Gravity Reports Strong Q2 Revenues, Outlining Blockchain Game Roadmap

Singapore’s UniPass Plays Role in ERC-4337 Vulnerability FixSmart contract wallet provider UniPass and crypto infrastructure firm Fireblocks have successfully addressed a significant vulnerability in the Ethereum ecosystem.Photo by Nenad Novaković on UnsplashAccount abstraction vulnerabilityThis vulnerability, identified as the ERC-4337 account abstraction vulnerability, posed a critical security risk to hundreds of mainnet wallets. The joint effort between Fireblocks and UniPass was detailed in a blog post published to the Fireblocks website on Thursday.This vulnerability, if exploited, could have enabled a malicious actor to execute a complete takeover of the UniPass Wallet by manipulating Ethereum’s account abstraction process. The vulnerability represented a substantial threat to the security of smart contract wallets, as it could lead to unauthorized access and fund drainage.Improving user experienceAccount abstraction, as dealt with via ERC-4337, is a mechanism that introduces a novel way of processing transactions and interacting with smart contracts on the Ethereum blockchain. It allows for a more flexible and efficient handling of transactions, transcending the traditional distinction between externally owned accounts (EOAs) and contract accounts.EOAs are controlled by private keys and can initiate transactions, while contract accounts are governed by the code of a smart contract. When an EOA initiates a transaction with a contract account, it triggers the execution of the contract’s code. Account abstraction introduces the notion of abstracted accounts, which are not tied to a specific private key and can initiate transactions and interact with smart contracts, similar to EOAs.In the context of ERC-4337, an account executing an action relies on the EntryPoint contract to ensure that only signed transactions are executed. Typically, these accounts trust a single audited EntryPoint contract to validate user operations before executing commands. However, the vulnerability resided in the fact that a malicious or buggy EntryPoint contract could potentially skip the validation step and directly call the execution function, bypassing essential security measures.This vulnerability, identified by the two firms, had allowed attackers to seize control of UniPass wallets by replacing the trusted EntryPoint of the wallet. Once this takeover was completed, the attacker could access the wallet and drain its funds.It’s worth noting that the vulnerability posed a threat to several hundred users who had activated the ERC-4337 module in their wallets, making them susceptible to exploitation by any actor on the blockchain. Fortunately, the wallets affected by this vulnerability contained only small amounts of funds, and swift mitigation efforts were successful in preventing further harm.Company mergerEarlier this year, Singapore’s UniPass merged with Chinese wallet provider Keystone to form Account Labs, a company which has been incorporated in Singapore. At the time, Keystone founder Liu Lixin outlined that further developing account abstraction-derived products was the objective of the creation of Account Labs. He stated:“We are on the cusp of a Web3 Account Abstraction revolution. Together, we’ll drive rapid transformation, making the transition from Web2 to Web3 effortless for users. Our goal is to ensure everyone can securely and smoothly manage a decentralized account. We welcome partners to join us in advancing the Web3 account domain.”In furthering that objective, Account Labs announced on Thursday that it had raised $7.7 million in a funding round led by Amber Group, MixMarvel DAO Ventures, and Qiming Ventures.

DigiFT, a Singapore-based regulated exchange for real-world assets (RWAs), has brought its latest product offering to the digital asset market by introducing its U.S. Treasury bill depository receipt (DR) tokens. These tokens offer investors fractional ownership in U.S. Treasury bills, providing an avenue to engage with the traditionally secure U.S. debt market without requiring significant upfront capital, as detailed in a press release issued by the company on Monday.Photo by Karolina Grabowska on PexelsDemocratizing market accessThe conventional route to investing in U.S. Treasury bills typically demands substantial financial resources. DigiFT's DR tokens aim to democratize access to this market by enabling investors to purchase fractional shares of these bills. Henry Zhang, the founder and CEO of DigiFT, highlighted the innovative nature of the DR structure, noting its capacity to address challenges within the current market and empower investors with direct ownership of assets and returns. Zhang emphasized the company's intent to expand the scope of traditional financial assets in the Web3 space, leveraging the DR model to enhance investor protection and transparency. The DigiFT U.S. Treasury Tokens (DRUST) represent the inaugural offering in a series under the DR structure. These DR tokens, a type of security token, offer fractional ownership of an underlying asset. In the case of DigiFT, these tokens are specifically backed by U.S. Treasury bills, providing investors with exposure to the secure US debt market. Each DRUST token is directly backed by AA+ rated, highly liquid and short-term U.S. Treasury Bills, offering stability and tailor-made solutions for stablecoin issuers and Web3 product developers seeking regulatory-compliant treasury and cash management options. Pursuing regulatory complianceIn its latest announcement DigiFT has outlined its intention to pursue regulatory compliance, a facet intended to instill confidence and assurance among investors. Having been established in 2021 and previously operating within the Monetary Authority of Singapore's (MAS) FinTech Regulatory Sandbox, DigiFT obtained a Capital Markets Services (CMS) license and was acknowledged as a Recognised Market Operator (RMO) in December 2023. By adhering to regulations, DigiFT aims to simplify the investment process and broaden accessibility for investors. DigiFT highlights that institutional and accredited investors can access DRUST tokens from authorized self-custodial wallets using fiat currency or stablecoins, providing flexibility and convenience. Growing popularityThe growing popularity of tokenized funds, particularly those tied to U.S. treasuries, is evident in recent reports. Moody’s revealed a surge in the value of tokenized funds, driven by the increasing tokenization of U.S. treasuries. Both public and private blockchains are witnessing the inclusion of various assets, reflecting a broader trend toward asset tokenization. Tokenized funds offer numerous benefits, including enhanced liquidity, accessibility, reduced costs, fractionalization, decreased reliance on intermediaries, shortened settlement times, automated processes through smart contracts and improved transparency. Last June, Hong Kong-based cryptocurrency firm Finblox provided details of a tokenized version of U.S. Treasury Bills it has been working on. In November, the Bureau of the Treasury in the Philippines announced the issuance of one-year tokenized bonds to the value of $179 million. Binance Research has identified real-world asset tokenization as a key theme in crypto for 2024, noting its potential to improve transparency and efficiency by bringing off-chain assets onto blockchain networks.

HSBC Expands Offering to Include Crypto ETFs in Hong KongThe Hong Kong and Shanghai Banking Corporation (HSBC), the largest bank in Hong Kong, has reportedly introduced its first cryptocurrency services for local customers.According to journalist Colin Wu’s tweet on Monday, HSBC now allows its customers to buy and sell Bitcoin-based exchange-traded funds (ETFs).Photo by Cheung Yin on UnsplashOffering three crypto ETFsHSBC’s cryptocurrency services specifically focus on the cryptocurrency ETFs listed on the Stock Exchange of Hong Kong. Currently, the exchange offers three crypto ETFs, including CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF.The introduction of these services will provide Hong Kong users with more exposure to cryptocurrencies. As of March 2022, HSBC Hong Kong had approximately 1.7 million active mobile customers, with about 95% of all retail transactions processed online. Plenty of the customers that currently access TradFi financial services don’t touch crypto-native products. Bridging this gap and bringing crypto to a more traditional financial services client base is a major step towards mass market adoption of crypto.Educating the marketIn addition to the roll-out of cryptocurrency services, HSBC reportedly launched the Virtual Asset Investor Education Center. The initiative is designed to protect investors from cryptocurrency-related risks by requiring them to read and confirm educational materials and risk disclosures before investing.The Virtual Asset Investor Education Center is accessible through HSBC’s virtual asset-related products, such as the HSBC HK Easy Invest app, HSBC HK Mobile Banking app, and online banking.This is also a significant step forward. It’s entirely valid that while there are good actors in the crypto space, the sector has also had a lot of sharp practice that reflects badly on it. This alone may be reason enough for many conventional investors not to touch digital assets. Their trust in a platform like HSBC will allow them to include crypto within their portfolios.The second aspect to that reluctance is rooted in a misunderstanding of digital assets, the risks involved, and how risk can be minimized. HSBC has clearly identified this by taking the initiative and launching its Virtual Asset Investor Education Center.Crypto ETF growth potentialThis development follows reports in mid-June that the Hong Kong Monetary Authority (HKMA) had exerted pressure on major banks to accept crypto exchanges as clients. The central bank and regulator specifically questioned HSBC and Standard Chartered about their reluctance to onboard crypto exchanges as clients.HSBC’s move to offer cryptocurrency services in Hong Kong reflects the growing acceptance and recognition of cryptocurrencies in the financial industry. By providing access to crypto ETFs, HSBC aims to cater to the increasing demand for digital assets among its customers in the region.The crypto ETF products that are currently on offer in Hong Kong are very recent. As an example, Samsung’s Bitcoin futures ETF was launched in January. The product has already seen a lot of interest due to growing uncertainty relative to the traditional global financial system.A report produced by the Hong Kong stock exchange in April found that crypto ETFs have the potential to play a significant part in unlocking the next phase of digital asset expansion in Asia. Clearly, HSBC have taken notice with this move to further enable that potential.