Japan’s SMFG expresses interest in stablecoin launch

China's Ministry of Industry and Information Technology (MIIT) has stepped into the realm of the metaverse by forming a working group tasked with setting standards for the burgeoning technology.Photo by Li Yang on UnsplashChinese corporate participationThe announcement, made on Friday, revealed that the working group would comprise representatives from the government, academic institutions and major corporations. In its statement, MIIT explained that the establishment of the metaverse working group aligns with the nation's emphasis on industrial development within the technology sector. Notably, the group will feature key figures from major Chinese tech corporations, including Huawei, Ant Group, ZET, Tencent, Baidu, NetEase, Sense Time and others. Public feedback on the selection of group members is invited until Feb. 18, although the specific areas of focus for the group are not detailed in the document. Initial in-roadsThe working group’s headline tech participants have all made some initial in-roads into metaverse technology. Baidu established its own metaverse project, XiRang, in 2021. Late last year it partnered with Qualcomm on the use of extended reality (XR) technology for use on a new metaverse platform. Huawei is paying attention to the promising metaverse space by building up a catalog of metaverse-related patents. Like Baidu, Tencent is focusing on developing XR technology with metaverse development in mind. Last year NetEase collaborated with a Chinese liquor brand to launch a winery-themed metaverse, while issuing NFTs linked to liquor bottles. Establishing metaverse standardsChina has been contemplating the formulation of metaverse standards for some time. In September 2023, MIIT advocated for the creation of a dedicated working group to address the ongoing challenges in metaverse technology. The government's overarching objective is to ensure the healthy and orderly development of the metaverse industry through standardization and guidance, reducing redundant investment costs and fostering collaborative forces for industrial development. Analysts from JPMorgan foresee a potential uptick in the value of Chinese tech stocks if the metaverse gains traction in the country. According to their analysis, Chinese web giants like Tencent and NetEase stand to benefit significantly from metaverse development. Even non-web companies such as China Mobile, Sony and Agora could witness positive impacts should the technology gain widespread adoption. In fact, China Mobile led the development of a metaverse industry alliance in China in 2023. Regional developmentIn a December document, MIIT outlined plans to formulate strategy documents clarifying the development path of Web3.Last year, several local governments in China committed to the development of the metaverse industry. Sichuan, a province once known as a crypto mining hub, aims to reach a market size of 250 billion yuan ($35.1 billion) in the metaverse industry by 2025. Last May, the city of Zhengzhou announced policy proposals to support metaverse companies. The same month, the province of Henan established a $21.7 million fund to support metaverse-related projects. The following month, an initiative was established in Nanjing to nurture metaverse development. Additionally, Shandong province has plans to grow its metaverse-related initiatives to achieve a market size of 150 billion yuan by 2025. 

Dunamu’s Q1 Revenue Drops 28.6% Amid Global Liquidity ContractionDunamu, the operator of Upbit, a major cryptocurrency exchange in South Korea, announced today the release of its Q1 2023 report.Photo by Tiger Lily on PexelsDeclining revenueAccording to the Data Analysis, Retrieval and Transfer System (DART) of the Financial Supervisory Service (FSS), Dunamu’s consolidated sales revenue for the first quarter of 2023 was 304.8 billion KRW ($231.3 million). This figure represents a 28.6% decrease from 426.8 billion KRW ($323.9 million) recorded during the same period last year. Additionally, its operating income declined by 26.3% to 211.9 billion KRW ($160.8 million) from 287.8 billion KRW ($218.4 million). However, its net income showed an increase of 54.9%, reaching 326.3 billion KRW ($247.6 million).Global liquidity contractionDunamu attributed the decline in revenue to several factors, including the ongoing global liquidity contraction, economic downturn, and reduced investor confidence. These factors collectively impacted the company’s financial performance during the first quarter of 2023. On a positive note, Dunamu linked the net income increase to the recovery and upward movement of digital asset prices in comparison to the previous quarter.Established in April 2012, Dunamu has enjoyed noticeable growth by offering a range of services related to digital assets, securities, and asset management. In recent years, it has been tapping into new technology trends like non-fungible tokens (NFTs) and metaverses to adapt to the era of Web3 and enhancing transaction security and convenience for valuable assets.As a company with a shareholder base exceeding 500, Dunamu has been disclosing its business reports as well as quarterly and semiannual reports since 2022 in line with the Korean Capital Markets Act’s requirements.

Circle introduces Circle Mint with zero-fee USDC mintingIn a move designed to enhance accessibility and compliance, Circle, the issuer of leading U.S. dollar stablecoin USDC, has introduced the “Circle Mint” facility.Singapore launchIn a recently published blog article on its website, the company outlined that the zero-fee minting service is set to launch initially in Singapore. In June, Circle Internet Singapore, the company’s Singapore-incorporated subsidiary, secured a Major Payments Institution (MPI) license from the Monetary Authority of Singapore (MAS). In this most recent announcement, the firm indicated that given the MPI licensing award, it was most appropriate to launch the service initially in Singapore.Circle executives, alongside its co-founder and CEO Jeremy Allaire, were attendees at the Singapore Fintech Festival on Wednesday, an annually organized knowledge platform for the global fintech community. Taking to the X platform, Allaire stated:“It was an honor to host [Singapore President, Tharman Shanmugaratnam] with the @circle team at @sgfintechfest where we officially launched Circle Mint Singapore.”Photo by Mike Enerio on UnsplashCircle Mint facilityCircle Mint Singapore will attempt to strategically position itself as a trusted gateway to the world of digital currencies, emphasizing compliance with MAS regulations. For Singapore-registered entities, the facility offers a range of benefits.Rather than a traditional bank account, Circle Mint is a digital wallet that enables users to send, receive and store digital assets. There will be no minting fees as part of the offering. Customers will be able to take advantage of a zero-fee product offering for both the minting and redemption of USDC. The move eliminates additional risks and additional fees, as well as the ability to do away with the lengthy transaction times often associated with brokers and resellers.Circle Mint Singapore has been designed to align seamlessly with MAS regulations. In that way, the company can reassure its customer base that financial activities are conducted efficiently, securely and compliantly within the regulatory framework.Instant availabilityInstant availability is another feature that Circle is enabling through its Circle Mint product offering. Fiat funds from users’ bank accounts can be swiftly and automatically converted to USDC. That’s thanks to the instant settlement networks of participating banks. Circle Mint Singapore is also planning to expand access to regional banking rails for near-instant settlement, streamlining transactions for users.As digital currency adoption gains momentum in the Asia Pacific (APAC) region, Circle Mint Singapore’s initiatives have the potential to play a pivotal role in making digital currencies more accessible for businesses in this dynamic market.Asian market emphasisIn addition to this latest product offering, other recent activities of the global financial technology firm in recent weeks suggest that it has placed a strong emphasis on market growth in the APAC region.In September, the firm partnered with Southeast Asian super-app Grab. As part of that collaboration, Circle’s Web3 services platform is being integrated into the app to facilitate blockchain-enabled solutions. The move will see Grab’s 25 million users exposed to the facility of a digital wallet within the app.Similarly, the following month, Circle followed up with a deal with Taiwan FamilyMart, a convenience store chain, and the BitoPro cryptocurrency exchange. Once again, Circle’s Web3 services platform is being integrated, this time into the FamilyMart app, so as to enable the redemption of loyalty points in USDC.