Ripple supports Japanese Web3 initiative & crypto research within APAC

3AC Founders Vow to Donate Future EarningsThe co-founders of the Singapore-headquartered bankrupt crypto hedge fund Three Arrows Capital (3AC) have publicly committed to donating their “future earnings” to creditors who suffered losses during the fund’s dramatic collapse.Kyle Davies and Su Zhu made this groundbreaking announcement during a candid Twitter Spaces session hosted by Mario Nafwal, aiming to establish a “shadow recovery process” parallel to the ongoing liquidation proceedings.Photo by Josh Appel on UnsplashBelieving in karmaDavies explained that their intended donations would be separate from the formal recovery process, designed to supplement any reimbursements that creditors might receive through the liquidation proceedings. While acknowledging that some early creditors have already been made whole, he emphasized the founders’ unwavering belief in the concept of “karma.”They see their act of giving back as a way to balance the scales and provide an avenue for creditors to potentially recover their losses.Creditor skepticismHowever, these noble intentions expressed by Davies and Zhu have been met with skepticism from the crypto community and the very creditors they seek to assist. Teneo, the liquidator overseeing the 3AC liquidation, responded to Davies’ comments by expressing disappointment in the founders’ lack of cooperation during the ongoing process. They stressed that the founders should prioritize engaging in the court-ordered activities rather than making promises about future earnings from a new venture.Acknowledging concerns about optics, Davies addressed questions surrounding the launch of their new crypto exchange, Open Exchange (OPNX), while their previous company undergoes liquidation. He stressed the inherent connection between OPNX and the creditors, suggesting that the success of their new entrepreneurial endeavor would ultimately benefit those affected by the collapse of Three Arrows Capital.OPNX success requiredOPNX, the newly launched Dubai-based trading platform, is specifically designed to facilitate the trading of bankruptcy claims. Since its announcement in February, the platform has garnered significant attention, boasting an impressive user base of 20 million individuals holding a collective $20 billion in claims. It is worth noting that the collapse of Three Arrows Capital resulted in the loss of $2.5 billion in customer deposits, making the success of OPNX crucial for creditors seeking redress.Davies also revealed that OPNX currently records approximately $50 million in daily trading volume, showcasing promising early traction for the platform. However, the exact mechanics of the “shadow recovery process” were left unspecified.While OPNX currently only facilitates the trading of claims from lender Celsius, the platform has ambitious plans to include claims from other high-profile bankruptcies in the near future. The list of potential additions encompasses notable entities such as FTX, Genesis, BlockFi, Voyager, Hodlnaut, Mt. Gox, Vauld, Zipmex, and even Three Arrows Capital itself.When taken at face value, the founders’ pledge to donate future earnings to creditors takes on the appearance of a significant and commendable gesture. However, doubts persist within the crypto community due to the founders’ prior actions and the ongoing liquidation process. Only time will reveal the true impact of this “shadow recovery process” and whether it will genuinely alleviate the losses suffered by creditors in the wake of Three Arrows Capital’s collapse.

In the immediate aftermath of the approval of spot bitcoin exchange-traded funds (ETFs) in the United States earlier this week, a Hong Kong legislator has spoken out to encourage a proactive response within the Chinese autonomous territory, while asset managers appear to be responding accordingly.Photo by Simon Zhu on UnsplashCompetitive responseLawmaker Johnny Ng has called on the local government to swiftly embrace the recent ETF approval in the United States. In a post on X, Ng emphasized the need for Hong Kong to proactively lead the way in the cryptocurrency space, fostering innovation to secure a global position amidst intense competition. Ng highlighted the Securities and Futures Commission's (SFC) previous expression of readiness to accept applications for spot bitcoin ETFs. He urged Hong Kong to capitalize on the rapidly evolving virtual asset sector, implementing policies and products that position the city as a global hub for virtual assets. "This presents an opportunity to solidify Hong Kong’s position as a global hub for virtual assets," Ng stated, emphasizing the importance of seizing this moment in the market's development. In December, Hong Kong's regulatory bodies, the SFC and the Hong Kong Monetary Authority (HKMA), reviewed their existing policies, releasing circulars that outlined the requirements for spot crypto ETFs. Fund managers explore ETFsHashKey, a licensed crypto exchange in Hong Kong, confirmed its potential participation in spot crypto ETFs through engaging in crypto transactions associated with ETFs and providing crypto custody services. The company, which obtained a license from the SFC to offer retail crypto trading services in August, positions itself to play a pivotal role in the emerging market. Livio Weng, COO of the Hong Kong-based crypto exchange, revealed that approximately ten fund managers, backed by Chinese capital and others from Asia and Europe, are exploring the launch of spot crypto ETFs in Hong Kong. Weng, in an interview with Chinese financial news media Caixin, disclosed that seven or eight of these fund managers have already been in contact with the SFC, forming teams to design investment products. Highlighting the importance of education in the crypto space, Ng called on the Hong Kong government to prioritize public education. He stressed the need to increase awareness of virtual assets among the public while simultaneously reducing opportunities for illicit activities involving digital assets. Substantial impactIn an interview earlier this week, Yat Siu, the co-founder of Hong Kong-based crypto venture capital and game software firm Animoca Brands, expressed the view that the spot bitcoin ETF approval in the U.S. would have a more substantial impact on the overall development of crypto in Asia. As Hong Kong prepares to pave the way for spot crypto ETFs, the SFC and the HKMA have already reviewed existing policies, outlining the requirements for such investment products. The December circular from the SFC emphasized that transactions involving spot crypto ETFs should occur through licensed crypto platforms or authorized financial institutions, ensuring regulatory compliance in the growing crypto market. 

OPNX Enables Margin Trading via oUSDCrypto futures and bankruptcy claims trading exchange OPNX has unveiled a credit currency called “oUSD” for margin trading.The company announced the new currency via a statement to Cointelegraph by OPNX Co-Founder Mark Lamb on Wednesday. The initial phase of oUSD requires users to deposit crypto assets into the exchange to acquire the currency. In the subsequent phase, OPNX plans to enable users to obtain oUSD by depositing crypto into on-chain contracts, allowing for potential “bankruptcy remoteness,” according to Lamb.Photo by Krišjānis Kazaks on UnsplashSolving three problemsThe currency’s litepaper identifies three problems that oUSD aims to solve. Firstly, lenders are hesitant to trust platforms to hold cash loans backed by crypto collateral. Secondly, exchanges and lending platforms are wary of lending cash to margin traders due to the multiple bankruptcies witnessed during the bear market of 2022. Lastly, crypto derivatives traders seek “portfolio margin” to borrow and trade based on their crypto holdings rather than stablecoin holdings.To address these concerns, oUSD is designed as a “credit currency.” It can be obtained at a 1-to-1 ratio with Tether (USDT) or used to measure profit and loss when users utilize Bitcoin or other cryptocurrencies as collateral. Users with negative oUSD balances are subject to an interest rate determined by holders of the platform’s native token, OX. Those with a positive balance can redeem oUSD for USDT.Future plansLamb discussed future plans with Cointelegraph, explaining that users will eventually be able to acquire oUSD by staking cryptocurrencies within smart contracts outside the platform. This mechanism aims to provide bankruptcy remoteness, safeguarding users from potential exchange insolvency.One of the co-founders of OPNX, Kyle Davies, along with Su Zhu, also co-founded the failed hedge fund Three Arrows Capital (3AC), leading to controversy surrounding the exchange. OPNX’s CEO, Leslie Lamb, admonished investors for allegedly misleading the public by disassociating themselves from the exchange. Responding to criticism, Mark Lamb argued that the mistakes made by Davies and Zhu have contributed to improving OPNX as an exchange.Lamb stated: “I think Kyle and Su kind of portrayed the zeitgeist of the last crypto bull market well, and they lost the majority of their net worth, but they are building back, and that’s what I am doing as well, and that’s what everyone should do… just build back.”Appearing on a Twitter Spaces recently, the founders of the bankrupt Singapore-headquartered 3AC said that they are committed to donating future earnings from OPNX to the creditors of the collapsed crypto hedge fund. Goodwill has been largely lacking for the duo following the 3AC collapse yet undeterred, they are putting all their energies behind their new venture, OPNX.OPNX’s launch of oUSD as a credit currency offers potential solutions to the challenges faced by lenders, exchanges, and margin traders in the crypto space. By introducing oUSD, OPNX aims to provide a safer trading environment, provable solvency, and custody on-chain, giving users protection for their assets and promoting trust in the exchange. Trust might be in short supply for the start-up’s founders although there’s no doubt that they have acquired a lot more experience in the wake of the 3AC collapse.