Thailand’s KBank uses stablecoins to enable baht to Singaporean dollar payments

Singapore Regulator Awards CMS License to AsiaNextAsiaNext, a joint venture between Tokyo-based financial services company SBI Digital Asset Holdings and Switzerland’s SIX Group AG, has received regulatory approval for its institutional-grade digital asset exchange in Singapore. The Monetary Authority of Singapore (MAS) granted AsiaNext an in-principle approval for a Capital Markets Services (CMS) license, marking a significant milestone for the company.Photo by Davis Sánchez on PexelsTaking to LinkedIn last week, the firm said that the achievement is a testament to the efforts it has made in terms of rigorous regulatory compliance. With this CMS license, AsiaNext is poised to become a trusted digital asset exchange catering specifically to institutional investors in Asia and globally. The joint venture, which was finalized in September 2021, brings together the expertise and networks of SBI Digital Asset Holdings and SIX Group AG to meet the growing demand for trading public and private digital assets.Singapore-based joint ventureChong Kok Kee, appointed as the CEO of AsiaNext in March 2022, and Neil Thomas, serving as the Chief Commercial Officer, lead the team. Their combined experience in the financial industry positions AsiaNext to deliver a comprehensive suite of services that meet the rigorous standards of institutional investors.The primary goal of AsiaNext is to bridge the gap between traditional finance and the digital asset space. Chong emphasized the importance of a secure, transparent, and compliant platform that instills confidence in market participants during an interview with Hubbis in 2022. The exchange aims to provide integrated listing, trading, and post-trade services for various digital assets, including digital payment tokens.AsiaNext recognizes the increasing demand for trading digital assets among institutional investors. To address this demand, the joint venture will leverage the extensive networks and expertise of SBI Digital Asset Holdings in Asia and SIX Digital Exchange in Switzerland and Europe. Both partners have already demonstrated their leadership in global digital asset markets through investments, issuances, and initiatives.By securing the CMS license, AsiaNext, which is based in Singapore, has taken a crucial step towards becoming a trusted platform for institutional investors in Singapore and beyond.SBI partnershipsFor its part, SBI has favored joint ventures and partnerships when it comes to its increasing involvement in the digital assets space. It has entered into a joint venture with Zodia Custody, a digital assets custodian which has been spun up by UK-based financial services giant Standard Chartered, to take on the Japanese market. Additionally, it has increased its shareholding in the custodian in recent months.Its crypto exchange subsidiary, SBI VC Trade, recently formed a partnership with the project team behind the XDC Network blockchain with a view towards making inroads into the Japanese market.AsiaNext is now focused on preparing for the launch of its digital asset exchange, which is scheduled to commence later in 2023. Having now established itself on a firm regulatory footing, and the support of its strategic partners, AsiaNext appears to be well-positioned in meeting the evolving needs of institutional investors in the Asian region.

Standard Chartered Muscling Into Asian Crypto SpaceUK banking giant Standard Chartered is making a concerted foray into the Asian crypto sector through its Singapore-based subsidiary, Standard Chartered Ventures.Photo by Kirill Petropavlov on UnsplashTargeting institutional businessThat’s according to a report by Nikkei Asia on Tuesday. It’s believed that the company is positioning itself as a trusted choice for institutional cryptocurrency clients amid the backdrop of digital token price volatility and recent upheavals in the industry. The move will pit the British bank directly against global crypto exchange Binance in key Asian markets, specifically Singapore and Japan.Rene Michau, the Global Head of Digital Assets at Standard Chartered, emphasized what he considers to be the bank’s unique advantage in the digital asset space, stating:“As regulated banks, we have a fairly deep infrastructure around risk, conduct compliance, and the activities that go along with crypto assets.”This solid infrastructure includes established risk frameworks, governance structures, and compliance tools that Standard Chartered is keen to bring into the cryptocurrency sphere, thus making it an attractive option for its clients.Zodia Custody and Zodia MarketsStandard Chartered’s substantial involvement in the cryptocurrency market is channeled through its majority ownership of Zodia Custody, responsible for safeguarding digital assets, and Zodia Markets, a crypto exchange tailored for institutional clients.Both entities have been making significant progress in bringing their offerings to market in recent months. Zodia Custody recently launched its services in Singapore, offering a secure solution for financial institutions to manage their crypto holdings. Last month it launched a crypto staking product targeted at institutional clients.In the same month, Zodia Markets achieved in-principle approval to trade as a broker-dealer in the United Arab Emirates. Zodia Custody has also been successful in the UAE, launching its crypto custodian service in Dubai in May.Japan and SingaporeThis concerted effort by Standard Chartered follows a broader trend where traditional financial institutions, such as DBS Group Holdings in Singapore, are entering the cryptocurrency market, capitalizing on the challenges faced by younger crypto players in proving their credibility.Binance rebranded its Binance Custody unit as Ceffu and expanded its offerings for corporate customers in Singapore. While Binance asserts the independence of Ceffu, the exact nature of their capital relationship remains undisclosed.A parallel competition is unfolding in Japan, where Binance Japan has entered the market and Standard Chartered’s Zodia Custody has formed a joint venture with SBI Digital Asset Holdings, targeting institutional clients.While Standard Chartered has achieved a lot through its crypto-focused subsidiaries in a short space of time, there’s always room for improvement. In June, Hong Kong’s banking regulator singled out Standard Chartered alongside HSBC, appealing to both banking groups to make greater efforts to bank crypto clients within the Chinese autonomous territory, as it looks to compete with Singapore in becoming a regional crypto hub.The cryptocurrency sector has witnessed increased scrutiny as virtual currencies like Bitcoin and Ether have gained popularity. The rise of digital token exchanges, each vying for custody of assets belonging to investors who have embraced cryptocurrencies, has sparked concerns about corporate governance and security.Giants in traditional finance, like Standard Chartered, are stepping in to offer institutional investors a safer path to engage with virtual assets while leveraging the trust associated with established brands.

Asian fund acquires majority stake in The BlockIn the wake of certain difficulties experienced following the FTX collapse, prominent crypto publication The Block has secured its future through a strategic sale to Singapore-based venture capital group Foresight Ventures.Taking to the X platform on Monday, The Block’s CEO Larry Cermak announced the acquisition, with Foresight Ventures taking a majority stake in the publication. The deal results in a valuation of the US media group at $70 million. Cermak stated:”This [transaction] gives The Block a fresh start ahead of the bull market and provides us with more capital to build out new exciting products and expand our footprint into Asia and the Middle East.”Cermak also thanked New York-based investment bank Moelis & Company for its help in running the process.Photo by Kelly Sikkema on UnsplashFTX controversyThe sale should allow the firm to move on from a difficult situation which saw it implicated in the activities of convicted fraudster and former FTX CEO Sam Bankman-Fried (SBF). The fallout from the collapse of the FTX exchange in November of last year included the revelation that The Block had relied on undisclosed loans from SBF to sustain its operations.Michael McCaffrey, the former CEO of The Block, resigned last December after it was disclosed that he had borrowed $43 million from SBF’s Alameda Research, a crypto trading company. This financial arrangement was allegedly aimed at supporting the media company and facilitating property acquisitions.Following the conviction of SBF on charges of fraud and money laundering in New York earlier this month, The Block faced challenges and turned its focus towards building a more robust institutional customer base. The media group has been actively engaged in compiling industry deals and offering subscription-based news services.McCaffrey had taken loans totaling $27 million to buy out shareholders and support the media group, with an additional $16 million used for property acquisition in the Bahamas. The financial arrangement with Alameda was undisclosed to the broader team at The Block, as revealed by Bobby Moran, the company’s chief revenue officer at the time.It’s still unclear if McCaffrey has repaid these loans to the FTX Debtor that is currently managing the FTX business. FTX filed for Chapter 11 bankruptcy in November 2022 and with that, it is in the process of being restructured.$56 million investmentAs part of the deal, Foresight Ventures will invest $56 million, securing an 80 percent stake in The Block, according to a source cited by the Financial Times (FT). The investment is a strategic move, especially considering the recent slowdown in venture capital investment in the crypto market.While investors injected approximately $30 billion into crypto projects in both 2021 and 2022, the figure plummeted to $7 billion by the end of September of this year, according to PitchBook.Foresight Ventures CEO Forest Bai confirmed to the FT that The Block will continue to operate as an independent business. Bai stated: “We think The Block is one of the crown assets in the crypto media space. Our view is that the media aspect will continue to drive education and adoption in the space.”