OSL Prepares for Fund Launch Following License Approval

According to a report by Nikkei Asia, Kasikornbank (KBank), Thailand’s second-largest bank, has entered into a partnership with Bangkok-based firm Orbix Technology and Singapore’s StraitsX to roll out a cross-border payments solution based on the use of stablecoins. StraitsX provides payments infrastructure for digital assets in Southeast Asia. It also issues XSGD, XUSD and XIDR, stablecoins that are pegged to the Singapore dollar, the U.S. dollar and the Indonesian Rupiah. Orbix Technology contributes towards the collaboration by providing blockchain infrastructure, in this case, its Quarix blockchain, which was developed to support transactions in both foreign currencies and baht, convert real-world assets into digital tokens and enable real-world identity confirmation of the blockchain user.Photo by Mathew Schwartz on UnsplashProject Carina The groundwork for this latest collaboration was accomplished through a partnership between KBank and American investment bank JPMorgan’s JPM Coin (now known as Kinexys Digital Payments) in April. Known as Project Carina, the collaboration explored wholesale cross-border payments using Q-money, KBank’s digital Thai baht, which runs on Orbix Technology’s Quarix blockchain and forms part of Thailand’s regulatory sandbox. The objective of Project Carina was to effect the transfer of Thai baht, using Q-money, to a U.S. dollar-denominated bank account, via Kinexys Digital Payments. Using that process, a cross-border multi-currency transfer could be effected efficiently in real time. Spending Thai baht in Singapore In part, building upon that earlier project, this latest collaboration, which commenced at the end of November, brings StraitsX into the fold alongside KBank and Orbix. The service targets Thai tourists visiting Singapore, enabling them to spend their Thai baht-based Q-money at retail outlets in Singapore. Thai visitors account for 2.4% of arrivals to the city-state each year. Many retail stores in Singapore now enable the use of payment systems like PayNow, a real-time payment service offered by a group of Singaporean banks; GrabPay, a payments wallet that features as part of the Grab super-app; and Alipay+, another cross-border mobile payments system. StraitsX has collaborated with these payment systems, opening up access to this latest offering led by KBank. In November, StraitsX added access to the GrabPay and Alipay+ systems. Users of the Q-money app can scan the codes generated via these payment systems, enabling the user to pay in Thai baht for the item they are purchasing priced in Singaporean dollars. Effectively, the system enables and exchange and conversion of digital baht for the StraitsX XSGD Singaporean dollar stablecoin. The three companies showcased their blockchain-based cross-border payment innovation at the Singapore FinTech Festival last month. At the time, Orbix Technology Managing Director Yarnvith Raksri stated:”Quarix has played a significant role in driving the Q-money by KBank app and integrating it with the StraitsX system to allow seamless cross-border payments via blockchain, making them as convenient as domestic transactions.” KBank competitor Siam Commercial Bank (SCB), Thailand’s oldest bank, announced in October that it was partnering with fintech firm Lightnet to launch a stablecoin-based remittance service.

eToro, M2 secure licenses bolstering UAE crypto developmenteToro, the retail and social trading platform, has successfully secured a coveted license from the Abu Dhabi Global Market (ADGM) in the United Arab Emirates (UAE). Additionally, virtual asset firm M2 has become a fully regulated Multilateral Trading Facility (MTF) and custodian through the ADGM.Photo by Mitul Grover on UnsplasheToro global expansionIn eToro’s case, the Financial Services Permission (FSP) license empowers it to operate as a broker in securities, derivatives and crypto assets within the UAE. The firm announced its regulatory success on Monday, the first day of Abu Dhabi Finance Week.eToro’s foray into the UAE market is part of its broader global expansion plan. With an eye on the potential of the UAE’s investor base, eToro seeks to extend its business beyond just providing trading opportunities. The company is committed to fostering financial education and encouraging community engagement among its users in the region.The latest issuance of a full license by the ADGM is the culmination of an initial in-principle authorization obtained over a year ago, showcasing a deliberate approach to regulatory compliance. eToro Founder and CEO Yoni Assia commented on the development in a press release, stating:“The approval of our operating license by ADGM is a key milestone in our continued global expansion. Abu Dhabi is increasingly recognized as a growing fintech hub, and we are excited to become part of this flourishing ecosystem.”M2 primed to onboard retail and institutional clientsSimultaneously, cryptocurrency exchange M2 has also been recognized by the ADGM, earning the status of a fully regulated Multilateral Trading Facility and custodian. M2 is now permitted by this license to serve both retail and institutional clients in the UAE, offering services such as crypto custody, UAE dirham-based Bitcoin and Ethereum trading and on/off-ramp services for the dirham (AED).Stefan Kimmel, CEO of M2, considers the timing of this license as particularly advantageous, coinciding with a renewed positive sentiment among investors. M2’s range of services in the UAE market is designed for diverse client groups, addressing the needs of both retail and institutional investors.Official platform launchIn rolling out its service offering in Abu Dhabi, the trading and custodial services platform has partnered with Abu Dhabi Commercial Bank (ADCB). Commencing this week, both retail and institutional clients within the UAE can now register on the M2 platform.The firm will offer custody and trading of digital assets while also extending yield-bearing products of up to 10.5% on BTC and ETH.The strategic geographical location, business-friendly environment and forward-thinking regulatory approach make the UAE an attractive destination for international crypto players seeking operational licenses. Earlier this month, the ADGM’s registration authority introduced comprehensive regulations, particularly focusing on Web3 organizations. The regulatory framework has focused in particular on distributed ledger technology (DLT)-oriented foundations and decentralized autonomous organizations (DAOs).The successful acquisition of ADGM licenses by eToro and M2 marks a significant milestone for both entities. As these platforms introduce their innovative services to the region, the UAE is poised to play a central role in shaping the future of cryptocurrency.

China Unveils Blockchain-Powered Data ExchangeChinese government officials have announced the launch of a data exchange leveraging blockchain technology during the 2023 Hangzhou Summit in China on Wednesday.According to local media reports, the Hangzhou Data Exchange, introduced at the summit held in Hangzhou, aims to facilitate seamless buying and selling of Web3 data across enterprises. The event garnered participation from over 300 companies, including tech giants Alibaba Cloud and Huawei, marking a significant step towards embracing decentralized technology for data management.Photo by Xiaolin Zhang on UnsplashEnabling Web3 data tradingIt’s understood that the Hangzhou Data Exchange has been established with the aspiration of revolutionizing the trading landscape for enterprise information technology data by harnessing the capabilities of distributed ledger technology. Officials emphasize that the platform’s implementation will ensure that transactions conducted through the exchange remain unalterable and traceable.Chen Chun, the Director of the National Laboratory of Blockchain and Data Security, provided insights into the exchange’s advanced features, stating that it integrates research blockchain, privacy computing, and other cutting-edge technologies to establish a secure and confidential environment for sharing and utilizing data across departments and regions.Hangzhou’s digital economy sector has demonstrated significant growth, surpassing 500 billion Chinese yuan (equivalent to $69 billion) in 2022. This accounted for nearly 27% of the city’s total GDP. It suggests that the city is putting a strategic focus on technological development and innovation.Complex blockchain strategyChina’s stance on blockchain technology has been complex. While the Chinese authorities have been rigorous in regulating private blockchain enterprises, they have simultaneously championed government-led blockchain initiatives.President Xi Jinping, during the inauguration of the 2023 Shanghai Cooperation Organization Conference (SCO), highlighted the significance of central bank digital currencies (CBDC) in expanding the use of local currencies for settlements among SCO member countries. In a move to stimulate domestic spending, the Chinese government recently distributed over 100 million yuan worth of digital yuan CBDC to its residents.China’s promotion of its digital yuan has been unrivaled. Over the course of recent months, various initiatives have been launched to further the use of the CBDC. These initiatives have included paying state employees with the currency in Changshu, integration of the currency into the education system in Jiangsu province, and the installation of digital yuan ATMs in Hainan, among many other such projects.Likewise, when it comes to metaverse development, a series of initiatives have been established recently. Henan province established a metaverse fund in May to support metaverse-related projects. In the same month, a National Blockchain Center was established to develop talent within the sector. Around the same time frame, the city of Zhengzhou announced proposals geared towards supporting the growth and development of metaverse companies.The unveiling of the Hangzhou Data Exchange underscores China’s ongoing determination to harness blockchain’s potential, in this case relative to enhancing data trading and management within the Web3 ecosystem.