Lackluster debut for crypto ETFs in Hong Kong

South Korean blockchain firm Ozys announced today that it has entered into a strategic partnership with Creder, a company dedicated to integrating traditional assets into the blockchain realm, to tokenize physical assets like precious metals into real-world assets (RWAs), according to Korean news site Digital Today on Thursday (KST). "Gold is one of the major RWA assets as the market value of assets linked with physical goods is increasing in the global market. We will take a transparent approach in expanding the RWA token ecosystem and showcase our business performance through our cooperation," said Lim Dae-hoon, CEO of Creder.Photo by Jingming Pan on UnsplashDriving innovationAs a member of the Klaytn ecosystem, internet juggernaut Kakao’s blockchain, Ozys operates platforms like Allbit.com, a layer 2 decentralized exchange (DEX), and a cross-chain token transfer platform dubbed Orbit Bridge. The firm utilizes blockchain-based technologies like smart contracts and Inter-Blockchain Communication (IBC) to develop and run its platforms. Meanwhile, Creder is currently working on The Mining Club, a project that mints solid gold into NFTs for safe storage and transfer. The gold NFTs are available for purchase on the NFT marketplace OpenSea. It is also developing Gold Station, a platform that allows for the digitized purchase, storage and investment of gold through the Gold Pegged Coin (GPC). GPC is a physical gold-based RWA issued on the Klaytn network. Expanding the scope of Web3The two companies will work together to onboard GPC to KLAYswap – Klaytn’s on-chain swap protocol – which will be issued via smart contract on Jan. 3. The two companies also plan to tokenize other precious metals like silver, copper and palladium. By combining physical assets and blockchain technology, the companies aim to expand the Web3 ecosystem and lead next-generation markets. "The tokenization of gold, which is considered a safe asset, is expected to diversify the Web3 ecosystem," said Choi Jin-han, CEO of Ozys. "We plan to explore various collaborations with Creder, starting with the onboarding of the gold-based token GPC on KLAYswap."

At Hong Kong FinTech Week 2025, Securities and Futures Commission (SFC) Chief Executive Julia Leung outlined plans to link Hong Kong’s crypto market with global liquidity. She announced that licensed virtual asset trading platforms (VATPs) will be allowed to share a global order book with their overseas counterparts. According to a statement published on the SFC’s website, this step will enable local investors to access international markets more efficiently, improving price discovery and competitiveness. Leung added that more initiatives are on the way to connect local brokers directly to global liquidity networks. This latest connectivity push comes as Hong Kong considers new guardrails for crypto holding companies such as digital asset treasuries (DATs), which hold cryptocurrencies as strategic assets.Photo by Manson Yim on UnsplashSFC points to regulatory gaps for digital asset treasuriesThe state-owned newspaper Wen Wei Po reported that Securities and Futures Commission (SFC) Chairman Kelvin Wong noted the current lack of regulations governing listed companies operating as DATs and the limited understanding of such entities. Chairman Wong added that firms seeking to list in Hong Kong as DATs would need to persuade both the SFC and the Hong Kong Stock Exchange (HKEX) of their suitability. For companies already listed, he urged investors to remain alert to the potential risks involved. This regulatory concern over crypto investing companies emerges as Hong Kong simultaneously presses ahead with its ambition to become a leading hub for digital finance. City advances on e-HKD and tokenizationIn line with that ambition, the Hong Kong Monetary Authority (HKMA) unveiled its e-HKD Pilot Programme Phase 2 Report in an Oct. 28 press release. The report outlines the potential benefits of its central bank digital currency (CBDC), the e-HKD, and tokenized deposits, noting that public feedback on both concepts has been broadly positive. The program's second phase involved 11 pilot projects led by various consortiums. These projects explored retail use cases, emphasizing the e-HKD’s commercial viability and scalability. Key focus areas included the settlement of tokenized assets, programmability, and offline payments. Participants in the program included Aptos Labs, the Boston Consulting Group (BCG), Hang Seng Bank, Standard Chartered, and BlackRock. Based on the report's findings, the HKMA stated it would initially prioritize the e-HKD’s application in wholesale or large-value payments, leveraging its credit risk–free nature as a central bank liability. Concurrently, the authority plans to continue studying potential retail and corporate applications, aiming to lay the groundwork for broader implementation by the first half of 2026. Survey shows strong investor appetiteAmong the program’s participants, Aptos Labs, Boston Consulting Group (BCG), and Hang Seng Bank reported accelerating interest in tokenized funds. A survey they conducted found that 61% of retail investors in Hong Kong and mainland China planned to double their exposure. Held between May and June 2025 among more than 500 retail fund investors, the survey tracked sentiment and appetite for tokenized products. Mainland participants showed particularly strong demand for cross-border access. The findings also detailed differing motivations among Hong Kong investors. Active traders expect to lift tokenized fund allocations from 10% to 26%, attracted by round-the-clock trading and greater flexibility. Wealth transfer planners indicated an expected expansion from 5% to 16%, highlighting programmable fund structures for tailored trusts and transparent oversight. Long-term investors aim to raise exposure from 8% to 25%, citing instant liquidity and the ability to use tokenized assets as loan collateral. Mainland investors projected their allocations would climb from 11% to 24%, reportedly viewing tokenized funds as a practical route around capital restrictions. The survey noted that programmable features could support dynamic allocation across Hong Kong products, the onshore use of profits, and smoother cross-border transfers. BCG commented that the survey outcomes align with Hong Kong's measured advance in crypto oversight, pointing to the city’s stablecoin regime that came into force in August. The Hong Kong Monetary Authority (HKMA) has signaled, however, that licensing under that regime will not begin until early next year. The ongoing development of the e-HKD and the prospective regulation of digital-asset treasuries point to Hong Kong’s broader strategy of integrating digital finance into its mainstream economy. Together, these initiatives underscore a cautious yet steady effort to position the city as a global center for digital finance. 

Kronos Research experiences significant cybersecurity breachKronos Research, a Taipei-based crypto trading, market making and venture capital firm, has found itself in the crosshairs of a cyber attack.Photo by FLY:D on Unsplash$25.6 million lossHackers gained unauthorized access to the company’s API keys, resulting in losses exceeding $25.6 million spread across various cryptocurrencies, prompting a concern within the crypto community.The breach was detailed by the company in a social media post on the X platform on Saturday. That post read:“In the interest of transparency Around 4 hours ago, we experienced unauthorized access of some of our API keys. We paused all trading while we conduct an investigation. Potential losses are not a significant portion of our equity and we aim to resume trading as soon as possible.”On-chain sleuthingInvestigations by crypto community members have followed, led by blockchain researcher ZachXBT. ZachXBT is a well-known anonymous persona in the crypto space, having earned a reputation for uncovering hacks, scams and unethical practices within the crypto sector.In this instance, ZachXBT uncovered a trail of transactions originating from a Kronos Research account. The meticulous execution of the cyber attack was evident in six transactions involving 2,780 ETH, 2,540 ETH (repeated twice), 2,636 ETH, 4.93 ETH and 2,507.52 ETH, all directed to addresses controlled by the hacker.Kronos Research has followed up with a tweet thread on X, acknowledging the gravity of the situation and confirming losses of approximately $25.65 million in crypto assets. Despite the alarming figures, the company sought to reassure stakeholders by emphasizing that the losses represent a relatively small fraction of its total equity. In a commendable display of accountability, Kronos Research pledged to absorb all losses internally, shielding its partners from the financial ramifications of the breach.The Taiwanese firm posted:“Our team has been working round the clock to minimize the impact and resume trading operations, following a hacking incident that involved unauthorized access to our API Keys.”Implications for Woo XThe operational repercussions were swift and impactful, with Kronos Research opting for a temporary suspension of all trading operations. This decision rippled through to Woo X, the affiliated Taipei-based exchange and liquidity provider created by Kronos, which temporarily blocked specific asset combinations due to liquidity concerns. Importantly, Woo X assured users of the security of their funds and later announced the resumption of spot and perpetual trading.Looking forward, Kronos Research outlined its intention to resume trading operations in the coming days, contingent on favorable conditions.The cyber attack on Kronos Research occurred against the backdrop of heightened cybersecurity concerns within the crypto space. According to blockchain security firm Certik, approximately $173 million was lost to crypto attacks in November alone. The Kronos Research breach follows on the heels of Poloniex’s $131 million hack, highlighting the persistent challenges faced by crypto platforms in securing user assets.