India’s CBDC reaches 1 million daily transactions milestone

Sony Bank, a Japanese neobank headquartered in Tokyo, has applied to the U.S. Office of the Comptroller of the Currency (OCC) to establish a new trust bank, Connectia Trust, as part of a broader expansion into digital assets. According to Sony Bank’s application, if approved, Connectia Trust would issue U.S. dollar–pegged stablecoins and manage the corresponding reserves. The entity would also offer non-fiduciary custody of digital assets and provide fiduciary asset-management services for certain affiliates.Photo by P. L. on UnsplashSony among 11 crypto applicants to the OCCSony Bank’s filing is among 11 crypto-related applications before the OCC, alongside efforts by Coinbase, Nubank, Paxos, BitGo, Ripple, and others. To date, only two banks have advanced through the agency’s charter approval process. In 2021, the OCC conditionally approved the conversion of Anchorage Trust Company into Anchorage Digital Bank, granting it a national trust bank charter. More recently, last week, Erebor Bank, backed by PayPal co-founder Peter Thiel, received preliminary conditional approval for its de novo charter. The initiative reflects Japan’s growing openness to cryptocurrencies, underscored by the government’s recent regulatory approval of the country’s first yen-denominated stablecoin. Fintech firm JPYC Inc. plans to launch “JPYC” this fall, pegged at 1 yen per token and designed for person-to-person transfers and retail payments, with plans for point-of-sale integration. The issuer targets up to 10 trillion yen ($66.7 billion) in circulation within three years. There are no limits on holdings or wallet transfers, while redemptions are capped at 1 million yen ($6,700) per user per day. Sony Bank has been building its Web3 capabilities this year. Its board approved a new subsidiary for blockchain initiatives in May, later renamed BlockBloom in August. Now operational, BlockBloom aims to connect fans and artists and bridge digital and physical experiences, as well as fiat and digital assets. Its ultimate parent, Sony Group, launched a blockchain mainnet called Soneium in January through Sony Block Solutions Labs, S.BLOX, and SNFT. Built as an Ethereum layer-2 network powered by Optimism’s Superchain technology, Soneium recently announced support for meco.fun, a SocialFi platform that enables creators to earn through memes, content, and NFTs. MUFG’s blockchain initiatives at home and abroadJapan’s top traditional banks are also expanding their involvement in digital assets, with a growing focus on stablecoins. An Oct. 17 Nikkei report, cited by CoinDesk, said Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group, and Mizuho Financial Group aim to develop a unified system to issue and transfer stablecoins among corporate clients. Their first rollout will focus on yen-pegged tokens, followed by a potential dollar-based offering. According to an earlier report from Reuters, MUFG and nine other major international banks, including Bank of America, Deutsche Bank, Goldman Sachs, and UBS, are collaborating on stablecoins tied to G7 currencies. MUFG has additionally rolled out a blockchain-based business with Mitsubishi UFJ Morgan Stanley Securities (MUMSS), which is offering bond security tokens and operating ASTOMO, a trading venue for retail investors that has debuted with tokens backed by real estate. The platform lets users invest from 100,000 yen (about $667) on their phones. In summer, MUFG’s trust unit, Mitsubishi UFJ Trust and Banking, acquired a high-rise building in Osaka for more than 100 billion yen ($667 million), with plans to issue digital securities tied to the asset. The tokenization strategy would offer fractional ownership to retail investors long excluded from major real estate opportunities. Taken together, Sony Bank’s OCC application and Japan’s accelerating tokenization efforts signal a race among major financial and technology players to build compliant, scalable infrastructure for digital assets—both at home and abroad. 

Thailand’s KBank Furthers Crypto Business Through Satang AcquisitionKasikornbank (KBank), Thailand’s second largest bank, is expanding its involvement in the digital assets sector through the acquisition of a majority stake in the local crypto exchange Satang.Photo by Lisheng Chang on UnsplashTradFi embracing cryptoThe acquisition, involving a purchase of 97% of Satang’s shares, is a significant move in the context of an ongoing trend of traditional financial institutions embracing digital assets. The deal was officially announced on Monday, as disclosed on KBank’s official website.KBank executed the acquisition through its newly established subsidiary, Unita Capital, whose registered capital is valued at 3.7 billion Thai baht (approximately $103 million). Unita Capital specializes in investments within the digital asset sector. This move underlines the bank’s commitment to stay ahead in the dynamic world of digital finance.Subsidiary formationIn light of the acquisition, Satang Corporation is set to undergo a name change and will soon be known as Orbix Trade Company Limited. Unita Capital has established a number of other subsidiary companies as a consequence of the buy-out.KBank’s cryptocurrency venture will be structured into three distinct divisions. Orbix Custodian has been formed, focusing on secure digital asset storage and management. There is a growing demand for reliable digital asset custody services. KBank will use Orbix Custodian as a vehicle to capitalize on that growth opportunity.Orbix Invest has been established to act as the venture arm of the business relative to the digital assets space. It will focus on fund management in meeting the needs of clients looking for exposure to the digital assets sector. Lastly, Orbix Technology has been established to concentrate on blockchain technology development.Satang, a prominent player in the Thai cryptocurrency scene, operates a cryptocurrency exchange alongside a range of digital asset services. Notably, Poramin Insom, the founder of Satang, is recognized for his role in launching Firo (formerly Zcoin), a privacy-centric cryptocurrency. Insom confirmed the acquisition via a Facebook post on Monday, acknowledging the evolution of Satang as it transitions under KBank’s ownership.Insom stated: “I’ve been at Satang since 2017 until now, six years have passed. Currently, Satang on the trading board has already exited according to the news. And there should be an official announcement soon.” He also highlighted Satang’s diversified ventures, including Satang Technology, a blockchain service platform, and Satang Space, focusing on space-related endeavors.This strategic move by KBank follows its recent launch of a $100 million fund, introduced in September, targeting investments in Web3, fintech, and artificial intelligence (AI). In 2022, KBank launched Bigfin, a digital asset investment analysis platform. Bigfin has since been integrated with the Binance platform.Last year the bank backed Thai digital asset and blockchain startup Forward, a project that is working on developing a decentralized derivative platform.KBank is recognized as the second largest lender in Thailand based on assets, trailing behind Bangkok Bank. Thai NVDR Company Limited is the largest shareholder of KBank, as per data from the Stock Exchange of Thailand (SET), with the SET itself owning 99.9% of NVDR’s shares.

Crypto Oasis Founder Thinks UAE Set Up For Crypto SuccessAs the dust settles on 2023's Dubai Fintech Summit, which took place last week, one takeaway offered by the Co-Founder of blockchain ecosystem firm Crypto Oasis is that the United Arab Emirates (UAE) has set itself up for success where crypto business is concerned.In speaking with crypto publication CoinTelegraph on the fringes of the Dubai Fintech Summit, Crypto Oasis Co-Founder and Managing Partner Saqr Ereiqat suggested that the regulatory infrastructure that the UAE has put in place provides an ideal foundation upon which crypto companies can develop and prosper.Photo by Mo Ismail on PexelsRegulatory infrastructureEreiqat pointed to some key fundamentals that crypto entrepreneurs and start-up founders should look at when deciding on the location that will best meet their needs and help to optimize their route to market and ultimate success. This includes the regulatory infrastructure.The UAE authorities and regulators at a national level, together with their colleagues within the regulatory agencies in the Emirates of Dubai and Abu Dhabi, have been doing some heavy lifting in this regard over recent months.They’ve all been working on establishing a workable regulatory framework, and as part of that, a licensing process. In the case of Dubai, its Virtual Assets Regulatory Authority (VARA) has started to issue preliminary or Minimum Viable Product (MVP) license approvals that enable crypto startups to get started, while providing them with a pathway towards obtaining Full Market Product (FMP) licensing at a later stage.Talent poolThe other key requirements that Ereiqat set out were digital infrastructure alongside an ability to attract and provide a pool of talent relative to the crypto assets space. In respect of these key considerations, Ereiqat believes that the UAE hits the target in each case.“The UAE’s regulatory framework is more streamlined and business-friendly compared to the complex and fragmented regulatory environment in the US,” he told the crypto media firm.To enhance these fundamentals, Ereiqat also alluded to a depth of capital that could potentially find its way into UAE-based crypto businesses, easing these start-ups’ efforts in executing on funding rounds as they look to achieve growth.Ereiqat maintains that the interest in the region is already evident, citing a data-point that suggests there are 1,800 Web3-centric businesses already operating in the region, with more than 8,000 people working for those start-up businesses. Speaking to that reality further, he said:“The Dubai FinTech Summit was a significant event that brought together stakeholders from the fintech industry […] The presence of crypto and Web3 leaders and projects at the event is an important indicator of the growing interest and adoption of these technologies in the region.”This enthusiasm and belief in the existence of the right Web3 business environment in the UAE was echoed at that event by both Coinbase Founder and CEO Brian Armstrong and Ripple Founder and CEO Brad Garlinghouse. Both industry figures featured as keynote speakers at the event. Armstrong alluded to the potential of Coinbase establishing a base in Abu Dhabi while Garlinghouse announced the opening of a Ripple office in Dubai.