Bakkt targets business expansion in Asia

Ripple Expands in Asia-Pacific with Full License to Operate in SingaporeEnterprise blockchain firm Ripple announced on Wednesday (UTC) that it has secured a full license to operate in Singapore, where it has established its Asia-Pacific headquarters since 2017.Photo by Sergio Sala on UnsplashFrom outline to full approval in 4 monthsThis development marks another step in Ripple’s strategic expansion within the Asia-Pacific region, known for its rapidly growing cryptocurrency market. Ripple’s journey to obtaining this full license began less than four months ago when the Monetary Authority of Singapore (MAS) granted it an initial in-principle approval in June. With the newly acquired full license, Ripple is now authorized to offer regulated cryptocurrency payment services in Singapore, a key financial hub in the region.Brad Garlinghouse, the CEO of Ripple, expressed his enthusiasm for the company’s continued growth in Singapore, stating:“We have hired exceptional talent and local leadership, doubling headcount over the past year and plan to continue growing our presence in a progressive jurisdiction like Singapore.”Global expansion strategyThe company also highlighted the fact that over 90% of Ripple’s business occurs outside the United States, making the Asia-Pacific region, and Singapore in particular, a vital part of its global expansion strategy.Monica Long, President of Ripple, explained in a recent interview with CNBC that the Singapore office has seen substantial growth in the past year due to the booming business opportunities in the Asia-Pacific region. This expansion aligns with Singapore’s leadership in crypto regulation in the region. The introduction of the Payment Services Act, which has been in effect since January 2020, has played a large part in that, regulating payment services and crypto services to the public.Singapore’s regulatory framework also includes requirements for crypto service providers to safeguard customer assets in statutory trusts by the end of 2023 and restrictions on facilitating lending or staking of retail customers’ assets. These measures ensure consumer protection and responsible growth in the crypto industry.Praising SingaporeGarlinghouse commended Singapore’s regulatory approach, stating, “Under MAS’ leadership, Singapore has developed into one of the leading fintech and digital asset hubs, striking the balance between innovation, consumer protection and responsible growth.” Ripple’s experience in Singapore differs entirely from the ongoing legal battle it has found itself in in the United States with the Securities and Exchange Commission (SEC).Both Ripple and Coinbase have found themselves embroiled in lawsuits with the regulator in the US. In Ripple’s case, the firm and its founders have been accused of unlawfully selling their native cryptocurrency XRP without registering it with the SEC. However, a landmark ruling in July determined that XRP, as a token, may not necessarily be classified as a security.Long spoke to the contrasting experiences the firm has encountered between the United States and Singapore. Long stated:”Being in Singapore a couple weeks ago felt like night and day compared to the US in terms of open dialogue with regulators, and thus being able to build innovative *and* compliant products.”Ripple, along with Coinbase and several other crypto firms, has criticized the lack of regulatory clarity in the US and has even considered relocating operations due to the SEC’s stringent regulatory stance. Notably, Coinbase also recently announced its successful acquisition of a major payment institution license in Singapore, following its in-principle approval obtained about a year ago.

OKX Ventures, the investment wing of the Seychelles-based cryptocurrency exchange OKX, has disclosed a strategic A-round investment in Polyhedra Network. Details of the investment have been outlined through a press release published via PRNewswire on Tuesday. Specializing in the creation of Web3 infrastructure, Polyhedra Network places a premium on interoperability, scalability and privacy, leveraging advanced zero-knowledge (ZK) proof technology.Photo by Precondo CA on UnsplashInteroperability with privacyA ZK proof provides the ability for one party to cryptographically prove to another party that it possesses a certain piece of information without having to reveal the actual underlying information to the other party. Central to Polyhedra Network's product offering is its zkBridge protocol, a system facilitating trustless and efficient cross-chain infrastructure for both layer-1 and layer-2 interoperability. The protocol empowers the receiving chain to verify specific state transitions on the sending chain. This approach ensures robust security without external assumptions, effectively reducing the costs associated with on-chain verification. Polyhedra Network made an initial impact in 2023 with the launch of the "zkBridge Mainnet Alpha." That product enabled interoperability over 20 layer-1 and layer-2 blockchains, including well-known networks such as Bitcoin, Ethereum, BNB Chain and Arbitrum. Distributed proof systemThe innovative strides of Polyhedra Network, which was founded in the United States by James Zhang, Tiancheng Xie and Nikhil Shah, continued in 2023 with the introduction of deVirgo, a novel distributed proof system expediting proof generation. The deVirgo protocol also incorporates recursive proofs which trim on-chain proof verification costs associated with zkBridge. Last month, Polyhedra Network unveiled its Bitcoin messaging protocol with zkBridge, ushering trustless interoperability into the Bitcoin ecosystem through the use of ZK-proof technology. Asian backingBy championing entrepreneurs contributing to the blockchain industry's advancement, OKX Ventures is helping to build innovative companies, bringing global resources and historical experience to the forefront of blockchain projects. It is one of many Asia-centric venture firms to do so. Polyhedra has secured backing from Hong Kong’s Animoca Brands and HashKey Group, Singapore’s UOB Venture Management, NGC Ventures, Signum Capital and Foresight Ventures, alongside KuCoin Ventures. In an initial funding round in February 2023, the UC Berkeley team attracted $10 million in funding. By April, a pre-Series A round had raised a further $15 million. Dora Yue, the founder of OKX Ventures, expressed their honor in participating in the investment in Polyhedra Network's interoperability infrastructure. Yue lauded the creativity demonstrated by Polyhedra Network's team in developing advanced ZK-proof mechanisms, emphasizing the balance achieved between ZK interoperability and scalability. OKX Ventures, with an initial capital commitment of $100 million, is committed to supporting Polyhedra Network's vision of seamlessly connecting the Web2 and Web3 worlds, aiming to attract a more extensive user base to the industry. As the investment arm of the global crypto exchange platform, it dedicates itself to exploring top-tier blockchain projects on a global scale. Its focus is on fostering cutting-edge blockchain technology innovation, aspiring to support the healthy development of the global blockchain space and investing in long-term structural value.

SEBA Bank Receives Conditional Approval for Crypto Services in Hong KongSwiss-based crypto-centric SEBA Bank has secured conditional approval from Hong Kong’s Securities and Futures Commission (SFC) to offer crypto services within the autonomous Chinese territory.While there are stipulations yet to be met before the license is fully granted, the development marks a significant progression when it comes to SEBA’s global business ambitions.Photo by Ruslan Bardash on UnsplashExpanding in AsiaThe “approval-in-principle” comes as part of SEBA’s strategic efforts to expand its foothold in the Asian crypto market. Once the conditions are fulfilled and the license is formalized, SEBA will be well positioned to provide Hong Kong with a range of comprehensive crypto services.This includes securities dealing encompassing crypto-related structured products, as well as consultation and management of both digital assets and traditional securities. SEBA sees potential in the offering of derivative products as it has identified demand for derivatives and structured products within the Asian crypto market.This step forward for SEBA follows earlier reports that the bank was actively growing its workforce in pursuit of digital asset licenses for both Hong Kong and Singapore. The company has grown its headcount from seven to 20 across these locations, as it looks to establish a strong presence in the Asian market.The move aligns with Hong Kong’s evolving stance on cryptocurrency and digital finance. Introduced in June, the virtual asset service provider (VASP) license was intended to regulate virtual asset services within Hong Kong’s legal framework. Currently, only two crypto exchanges have secured these licenses.Cryptocurrency exchange HashKey, alongside digital assets platform OSL, became one of the first licensed crypto exchanges in Hong Kong recently. Since then, it has expanded its offerings to retail users, allowing them to purchase Bitcoin and Ethereum using US dollars. Leading up to that licensing approval, it had also launched a wealth management service for high-net-worth individuals and institutional investors. The majority of publicly accessible VASPs remain unregulated, according to a recent statement by the SFC.Regulatory balanceThe Hong Kong Monetary Authority (HKMA) has also shown interest in fostering relationships between established financial institutions and crypto exchanges, further signaling the region’s growing engagement with the crypto space. It’s also pointing towards getting the balance right between enabling digital asset innovation and having sufficient regulation in place to protect investors. In May, its CEO, Eddie Yue, stated that Hong Kong wouldn’t be a place for light touch regulation.The licensing process in Hong Kong hasn’t been without its difficulties. The interest in obtaining crypto trading licenses caught the SFC flat footed as it found itself understaffed to work through the licensing applications that arrived at its door. The backlog prompted commentary from SEBA’s CEO for the Asia Pacific (APAC) region, Amy Yu, back in May, with Yu highlighting that the backlog had increased significantly over the course of nine months.While SEBA has broken into the market in the APAC region via its efforts in Hong Kong, it’s understood that the bank has plans to develop its business in Singapore further over the course of the coming months.