Komainu acquires Singaporean digital asset custodian

Malaysia Looking to Wean Itself Off Dollar DependencyAccording to Prime Minister Anwar Ibrahim, China is willing to engage in discussions with Malaysia regarding the creation of an Asian Monetary Fund. This proposal, which has been circulating for decades, aims to decrease the dependence on the US dollar.©Pexels/Sergei StarostinAsian Monetary FundAnwar highlighted the necessity to minimize reliance on the dollar and the International Monetary Fund and proposed the establishment of this fund at the Boao forum in Hainan last week. He stressed that the fund would aid in diversifying the financial landscape of Asia and improving its resilience against economic challenges.Following a state visit to China last week, Anwar stated that “there is no reason for Malaysia to continue depending on the dollar.” The Prime Minister told the Malaysian parliament on Tuesday that China’s President Xi Jingping was receptive to the idea of an Asian Monetary Fund and welcomed further discussions on such a proposal.Anwar Ibrahim, serving as both the Finance Minister and Prime Minister of Malaysia, stated that the country’s central bank is already taking measures to allow for negotiations between Malaysia and China using their respective currencies, the ringgit and renminbi.The robustness of the US dollar poses a significant challenge for Malaysia and other Asian countries, particularly as Malaysia is a net importer of food. In September 2022, the Bloomberg dollar index reached an all-time high, leading to a decline in the value of the ringgit and other Southeast Asian currencies to levels not seen in decades.As a result, Anwar Ibrahim’s proposal for a shift towards bilateral trade negotiations with China using the ringgit and renminbi holds the potential to alleviate some of the region’s dependence on the dollar and reduce the impact of its fluctuations.International shift away from dollarThis development comes as other officials in the region, particularly Singapore, have been discussing strategies to manage the effects of a dominant US dollar that has weakened local currencies and been used as an instrument of economic power by the United States.There has been a raft of deals struck in recent weeks all pointing towards an international shift away from the US dollar as the global reserve currency. Russia has agreed with China to trade in renminbi. A major trade deal was struck recently between China and Brazil that will see the two countries trade in reals and renminbi. Major oil producer Saudi Arabia has made similar soundings and signed similar deals with Beijing.Bitcoin as a reserve currencyAll of this recent upheaval has brought further consideration of bitcoin acting as a reserve currency back into view. It’s expected that even if there is a shift away from the US dollar, the renminbi won’t be capable of acting as a single dominant global reserve currency. Taking to Twitter on Wednesday, Bloomberg Intelligence Crypto Market Analyst Jamie Coutts suggested that bitcoin’s performance in Q1, 2023 marks “a significant milestone in its ascendancy as a potential global reserve asset.”Coutts believes that it marks the first occasion that the leading cryptocurrency has acted as a safe haven asset during a liquidity crisis. Bitcoin remains at an early stage of development. Nobody expects that it could serve as the global reserve currency at this point. However, it is not unreasonable to anticipate it increasingly growing into a role as a reserve currency used for international trade and settlement. Especially so, as issues bubble over relative to banking and a desire to escape the clutches of US dollar domination.

Wemade joins hands with Dubai Chambers to expand Web3 and gaming endeavors in Middle EastSouth Korean blockchain gaming publisher Wemade has partnered with the Dubai Chambers to support each other’s objectives for making advancements in the Web3 and gaming sphere.Photo by Kent Tupas on UnsplashTheir commitments were exchanged when Wemade CEO Henry Chang met with Mohammad Ali Rashed Lootah, the President and CEO of the Dubai Chambers, during his trip to the United Arab Emirates this week for this year’s Abu Dhabi Finance Week and the Fortune Global Forum, according to industry sources on Tuesday (KST).The Dubai Chambers of the UAE is a non-profit public agency that plays a central role in creating an environment for businesses in Dubai to thrive, thus bolstering the business landscape. It is divided into three sectors — commerce, international and digital economy.A strategic allianceDuring the meeting, the Dubai Chambers pledged to support Wemade’s business expansion in the Middle East region by helping the company establish networks with local organizations and companies. It also vowed to facilitate active exchange between Wemade and the Dubai Chambers’ overseas offices in 27 countries. In turn, Wemade stated that it would strengthen its local business capabilities to contribute to the growth of Dubai’s gaming and Web3 industries.“Dubai is one of the most dynamic regions leading the next-generation gaming industry, and the role of the Dubai Chambers is crucial. Wemade will actively support Dubai’s gaming industry initiatives with the experience and technical expertise that we have accumulated over the years,” Chang said. Lootah also expressed his anticipation for the partnership, reaffirming Dubai’s commitment to fostering a tech-savvy ecosystem.Earlier this month, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai, announced a new vision to grow Dubai into one of the top ten cities for gaming in the world by creating 30,000 new jobs and increasing GDP by $1 billion by 2033.Strengthening tiesChang and Lootah’s meeting is the latest development in the budding business relationship between Wemade and the UAE. Previously, a delegation from the Dubai Chambers visited South Korea in September, during which it visited Wemade’s headquarters. Wemade also opened an office in Abu Dhabi earlier this year.

Bitfinex Forges Strategic Partnership with Zodia CustodyCryptocurrency exchange Bitfinex has formed a strategic partnership with digital assets custodian Zodia Custody to fortify the security of its institutional clients’ assets.The deal struck with Zodia Custody, a subsidiary of the UK multinational banking titan Standard Chartered, aligns with a growing trend within the digital assets sector, one that emphasizes separating asset custody from trading activities. Such a division will result in heightened security measures while better meeting regulatory compliance.Photo by Ketut Subiyanto on PexelsSecuring digital assetsThis collaboration provides an opportunity for institutional clients who maintain accounts with both Bitfinex and Zodia Custody. They can now seamlessly replicate their custodial assets on Bitfinex’s cutting-edge trading platform, all while basking in the security offered by Zodia’s off-exchange settlement solution, aptly named Interchange.With this innovation, the need for actual asset transfers becomes obsolete as the settlement process unfolds periodically on the blockchain. This approach not only ensures efficiency but also provides greater security when interacting with the platform.Industry trendBitfinex’s move towards segregating trading and custodial functions aligns with best practices in the crypto industry but also signifies a wider trend observed among cryptocurrency exchanges as they increasingly adopt a more conventional approach akin to traditional financial institutions.Paolo Ardoino, the Chief Technology Officer (CTO) of Bitfinex, shared the exchange’s perspective, stating:“We are committed to shaping the future of digital market infrastructure and enabling institutional customers to thrive in this space. Working with Zodia Custody is a significant part of that strategy, and together we can look to enable even more institutions to enter or further participate in digital assets.”This partnership serves as a testament to Bitfinex’s continuous efforts to collaborate with reputable custodians, building upon past successful alliances with firms like Koine in 2020 and Digivault in 2022.The significance of segregating asset custody from trading operations has taken on greater importance, primarily in the aftermath of the collapse of FTX, where management gambled with customer’s assets.Zodia’s market expansionZodia Custody, with the backing of Standard Chartered Bank, has recently expanded its footprint into Singapore, offering digital asset custody services to financial institutions in the burgeoning Asian market.Not content with that, in May it launched its crypto custodian service in Dubai. The following month the fledgling firm announced a partnership with blockchain infrastructure firm Blockdaemon relative to crypto staking for institutional clients. There’s been no let up in the firm’s roll-out of services as earlier this month it commenced a yield offering on stablecoins in partnership with Singapore-based DeFi platform OpenEden.Bitfinex’s history includes one of the most infamous hacks in the cryptocurrency sphere, with the pilfering of 120,000 BTC, now valued at over $3 billion. Nevertheless, the exchange has undergone a transformative journey and presently boasts an extensive array of cryptocurrencies and trading pairs.As the regulatory landscape continues to evolve, the practice of separating custody from trading is poised to become a standard procedure, further enhancing the legitimacy and security of the cryptocurrency market.