Bakkt targets business expansion in Asia

Financial regulators in Hong Kong are moving towards the presentation of stablecoin legislation following the completion of a consultation process. In February of this year, that consultation process, which received 108 submissions from professional bodies and industry stakeholders, was completed. It was run jointly by The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA), culminating in the publication of the results of the process.Photo by Pat Whelen on UnsplashLegislative proposal publishedOff the back of that prior body of work, the regulators have now published a legislative proposal, incorporating responses to issues that were brought to light via the consultation process. The regulators concluded that going forward, stablecoin regulation should be considered primarily in terms of those stablecoin assets which operate on a ledger which runs on a decentralized basis. Additionally, no individual or unilateral entity should have the ability to tamper with or control those assets or the network upon which they exist. On this basis, the regulators intend to submit a bill relative to fiat-referenced stablecoins for consideration to the Legislative Council at a later stage in 2024. Before submitting any legislative proposal, the regulators plan to once again consult with stakeholders prior to finalizing any such proposal. As part of what they have set out thus far, regulators are looking to include a requirement for any stablecoin issuer to obtain a license in Hong Kong.  Reserve asset requirementsThey remain open to the idea that reserve assets backing an issued stablecoin could be held in an overseas jurisdiction. However, if the issuer is an overseas entity, it will be required to establish a local corporate entity in Hong Kong, with relevant management personal based within the Chinese autonomous territory. In light of feedback received during the consultation process, the regulator is looking at reducing the attestation frequency that each stablecoin issuer will be required to provide via an independent auditor in order to verify that the stablecoins issued are backed by the requisite amount of liquid assets.  Such reserve assets must be segregated from the working capital of the stablecoin issuer’s business, with the HKMA expressing a preference for a trust-like structure following input via the consultation process. Furthermore, reserve assets must be deemed to be both high quality and highly liquid, which would include cash, bank deposits and government issued securities where counterparty risk is minimized. On the basis that the Hong Kong dollar is pegged to the U.S. dollar, the regulator is content to allow issuers to use USD-denominated reserve assets if they prefer to do so. The legislative proposal also stipulates the need for issuers to have a minimum share capital of HK$25 million or 1% of the value of stablecoin in circulation.  The HKMA foresees crypto exchanges, securities firms and regulated banks having the ability to offer stablecoins to customers, so such offerings won’t be confined to dedicated stablecoin issuers.Back in March the HKMA introduced a stablecoin sandbox with a view towards learning what works best from a regulatory standpoint. It’s understood that a list of participants will be announced in the near future. Participating entities will be able to issue stablecoins in Hong Kong within that controlled sandbox environment, prior to full scale implementation once stablecoin regulation has been fully legislated for.

Incheon Unveils Ambitious Four-Year Plan to Become a Leading Blockchain HubIncheon Metropolitan City, home to the largest international airport in South Korea, revealed on October 16 that it has successfully formulated a four-year comprehensive plan that aims to position Incheon as a blockchain hub and spearhead the digital economy sector. This ambitious strategy is slated from 2024 to 2027. The formulation of this plan was entrusted by Incheon to a third-party entity back in April.Shaping Incheon as a blockchain hub has been one of Mayor Yoo Jeong-bok’s policy objectives. Under his leadership, Incheon is dedicated to fostering an industrial ecosystem that supports the digital economy, with a special emphasis on blockchain technology — an essential component in the Web3 era.Photo by Shubham Dhage on UnsplashStrategic roadmapIncheon has crafted an action plan for the upcoming four years, with the primary aim of transforming itself into a city that promotes public involvement, fosters sustainable development, encourages cutting-edge innovation, provides a favorable environment for businesses, and advances technology.Mainnet launchAs the first step, Incheon will establish a blockchain mainnet in 2024. This infrastructure will serve as the foundation for the development of associated services and will offer citizens firsthand experiences of convenience.Through the construction of blockchain infrastructure, encompassing mainnets and testnets, Incheon strives to simplify the process for companies in need of blockchain technology. Even those without their own technological resources or substantial capital will find it more accessible to develop services utilizing blockchain within the city.Blockchain-based public servicesThe city has also discovered various blockchain-based public services for Incheon residents. One of them is constructing digital wallets that leverage resident identification cards through decentralized identifiers (DIDs). These digital wallets are designed to offer a streamlined, one-stop solution, allowing citizens to conveniently access a wide array of public services. For instance, Incheon residents will have the capability to gain entry to public facilities, access various discounts, make online reservations, and accumulate loyalty points, all through the straightforward authentication provided by these digital wallets.Furthermore, the city is looking to implement blockchain technology in the following public services. The “eco platform” will serve as an integrated system aimed at incentivizing citizens who actively engage in environment-friendly activities. The “volunteer platform” will simplify volunteer work processes, including certification and recognition. The “safety management platform” will ensure transparent and safe operations on construction sites.Incheon also plans to create a cluster for the blockchain industry in the Incheon Free Economic Zone (IFEZ). The plan is to attract a blockchain technology innovation support center in the Songdo area of Incheon to create synergies with local businesses.Support for blockchain startupsThe city seeks to create a support system for blockchain startups, assisting them from their inception to growth and global expansion. Additionally, efforts will be made to build a global cooperation network and attract foreign investment funds to further bolster the blockchain ecosystem.The four-year plan also delves into more specific objectives. Among them are the establishment of a system to nurture blockchain talent, creating a conducive environment for refining governance and policies, and initiating a branding campaign to bolster Incheon’s competitive edge in the global arena.Son Hye-young, who leads the Data Industry Division in Incheon City, emphasized that the four-year plan represents Incheon’s ambitious vision to establish itself as a blockchain technology hub. She also expressed the city’s commitment to actively support the growth of businesses in this sector and to create tangible and beneficial services.The detailed implementation strategy for the master plan will be disclosed at the Global Blockchain Incheon Conference (GBIC) 2023, a two-day event set to commence on October 30 at the Songdo Convensia.

Crypto infrastructure, mining and investment firm Phoenix Group, a company based in the United Arab Emirates (UAE) and publicly listed on the Abu Dhabi Securities Exchange (ADX), has established a $150 million crypto treasury.Photo by Jievani Weerasinghe on UnsplashFirst ADX-listed firm to establish crypto treasuryThe development emerged as the company released its results for Q2 2025. Phoenix Group explained in a press release that its activities in Q2 led to it becoming the first ADX-listed company to establish a strategic crypto treasury with Bitcoin (BTC) and Solana (SOL) holdings valued at $150 million. Phoenix asserted that unlike its competitors which are burdened by debt, it has a healthy balance sheet, with debt of just $16 million. This has enabled it to pursue the establishment of a strategic crypto reserve. The company is also expanding into AI-related activities, with plans to repurpose part of its U.S. infrastructure. That adjustment will allow the firm to establish a multi-use compute facility, enabling it to build out its AI vertical. Phoenix Group Co-Founder and CEO Munaf Ali said that Phoenix is working towards building out one gigawatt of hybrid infrastructure by 2027. Ali also commented on the pursuit of a crypto treasury, stating:“Holding Bitcoin and other strategic digital assets isn’t just about exposure. It’s about alignment. We believe in the long-term value these networks represent, and our treasury strategy reflects that belief.”DWF Ventures, the ventures arm of crypto market maker DWF Labs that relocated its headquarters from Singapore to Abu Dhabi earlier this year, released a report in June revealing that publicly-listed companies that have adopted a crypto treasury strategy have amassed holdings of $76 billion in crypto. Phoenix Group has disclosed that to date, it has accumulated 514 Bitcoin and over 630,000 Solana with a view towards holding these digital assets in the long term. Earlier this year, American digital asset investment firm Sarson Funds outlined that the UAE is playing a significant role in advancing Bitcoin adoption at a corporate level in the context of the ongoing trend towards the pursuit of a Bitcoin corporate treasury strategy. Miners accumulatingPhoenix Group isn’t the only company involved in crypto mining to establish a crypto corporate treasury recently. In June, American miner BitMine Immersion Technologies disclosed that it was raising $18 million through a public share offering to buy Bitcoin. Since then, it has been accumulating Ether (ETH). As of July 24, the firm held over 300,000 ETH, with plans to raise $4.5 billion to fuel further ETH purchases. MARA Holdings, a publicly-listed American Bitcoin miner, has also confirmed that its treasury now extends beyond Bitcoin that it mined itself. Phoenix Group confirmed that it mined 336 BTC in Q2, with 689 BTC mined over the course of H1 2025. Founded in 2017, the firm debuted on the ADX in December 2023 with its stock immediately surging by 50% from its initial public offering (IPO) launch price. The firm’s share price has also performed well in 2025, surging 72% from April to June.