Stacks establishes foundation within UAE’s ADGM

Over the course of the past two weeks, the unit price of Ethereum (ETH) has surged 32%, with a report from a Singapore-based crypto financial services firm asserting that the Asian market has had a large part to play in that increase. Taking to X on July 16, Matrixport, a crypto financial services platform, provided its daily analysis in which it suggested that “Ethereum’s recent outperformance appears to be heavily influenced by Asia.”Photo by DrawKit Illustrations on UnsplashAsian market influenceThe company included a graph in which it had plotted Ethereum’s recent performance during Asian trading hours, asserting that as much as 17% of the uptick in the Ether unit price can be accounted for by the actions of market participants within the Asian market. It added:"The influence of the Asian market in the pricing of crypto assets is continuing to rise, whether in terms of volatility or trading momentum.” ETH ETFs in Hong KongSpot ETH exchange-traded funds (ETFs) were approved in Hong Kong in April 2024. Hong Kong ETH ETF volumes have risen substantially in July, with significant inflows being recorded related to both retail and institutional investors.  In the past, many commentators have suggested that the addition of staking would be an attractive prospect for institutional investors who like the idea of accumulating an ongoing yield. With that, Asian investors may be enticed to delve further into Ethereum positions going forward, given that ETF issuers are trying to add that component to their offerings. Huaxia Fund, a subsidiary of China Asset Management (ChinaAMC), is preparing to launch staking as part of its ETH ETF. Another potential driver for ETH in Asia in the future lies with the ongoing enablement of trading via established institutions. Earlier this week, China Merchants Bank’s brokerage arm received a virtual asset license in Hong Kong to trade crypto assets. It’s the first mainland China-affiliated brokerage to be awarded such a license, with licensing enabling it to offer trading services related to assets like Ether. Global assetWhile Asia is playing a role in ETH’s recent move upwards, the asset is traded globally and with that, factors further afield are also playing a role. Tom Lee, founder of American financial research firm Fundstrat, pointed out on X that ETH had been range-bound since 2021. However, he believes that the rise of stablecoins, which by and large run on Ethereum, together with ongoing growth in the tokenization of real-world assets (RWAs), is driving demand for the digital asset. While Bitcoin treasury companies have played a significant part in driving Bitcoin in recent months, Ethereum is starting to see similar activity. Lee made the point that Strategy (formerly MicroStrategy) “set the standard for Treasuries,” but that now BitMine “wants to be the Microstrategy of Ethereum.” The crypto mining and treasury firm confirmed on July 17 that it now holds $1 billion worth of Ethereum. Arthur Hayes, co-founder of BitMEX and chief investment officer (CIO) at Hong Kong family office, Maelstrom, said that it was “ETH szn” and that the Maelstrom Fund is buying the digital asset. Tom Dunleavy, head of venture at Varys Capital, asserts that ETH will hit a unit price of $10,000 by the end of 2026.

Ant Group Targets Web3 Developers With New Brand LaunchChina’s Ant Group, the powerhouse firm behind the world’s largest mobile payment platform, Alipay, has made a strategic move by introducing its new blockchain-focused sub-brand, ZAN.The initiative signals Ant Group’s intention to carve out a specific niche in the blockchain sector while simultaneously preparing for a potential initial public offering (IPO) that is free from its affiliations with Web3.Photo by Denys Nevozhai on UnsplashOffering a suite of solutionsZAN’s unveiling, which was announced in an official press release via Business Wire on Friday, heralds a comprehensive suite of technical solutions and services catering to both institutional players and individual developers in the Web3 ecosystem. At its core, ZAN offers a solution that enables Web3 companies to seamlessly issue and manage real-world assets (RWAs) while adhering to local regulatory frameworks.But ZAN’s ambitions don’t stop there. The brand aspires to revolutionize the Web3 landscape with a suite of technical offerings, including cutting-edge tools for electronic Know Your Customer (KYC) procedures, anti-money laundering (AML) measures, and Know Your Transaction (KYT) checks, all purpose-built with a view towards achieving the highest levels of compliance.Focus on dAppsMoreover, ZAN will also focus its attention on decentralized applications (dApps) through its provision of smart contract reviews and node services. These services, including remote procedure calls (RPCs), are poised to empower developers, offering them the essential tools they need to craft innovative dApps that can thrive within the Web3 ecosystem.ZAN’s journey has already seen notable partnerships, with HashKey DID, a decentralized identity data aggregator in the Web3 space, announcing its adoption of ZAN’s electronic KYC solution during the Hong Kong Web3 Festival in April.This move by Ant Group aligns with its reported intention to segregate its blockchain subsidiary from its core entity. In July it emerged that the company was restructuring with implications for its blockchain activities having been envisaged at the time. Given the size of the enterprise, the adoption of blockchain by Ant Group thus far has played a pivotal role in furthering blockchain use and implementation within Mainland China.IPO and further expansionThis separation is expected to be a pivotal step for the company in securing a financial holding license in China, further underscoring Ant Group’s interest in pursuing compliance and regulatory alignment.Ant Group had ambitious plans for a $30 billion initial public offering (IPO) in Hong Kong and Shanghai in 2020, with a staggering $226 billion valuation at the time. It’s evident that the financial giant remains resolute in its pursuit of expansion and diversification, although it has faced regulatory obstacles in its endeavors to do so.While the IPO was thwarted by the Chinese government, it is promising for the development of blockchain within China to see that the firm is once again making strategic moves in the blockchain sector, spearheaded in this instance through ZAN.

Singapore’s Central Bank Paves the Way for Digital Asset NetworksSingapore’s Monetary Authority (MAS) has taken a significant step towards the future of digital assets by proposing a comprehensive framework for the design of open and interoperable networks for tokenized digital assets.Photo by Pixabay on PexelsDetailed frameworkIn a report published on Monday, titled “Enabling Open & Interoperable Networks,” MAS presented a detailed framework aimed at understanding the design options necessary to facilitate the seamless trading of digital assets across diverse networks and liquidity pools. The framework is rooted in the core principles of financial market infrastructure and draws inspiration from cutting-edge projects that have been at the forefront of advancing these concepts.To ensure a robust and comprehensive approach, the report was jointly developed with subject matter experts from the Bank for International Settlements’ (BIS) Committee on Payments and Market Infrastructure (CPMI), with valuable contributions from prominent financial institutions including DBS Bank, JP Morgan, HSBC, SBI Digital Asset Holdings, Standard Chartered, and UOB.MAS defines digital asset networks as platforms that leverage distributed ledger technology (DLT) or blockchain to enable secure and efficient transfers of digital assets without the need for traditional intermediaries. These networks serve as the foundation for open and interoperable infrastructure, facilitating the issuance, transfer, and custody of digital assets. By promoting transparency, efficiency, and trust, the report suggests that they will play a pivotal role in shaping the digital asset ecosystem.Project GuardianThe report underscores the immense potential of digital asset networks in a future financial landscape, where digital assets and currencies can be seamlessly exchanged across different networks. MAS believes that these networks could revolutionize the way financial transactions occur, leading to increased efficiency and expanded possibilities. The framework also lays the groundwork for future exploration as part of the Project Guardian initiative, encompassing additional focused themes such as Trust Anchors and Institutional DeFi.MAS has also announced the expansion of Project Guardian to include a broader range of financial asset classes. The project now features an industry group comprising 11 leading financial institutions that will spearhead industry pilots in asset and wealth management, fixed income, and foreign exchange. Esteemed banks such as HSBC, Standard Chartered, DBS, and Citi are set to conduct multiple trials focusing on tokenization. For instance, Standard Chartered, in collaboration with Linklogis, is developing an initial token offering platform to issue asset-backed security tokens listed on the Singapore Exchange.Despite its cautious stance on cryptocurrency speculation, MAS recognizes the immense potential for value creation and efficiency gains within the digital asset ecosystem. Leong Sing Chiong, MAS’ Deputy Managing Director of Markets and Development, emphasized the authority’s optimism, stating: “We see significant potential for value creation and efficiency gains in the digital asset ecosystem.”This latest initiative by MAS comes on the heels of its recent proposal for standards governing the use of digital money, including central bank digital currencies (CBDCs) and stablecoins. Singapore’s central bank is paving the way for the future of digital assets and making a strong effort to assert its position as a global leader in digital asset innovation through the establishment of this framework alongside industry collaboration.