Japanese Survey Finds One-Third Familiar with Web3

UBS extends crypto ETF access to clients in Hong KongMultinational investment bank UBS Group AG has followed suit with competitors like HSBC, enabling its wealthy clients in Hong Kong to engage in the trading of select crypto-linked exchange-traded funds (ETFs).Photo by Pierre Borthiry — Peiobty on UnsplashRegulatory approval to offer three ETFsThis move, reported by Bloomberg on Thursday, aligns with Hong Kong’s efforts to establish itself as a prominent digital asset hub. Citing an undisclosed source, Bloomberg outlined that three crypto ETFs, namely the Samsung Bitcoin Futures Active, CSOP Bitcoin Futures and CSOP Ether Futures, have received approval from the Securities and Futures Commission (SFC) and will be available on UBS’s Hong Kong platform starting this Friday.The inclusion of these ETFs allows UBS clients to diversify their investment portfolios, offering exposure to the dynamic crypto market. Educational materials will also be accessible to clients, aiding in their understanding of associated risks. While UBS declined to comment on this development, it marks a strategic move by the Swiss bank to tap into the growing demand for crypto-related investment products.In June, Hong Kong’s largest bank, HSBC, moved to expand its offering to include crypto ETFs. It has made available the very same crypto ETFs as UBS is about to offer.Hong Kong’s crypto credentialsHong Kong introduced a comprehensive digital asset regulatory regime on June 1, aiming to safeguard investors while fostering the Chinese autonomous territory’s emergence as a digital financial center. The SFC permits retail investors to trade major tokens on licensed exchanges under these regulations.Despite these regulatory advancements, Hong Kong faced setbacks, notably with the recent issues surrounding the unlicensed JPEX exchange, which led to increased scrutiny. The establishment of a joint task force between the SFC and the police aims to monitor and prevent suspicious activities within the crypto industry.Globally, financial institutions remain cautious about compliance risks in the crypto sector. However, signs of increased engagement are emerging. DBS, Singapore’s largest bank, has expressed its intention to seek a license to offer crypto services to Hong Kong customers. ZA Bank, the largest virtual bank in Hong Kong, plans to provide token-to-fiat currency conversions over licensed platforms. Furthermore, SEBA Bank, backed by the Julius Baer Group, has obtained a license for its unit to offer crypto services in Hong Kong.Unlocking ETF potentialA report published by the Hong Kong Stock Exchange in April claimed that crypto ETFs possess the potential to unlock the next phase of digital asset expansion in Asia. Earlier this week, it emerged that regulators were open to the notion of allowing retail access to spot crypto ETFs in Hong Kong, provided that the necessary regulatory approvals and checks were in place.The inclusion of the CSOP Bitcoin Futures and CSOP Ether Futures funds on UBS’s platform highlights the gradual recovery of the crypto sector from the market rout experienced in 2022. Despite the previous market challenges and collapses, the prospect of the U.S. allowing its first spot Bitcoin ETFs has contributed to a resurgence in the largest token’s price this year. The move by UBS aligns with the broader trend of financial institutions cautiously embracing the crypto economy, indicating a shifting attitude toward these digital assets in the financial mainstream.

Netmarble’s MARBLEX Secures Whitelist Approval for MBX Token in JapanSouth Korean gaming company Netmarble made an announcement today that its blockchain subsidiary, MARBLEX, has obtained whitelist approval for its governance token MBX in Japan. This marks a significant milestone for the project, opening up new opportunities for MBX’s utilization within the Japanese market.Photo by Eliobed Suarez on UnsplashCrypto listing in JapanIn Japan, crypto assets must undergo a rigorous review conducted by the Japanese Financial Services Agency (FSA) before being listed on crypto exchanges. Boasting its stability and reliability, MBX has become the first token from a Korean blockchain gaming project to be added to the Japanese whitelist of crypto assets.As part of its expansion plan, MARBLEX is in discussions with Zaif to arrange the listing of the MBX token on the Japanese crypto exchange in October.Utility expansion planMoon Jun-ki, Business Division Director of MARBLEX, expressed confidence in MBX’s competitiveness as a verified token. He highlighted MARBLEX’s strategy to introduce a token burn policy and expand the token’s utility, all aimed at establishing a sustainable and transparent ecosystem.These comments from Moon point to MARBLEX’s overhaul plan for MBX tokenomics. As a key step in this initiative, the blockchain firm burned 67% of its total 1 billion MBX distribution on July 19.

Sumitomo Mitsui Financial Group (SMFG), a leading Japanese multinational financial services corporation and holding company, has outlined plans to launch a stablecoin.Photo by JJ Ying on UnsplashIn a press release published on its website on April 2, the company outlined details of a memorandum of understanding (MOU) it has signed with a view towards initiating discussions on the commercial use of stablecoins. Among the parties that have signed the MOU is Sumitomo Mitsui Banking Corporation (SMBC), Japan’s second-largest bank and a core unit of SMFG’s overall business. Other parties include local IT firm TIS, Inc., digital asset infrastructure firm Fireblocks and Ava Labs, the creator and developer behind the Avalanche layer-1 blockchain. Developing a framework for stablecoin issuanceThe agreement will see these stakeholders collaborate in an effort “to develop a framework for stablecoin issuance and circulation, including exploring key technical, regulatory, and market infrastructure requirements both in Japan and further afield.” The initiative will seek to examine a number of stablecoin use cases that SMFG believes can best leverage the characteristics of stablecoins. These include “a settlement method for tokenized financial and real-world assets (RWAs), such as government and corporate bonds, as well as real estate.” The company acknowledged that the tokenization of RWAs has been growing rapidly, with stablecoins emerging as an important settlement tool. It also acknowledged their growing use in the areas of international remittances, corporate payments and small-value, high-frequency transactions. SMBC sees potential in the use of stablecoins to reduce reliance on intermediaries where cross-border payments are concerned, improving upon traditional finance which relies on use of the SWIFT financial messaging network. It has identified savings that can be made in terms of the time taken to effect cross-border transactions and associated costs. According to a report published by Japanese financial news outlet Nikkei on April 1, Ava Labs is expected to use its know-how in order to construct the foundational basis for the stablecoin.  Meanwhile, Fireblocks will be responsible for the development of a management system for any stablecoin token that is subsequently issued as a consequence of the initiative. It will also get involved with the development of system security in relation to the project. The bank will work with TIS to support the developmental phase of the project. While the initiative is currently at the planning stage, trials are scheduled to begin during the second half of this year.If all goes to plan and work proceeds as per the schedule that has been established, a stablecoin could potentially be issued as a consequence sometime in 2026. It’s not the first time that SMBC has delved into consideration of stablecoins. Last September, it joined with Mitsubishi UFJ Financial Group (MUFG) and Mizuho to launch Project Pax, a cross-border stablecoin transfer platform. That initiative relies upon Progmat, a distributed ledger technology (DLT) platform founded by MUFG for the purpose of tokenization and the issuance of stablecoins. Japanese legislators have been working towards adding an amendment to the Payment Services Act, with some changes proposed relative to stablecoins. The changes would permit greater diversity in terms of stablecoin reserves.