Korea Exchange to conduct CBDC pilot test in H2

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. 

Xangle and CryptoTimes partner to advance Web3 adoption in Korea and JapanXangle, a digital asset data research platform based in South Korea, announced Wednesday (local time) a collaboration with Japanese crypto media CryptoTimes with the goal of advancing the widespread adoption of Web3 technology.Photo by Shubham’s Web3 on UnsplashSharing translated reportsThe two platforms have agreed to translate and share each other’s industry analysis reports on their respective platforms. Through this partnership, they aim to bridge the gap between Korea and Japan in sharing Web3 strategies and regulatory updates, which previously faced challenges due to language barriers.As a first step in this joint effort, the Japanese translation of Xangle’s “Waiting for the Spring of Music NFTs: Industry Perceptions and Future Potential” and the Korean translation of CryptoTimes’ “Nike, Adidas and Puma’s Web3 Trend Comparison Report” were made accessible to their platform users on Nov. 27.In particular, Xangle’s reports will be featured in CryptoTimes’ research repository, CT Analysis. Through this, Xangle aims to reach a wider audience in Japan.Stronger communication between Korea and JapanJunwoo James Kim, co-CEO and co-founder of Xangle, shared his excitement regarding their collaboration with CryptoTimes, a renowned media outlet in Japan. He emphasized the significance of both Korea and Japan emerging as leading forces in the Web3 industry within Asia. Kim added that this partnership will foster stronger communication between the blockchain sectors of both nations, accelerating the widespread adoption of Web3.Discussing Web3 development, Kim outlined that we are currently in the third phase, centered around its widespread adoption. The first phase saw the birth of various ideas, while the second phase involved testing these concepts for viability.Shingo Arai, co-founder of Rokubunnoni, which operates CryptoTimes, emphasized that the trends in the Korean Web3 market are not just informational but serve as significant indicators. He noted that sharing reports is merely the beginning. Arai expressed their intent to continuously seek various collaboration opportunities with Xangle, aiming to close the information gap between Korea and Japan in the Web3 arena.

Mox, a virtual bank in Hong Kong and a subsidiary of Standard Chartered, has introduced exchange-traded fund (ETF) trading for cryptocurrencies, marking a significant expansion into the digital asset space. The bank announced on Aug. 7 that it now offers its customers the ability to trade spot Bitcoin and Ether ETFs directly on its platform, making it the first virtual bank to do so.Photo by Florian Wehde on UnsplashExpanding crypto offeringsThe digital bank is also planning to broaden its cryptocurrency services. Future expansions may include direct purchasing and trading of cryptocurrencies in partnership with a licensed exchange. This move aligns with Hong Kong’s regulatory framework, which has been adjusting to accommodate and regulate crypto activities more robustly. Competitive pricing and user engagementMox is promoting itself as an economical choice for crypto ETF trading, with fees set at 0.12% of the transaction volume, with a minimum charge of 30 Hong Kong dollars ($3.85) for Hong Kong-listed spot and derivatives ETFs and $0.01 per share with a minimum of $5 for U.S.-listed derivatives ETFs. As of now, a local report reveals that 28% of Mox's customers engage in cryptocurrency investments, with 18% actively trading. The introduction of these ETFs is seen as a move to empower these customers to access emerging asset classes securely. Future aspirationsBarbaros Uygun, the CEO of Mox, expressed that the inclusion of crypto ETFs is part of the bank's broader strategy to set a global benchmark from Hong Kong. The bank aims to stay competitive by innovating and adapting to market changes. Jayant Bhatia, the bank’s chief product officer, hinted at more extensive plans in the crypto investment realm, although specifics on the timeline for launching broader crypto trading services were not disclosed. Despite the launch, the overall uptake of crypto ETFs in Hong Kong has been lukewarm. Bosera HashKey, ChinaAMC and Harvest Global, the issuers of the three spot ETFs in Hong Kong, have seen minimal activity with combined assets under management totaling just $236.3 million. The launch by Mox could potentially invigorate the market for crypto ETFs in Hong Kong as the region strives to become a leading hub for cryptocurrency in Asia.