Fujitsu Launches Blockchain Collaboration With Asian Development Bank

MANTRA, a real-world asset (RWA) tokenization blockchain project headquartered in Hong Kong, has announced that it has been awarded a Virtual Asset Service Provider (VASP) license in the United Arab Emirates (UAE). In a community update published on its website, MANTRA co-founder and CEO John Patrick Mullin outlined that Dubai regulator, the Virtual Assets Regulatory Authority (VARA), had awarded the company the VASP license, meaning that the project is now entitled to act as a virtual asset exchange. Additionally, it is authorized to offer broker-dealer and investment management services. Photo by Aleksandar Pasaric on PexelsMullin claimed that the milestone is huge for both the company and the broader industry. He stated:”It’s a major step in our objective to bring the world’s financial ecosystem onchain by being the preferred ledger of record for real world assets. It’s a validation of our purpose,which is to provide developers and institutions with a purpose-built RWA Layer 1 Blockchain, that’s capable of adhering to real world regulatory requirements.” Scaling operations in the Middle EastThe project sees the license as a key step in broadening MANTRA’s global footprint and scaling its operations within the Middle East. Mullin outlined that both the UAE and broader Middle East & North Africa (MENA) have become “a progressive global hub and thriving ecosystem for Web3 and virtual assets owing to their regulatory initiatives and frameworks.” Mullin added that the license not only strengthens the project’s presence regionally, but it also “positions us internationally to deliver unique DeFi products that bridge the gap between decentralized finance and traditional finance.”  Shorooq Partners, a Dubai-based venture capital firm and investor in the project, commented on the announcement on X. It said that the license would mean that MANTRA would set a new standard for compliant and secure DeFi solutions. It emphasized the importance of regulatory compliance in enabling institutional DeFi adoption on a global scale. The venture capital firm was the lead investor in an $11 million funding round completed by MANTRA in March 2024. At the time, Shane Shin, founding partner at Shorooq, said that he liked MANTRA’s strategic focus on key markets like Hong Kong and Dubai, adding that the investment implicated a future where digital and traditional assets converge seamlessly. The project intends to launch DeFi-based products that have been formulated to meet investors' needs by combining the benefits of DeFi with the structure and security provided by conventional finance. Token's price performanceThe OM token is a utility and governance token within the MANTRA decentralized autonomous organization (DAO). It was the best-performing layer-1 token as of Feb. 17. At the time of writing, it’s trading at $7.59, according to CoinMarketCap data. The project also announced a $1 billion deal with UAE-based DAMAC Group, a property development company, last month.

Hong Kong Web3 Companies Invest Millions in VASP LicensesWeb3 firms in Hong Kong are making significant financial investments to obtain Virtual Asset Service Provider (VASP) licenses.According to a report by Foresight News on Tuesday, the cost of these licenses is ranging between 20 million and 200 million Hong Kong dollars ($2.55 million and $25.5 million).Industry sources explained to the publication that the high costs are due to the lack of existing infrastructure in traditional financial institutions, requiring significant investments in various aspects such as products and teams. Even experienced cryptocurrency institutions find the cost of obtaining a license to be substantial.Photo by Daniam Chou on UnsplashEarly licenseesAnalysts at Foresight highlighted that several Hong Kong subsidiaries of exchanges, including OKX, BitgetX, HashKey Pro, OSL, and Gate.io, have already commenced operations. OKX, in particular, has witnessed impressive growth in Hong Kong, with 8,800 registered users and a cumulative trading volume of $150 million as of June 27.To regulate the cryptocurrency exchange industry, Hong Kong introduced new VASP licensing requirements on June 1.These requirements mandate firms to disclose user statistics and company financials to the Securities and Futures Commission (SFC) of Hong Kong for regulatory approval. Exchanges that fail to comply with the requirements will be compelled to halt operations in the special administrative region (SAR) by mid-next year.Virtual asset ratingsOn the same day, the Hong Kong Virtual Asset Consortium unveiled its virtual asset index, which encompasses major cryptocurrencies such as Bitcoin, as well as altcoins and privacy tokens. The consortium aims to offer ratings services and indexes to facilitate retail crypto trading in the SAR. Notably, it has received support from prominent players in the industry, including Huobi, KuCoin, Bitget, and others.The introduction of VASP licenses and the subsequent investments made by Web3 companies demonstrate the evolving regulatory landscape in Hong Kong. With the stringent licensing requirements, the industry aims to enhance transparency and accountability, ensuring the protection of investors and fostering a more secure environment for cryptocurrency trading.The involvement of established exchanges and the formation of the Hong Kong Virtual Asset Consortium further underscore the growing interest and support for cryptocurrencies in the region. These initiatives are designed to provide retail investors with reliable information.In that way, they enable them to make informed decisions while participating in the digital assets space. The consortium’s collaboration with industry leaders reflects a collective effort to promote the growth and adoption of cryptocurrencies in Hong Kong.Last week’s news of banking stalwart HSBC offering Hong Kong-based crypto exchange-traded funds (ETFs) to its banking customers has also delivered a shot in the arm to the development of crypto in the Chinese autonomous territory.As the regulatory framework continues to evolve and mature, it is expected that Hong Kong will attract more Web3 companies seeking to operate in a regulated and compliant environment.The investment in VASP licenses signals a commitment to long-term growth in establishing a base in Hong Kong. Ongoing developments in Hong Kong over the course of the past six months point to the recognition of the potential benefits that cryptocurrencies and blockchain technology can bring to the financial landscape of Hong Kong and level of the level of intent locally to progress the technology.

Busan City Houses Two Foreign Financial Firms on the Road to Becoming Blockchain, Fintech HubThe city of Busan said Monday that it has chosen two financial companies, UIB Korea and Lina One, as the new occupants of Decacorn-Space — an office space on the 63rd floor of the Busan International Finance Center (BIFC) — in an effort to position the southern port as the nation’s blockchain and fintech hub.Busan has been running an open call for foreign financial institutions to move into the recently renovated space since June. After a rigorous two-step evaluation process, UIB Korea and Lina One were selected, the city said.This comes as part of Busan’s efforts to further develop the BIFC and become a major financial powerhouse in Korea.“We have been relocating public financial institutions, fostering financial experts, and exploring new growth drivers such as fintech, blockchain, and digital innovation,” the city’s mayor Park Heong-joon explained.Photo by Minku Kang on UnsplashAbout UIB Korea and Lina OneUIB Korea, or UIB Insurance Brokers, is the Korean branch of UK-based UIB Group — a global insurance broker that offers risk management advisory services. In particular, the firm is set to work with other domestic companies such as DB Insurance and Meritz Fire & Marine Insurance to establish a consortium for providing insurance products and consulting services.Meanwhile, Lina One is the Korean branch of Chubb Group, the world’s largest publicly traded property and casualty insurance company. One of the firm’s major goals is to promote the insurance information technology market in Busan.Notably, both companies aim to leverage their digital capabilities, experience, and competitiveness to achieve similar goals, which include digitizing insurance for various partners, ranging from maritime and industrial companies to regional banks, fintech companies, and individuals. In turn, their efforts are expected to expand Busan’s network with the larger global financial community and present the city as an ideal spot for international conferences.On the road to becoming a financial hubDespite considerable challenges such as the withdrawal of foreign financial institutions from Korea and the impact of COVID-19 on international travel, the city has continuously made efforts in collaboration with the Busan Finance Center to attract international financial institutions through events like investor relations meetings and local networking activities.To support the successful landing of these companies in Busan, the city will also offer one-stop services such as business model development support and residential settlement consultations.Once settled, UIB Korea and Lina One are expected to generate significant synergy with partner firms such as local financial holding company BNK Financial Group during the third phase of the development of the BIFC whose objective is to house innovative financial workspace by 2025.“It is crucial for us to attract more competent domestic and foreign financial institutions that will have a great impact on the city’s financial economy,” Mayor Park emphasized.