Busan Blockchain Special Zone Gears Up with Expert-Led Operations Committee

Singapore’s largest bank in terms of assets under management (AUM), DBS Bank, has introduced “DBS Token Services,” an offering it describes as “a new suite of banking services that integrate tokenisation and smart contract-enabled capabilities with its award-winning banking services.” The bank announced details of the new service offering via a press release published on its behalf by PR Newswire on Oct. 18. The product caters towards the needs of DBS Bank’s institutional clients, with the objective of unlocking operational efficiencies and transaction banking capabilities.  The product suite includes DBS Treasury Tokens, conditional payments and programmable rewards, with the latter allowing institutions to program and manage the use of funds. The products run on the bank’s permissioned blockchain, while being Ethereum virtual machine (EVM) compatible.Photo by Shubham Dhage on UnsplashRunning on permissioned blockchainThe bank pointed out the implications of operating the service over a permissioned blockchain network, stating:”Using a permissioned blockchain provides DBS full control over these services, enabling the bank to harness the benefits of blockchain technology while adhering to compliance standards.” Permissioned networks utilize distributed ledger technology (DLT) but they don’t truly embrace decentralization. They’ve proven popular with traditional financial services companies who want to still maintain ultimate control over the network. Conditional paymentsThe bank’s new product suite integrates tokenization and smart contract capabilities with existing conventional services. Those smart contracting capabilities make programmability an accessible feature for institutions relative to fund governance.  With that, conditional payments are likely to lead to an improvement in payment workflows for institutions. The bank believes that this aspect of its latest offering builds upon a recent pilot project that DBS engaged in alongside Enterprise Singapore and the Singapore Fintech Association (SFA). That project involved the utilization of blockchain technology, and in particular smart contracting, for the purpose of distributing government grants. DBS Token Services has been integrated with the bank’s core payment engine and various other banking sector payment infrastructures. Treasury Tokens enable institutional clients to settle multi-currency intra-group transactions across multiple markets instantaneously, 24/7. Back in August DBS partnered with digital payments provider Ant International, an affiliate of Chinese conglomerate Alibaba Group, on a pilot project involving blockchain-based treasury and liquidity management using Treasury Tokens. DBS Bank’s Group Head of Global Transaction Services, Lim Soon Chong, claimed that "by leveraging tokenisation and smart contract capabilities, DBS Token Services enables companies and public sector entities to optimise liquidity management, streamline operational workflows, strengthen business resilience, and unlock new opportunities for end-customer or end-user engagement.” Chong added that the new service is a leap forward in transaction banking, demonstrating “how established financial institutions can leverage blockchain technology to deliver new ground-breaking features and experiences.” Embracing blockchainDBS is an outlier in TradFi relative to blockchain and digital assets insofar as it has delved much deeper into the emerging technology by comparison with the majority of its peers. Last month, the company announced that it plans to introduce over-the-counter (OTC) crypto options trading and structured notes for institutional clients during Q4 2024. Earlier in the year, it participated in a proof of concept for FX payment versus payment (PvP) settlement on the blockchain of Singapore-based unified ledger market infrastructure firm Partior.

Korean Firms Join Forces to Expand the Security Token MarketSouth Korean tech firm AIITONE announced today that it signed a memorandum of understanding (MOU) with real estate developer Korea Asset Development to expand security token businesses, according to a report by news agency Newsis.Photo by Shubham Dhage on UnsplashVentures into fintechAIITONE is renowned for its expertise in applying extended reality (XR) technology to smart defense and metaverse projects. In their latest strategic move, they have hired a blockchain tech group to venture into fintech sectors, with a specific focus on security tokens.Real estate expertiseKorea Asset Development, a real estate developer engaged in multiple projects nationwide, is currently involved in the development of upscale housing in Seoul and Busan, high-end residences in Songdo, as well as luxury resorts in Chungcheong and Gangwon Provinces.Through their collaborative endeavors, AIITONE and Korea Asset Development seek to capitalize on their respective technological expertise and knowledge. They plan to share their know-how and establish a comprehensive cooperation framework, specifically targeting content development associated with security tokens. Furthermore, both parties have committed to consistently exploring new areas of cooperation.Security token opportunitiesIn particular, the two companies have identified real estate due to its relatively easier valuation compared to other assets. The market for real estate security tokens in Korea is projected to reach 34 trillion KRW ($26 billion) by 2024. It is estimated that financial services, including real estate, account for approximately 70% of the total security token market size.AIITONE CEO Lee Jin-yup underlined the importance of cooperation with a range of players that bring diverse resources, considering that the security token market involves high-value tangible assets such as real estate, music, and artworks. He said the partnership with Korea Asset Development will help the company secure a competitive edge in the burgeoning real estate security token market.Development in JapanNot just South Korea, but other East Asian nations too are experiencing significant strides in the security token market. Japan serves as a case in point, with companies like Mitsui & Co. Digital Asset Management (Mitsui & Co. DAM) exploring the potential of this emerging market.Mitsui & Co. DAM last month introduced a platform that allows retail investors to access security tokens backed by real-world assets. This initiative opens up previously inaccessible investment opportunities to a broader range of participants.Moreover, the Tokyo Metropolitan Government has taken an active role in supporting security token businesses within its jurisdiction. From May 31, 2023, to February 29, 2024, the government runs a subsidy program for security token projects based in the capital city. Under this program, eligible businesses can receive subsidies of up to 5 million yen ($36,000) per project.

BlackRock Investment Marks its Return to IndiaBlackRock, the world’s largest money manager with $9.4 trillion in assets under management, has made a significant move by joining forces with the financial services arm of Indian tycoon Mukesh Ambani.This strategic partnership aims to tap into India’s rapidly growing asset management market and marks BlackRock’s return to the country following a six-year absence.The collaboration between BlackRock and Jio Financial Services, a company built by Reliance Industries Limited, will establish a 50–50 joint venture called Jio BlackRock. BlackRock announced the collaboration via a statement published to its website on Wednesday.Photo by Naveed Ahmed on Unsplash$300 million investmentBoth companies plan to invest up to $150 million each in this venture. Larry Fink, BlackRock’s Chairman and CEO, articulated his satisfaction regarding the partnership in a LinkedIn post, emphasizing the significance of expanding BlackRock’s presence in India.Mukesh Ambani, the Founder and Chairman of Reliance Industries, is India’s richest man with a net worth believed to be in the region of $90.6 billion. The conglomerate is the country’s largest listed company by market share. Collaborating with BlackRock will likely strengthen its position in the financial services sector.The joint venture aims to leverage BlackRock’s expertise in investment and risk management, combined with Jio Financial Services’ technological capabilities and deep market knowledge. The objective will be to provide “tech-enabled access to affordable, innovative investment solutions” for Indian investors. With rising affluence, favorable demographics, and the ongoing digital transformation across industries in India, the market is undergoing a significant shift.Potential implications for cryptoThis move comes shortly after Jio Financial Services was spun off from its parent company, Reliance Industries. The digital-first service is focused on delivering innovative investment solutions to cater to the growing needs of Indian investors.While there’s absolutely no mention of crypto relative to this announcement, it may still have implications for crypto in India. BlackRock has progressed from taking a dim view of Bitcoin and crypto to now turning towards this new asset class. It recently filed an application to launch a bitcoin exchange-traded fund (ETF) in the United States. That move is considered highly significant by most market commentators.Given that Jio Financial takes a digital-first approach and that the idea of the partnership is to bring the latest financial products to retail customers in India, there’s potential for this new entity to bring digital asset-related products to that market.Indian market re-entryBlackRock’s re-entry into India’s asset management industry is not the first attempt by the US investment management firm. In 2018, BlackRock exited the Indian market by selling its 40% stake in an asset management venture to partner DSP Group, but the company recognizes the enormous potential that India presents.Over the past five years, assets under management of Indian mutual funds have doubled, reaching 44.39 trillion rupees ($542 billion) by June this year. The exponential growth in this sector highlights the immense opportunities India offers to global asset managers like BlackRock.While the launch of the joint venture is subject to closing conditions and regulatory approvals, the collaboration between BlackRock and Jio Financial Services appears to be poised to unlock the power of investing for millions of people in India.