaging with the digital economy’s broader facets. In June, the bank partnered with PricewaterhouseCoopers China to produce a white paper on applications for central bank digital currency in the Greater Bay Area of China, encompassing Guangdong province, Hong Kong and Macao.Both SBI and Standard Chartered are collaborating with the Monetary Authority of Singapore (MAS) in a project that seeks to build a comprehensive framework for the provision of interoperable and open networks for tokenized digital assets.This multifaceted approach positions Standard Chartered as a key player navigating the dynamic intersection of traditional finance and the evolving digital landscape. Market reaction to this recent development has been positive with one crypto sector participant stating:”Excited to see Standard Chartered expanding its services to accommodate the growing demand for crypto custody, especially in the UAE where the regulatory environment appears to be more favorable. This move could pave the way for increased institutional adoption of Bitcoin and Ethereum.”