Gemini receives in-principle MPI license approval in Singapore

Further Trials Required Before Determination of eHKD Launch DateThe Hong Kong Monetary Authority (HKMA) is taking a cautious approach to the launch of its retail central bank digital currency (CBDC), the e-HKD, stating that it will only go live once key stakeholders have gained sufficient experience to compete effectively in the payment sector.Photo by Jimmy Chan on PexelsAwaiting greater clarityIn an interview with the South China Morning Post (SCMP) earlier this week, Eddie Yue, CEO of the HKMA, revealed that initial experiments with e-HKD have shown promise, but the central bank is still waiting for greater clarity on technological, legal, and societal aspects. The CBDC trial began in May, involving 16 commercial banks, payment providers, and gross settlement platform Ripple, with a focus on exploring various use cases.Yue emphasized that they are still in the early stages of the trial process. The central question remains finding a use case that outperforms current retail payment methods in terms of safety, speed, or convenience.Programmable paymentsAmong the use cases explored in the pilot, programmable payments have stood out. This functionality allows consumer funds to be restricted for specific purposes. Bank of China (Hong Kong) has been at the forefront of this study, allowing select users to make payments using the test CBDC.The potential applications of the CBDC extend to tokenized deposits and tokenized assets, the aspect of the project which Ripple has involved itself with. The HKMA has shown interest in tokenization, especially after the successful completion of Project Evergreen, a blockchain-based bond issuance project.While the domestic use of the CBDC faces challenges, the HKMA is actively considering its role in cross-border payments. The HKMA has been involved in the Bank for International Settlements (BIS) mBridge pilot, which is expected to release a minimum viable product (MVP) by 2024. It’s working alongside the Bank of Thailand and the central bank of the United Arab Emirates (UAE) on that project. Hong Kong and the UAE have been working towards strengthening financial cooperation in respect of crypto regulation.Following the achievements of the initial pilot, the HKMA is open to bringing in new participants. Rumors suggest that up to 20 central banks are closely monitoring the project’s developments.Collaboration with mainland ChinaRecent weeks have seen Hong Kong and China working on improving cross-border transactions. In July, it was announced that Chinese tourists visiting Hong Kong would be able to use their digital yuan wallets to pay for goods and services at select locations.Conversely, Hong Kong tourists visiting mainland China could use the digital yuan for retail transactions. A new upgrade will enable tourists to top up their digital yuan wallets using Hong Kong’s Faster Payment System (FPS) or major payment providers like Mastercard and Visa.While the exact launch date for e-HKD remains uncertain, the focus on practical use cases and technological advancements is expected to yield a robust and innovative CBDC for Hong Kong’s future. On the international front, the mBridge project is set to play a pivotal role in the broader adoption of CBDCs across borders, potentially revolutionizing global payment systems.

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.

Mohammed AlKaff AlHashmi, co-founder of the HAQQ Network, has expressed the view that Indonesia has considerable potential to establish itself as Asia’s largest crypto hub. AlHashmi made the comments in a discussion with Crypto.news. HAQQ Network claims to be a scalable proof-of-stake-based blockchain, capable of high throughput. The network is fully compatible and interoperable with Ethereum. The project also focuses on the development of a Sharia-compliant Web3.  While the project is headquartered in Niqa Al Dheeb in the United Arab Emirates (UAE), Indonesia is also a significant market for the company, given that it has just received regulatory approval for the HAQQ Network’s native token from the Indonesia Financial Services Authority (OJK). Islamic Coin (ISLM) is the network’s native token. It is being offered as a Sharia compliant digital currency, with Sharia law being the Islamic legal system that governs the lives of millions of Muslims throughout the world.Photo by Nick Agus Arya on UnsplashGateway marketOffering his thoughts on the Indonesian crypto market, AlHashmi stated: “When we look at Indonesia as a market, I would say it is incomparable. It can be number one to be honest. Because I have seen statistics of growth happening in a very big volume. The volume of trade, transactions and users, I think Indonesia can be very soon one of the top 3 countries in the world.” Indonesia takes on added importance for the HAQQ Network project. The project’s co-founder sees the Southeast Asian nation as a gateway into a broader market given that it has the largest Muslim population in the world. He said that if his project is successful in Indonesia, then there will be no barrier to enter markets in other predominately Muslim nations. The entrepreneur believes that Indonesia is on the cusp of realizing its potential within the crypto sector. He said that Indonesia has a “competitive edge” when compared with other nations. Population size and rapid economic growth feed into that potential, with AlHashmi claiming that Indonesia is primed to become the largest crypto hub in Asia. Smooth regulatory processFrom a regulatory perspective, he also feels that Indonesia is outperforming other jurisdictions. The HAQQ Network project team experienced a smooth process in acquiring regulatory approval for ISLM recently. He believes that although the process was detailed, it was completed quicker than he would expect in other countries.  AlHashmi added that “regulations are flexible enough to enable project owners to do good business to protect the community as well.” Local regulator, the OJK, has expressed an interest in exploring the development of Sharia-compliant crypto assets. Earlier this month, Hasan Fawzi, OJK's executive head overseeing crypto assets supervision, told local media that the regulator is open to advancing Sharia-based cryptocurrencies.  Hasan stated: “Globally and regionally, this is a common practice. It is not unusual to create crypto assets that adhere to Sharia principles.” The OJK executive is particularly interested in tokenization of real-world assets (RWAs). He believes that if this proves to be successful, it could lead to further Sharia-complaint crypto products being launched. The OJK is currently testing tokenized RWAs within a sandbox environment.