Japanese Banking Giant Joins Tech Firms to Build Cross-Chain Stablecoin Infrastructure

Several leading Chinese technology firms have reportedly shelved their plans to launch stablecoins in Hong Kong, following regulatory pushback from the People’s Bank of China (PBOC) and the Cyberspace Administration of China (CAC). According to the Financial Times, the authorities have expressed growing concerns over the risks posed by privately issued digital currencies, prompting companies to delay their initiatives.Photo by Jacky Yu on UnsplashBeijing’s focus on control and digital yuanThe companies’ hesitation underscores Beijing’s broader push to preserve control over its monetary system while advancing the rollout of its central bank digital currency (CBDC), the e-CNY. Earlier this month, the PBOC unveiled a new Shanghai-based center to oversee the e-CNY’s international operations, signaling China’s ambition to extend the digital yuan’s reach beyond its domestic market. Over the summer, companies including Ant Group, backed by Alibaba, and e-commerce platform JD.com signaled interest in Hong Kong’s pilot stablecoin initiative or in issuing crypto products such as tokenized deposits. Those plans are now on hold as firms assess policy signals from Beijing and weigh the implications for their businesses. Research efforts reflect China’s cautious approachChina’s cautious stance is also reflected in its research priorities. The National Natural Science Foundation of China (NSFC), a vice-ministerial body under the Ministry of Science and Technology, has begun inviting grant applications for projects focused on stablecoins and cross-border regulatory frameworks. In announcing the initiative, the NSFC cautioned that the unchecked circulation of privately issued stablecoins could erode the effectiveness of the country’s capital controls. Globally, approaches to fiat-pegged digital assets diverge. In the United States, President Donald Trump in July signed the GENIUS Act, the country’s first stablecoin legislation, into law. A White House fact sheet argued that stablecoins could strengthen demand for U.S. Treasuries and reinforce the dollar’s standing as the world’s dominant reserve currency. In Europe, however, regulators remain wary. In a blog post that same month, European Central Bank (ECB) adviser Jürgen Schaaf warned that the widespread use of U.S. dollar-denominated stablecoins in the euro area could pose financial risks, noting that dollar-based tokens already account for the vast majority of global stablecoin market capitalization. Geopolitics adds to market volatilityThe recalibration by Chinese firms comes against a turbulent geopolitical backdrop. Cointelegraph, citing President Donald Trump’s interview with Fox News, reported that Trump is expected to meet Chinese President Xi Jinping in South Korea during the Asia-Pacific Economic Cooperation (APEC) summit, scheduled for Oct. 31 to Nov. 1. The anticipated meeting follows a string of shifting statements from Trump throughout October—ranging from skepticism about meeting Xi, to announcing new 100% tariffs on Chinese imports, and later adopting a more conciliatory tone. The back-and-forth has coincided with heightened volatility across crypto markets. Market turbulence deepened as a wave of liquidations swept through crypto derivatives, erasing nearly $20 billion in positions on Oct. 10, the largest such event on record. Bitcoin plunged to as low as $104,749 on Oct. 17 and has since rebounded to around $114,000 as of Oct. 28. The pullback by Chinese tech groups underscores the fine line regulators and firms must navigate: advancing digital finance innovation while safeguarding monetary stability and control. How that balance is managed across China, the U.S., and Europe will shape the future of stablecoins and define their place in the evolving global financial order. 

South Korean gaming publisher Wemade is set to participate in this year’s Taipei Game Show, the largest gaming exhibition in Taiwan, according to local news outlet Kookmin Ilbo on Tuesday (KST). The event is scheduled for Jan. 25 to 28 at the Taipei Nangang Exhibition Center.Photo by Timo Volz on UnsplashSneak peek at upcoming blockbustersThe company plans to operate an exclusive booth, where it will showcase game developer Madngine's massively multiplayer online role-playing game (MMORPG) Night Crows and Round 1 Studio's baseball game Fantastic 4 Baseball. Both games are slated for global release in the first quarter of this year. Game demos and various events will also be held to promote the releases and attract gamers. Games for a diverse gamer baseNight Crows has been popular among gamers in South Korea, where it launched in April last year, topping the popularity and revenue rankings on major app markets. The global version of the game utilizes blockchain technology to implement an advanced tokenomics ecosystem. Global pre-registration will open on Jan. 11. Round 1 Studio’s Fantastic 4 Baseball is a realistic baseball game where players can create their own team with famous players from various leagues, including the Chinese Professional Baseball League (CPBL). The demo version includes single-player and home run derbies. 

Recently, the top five Korean banks have seen a significant outflow of funds in their demand deposits – worth about KRW 2 trillion ($1.52 billion) – to crypto markets as local investors are rushing to withdraw their money from banks to invest in the crypto and stock markets. The recent surge of Bitcoin to KRW 100 million prompted the funds’ outflow, local media Etoday reported. This is a substantial turn from just a week ago, when these banks saw a KRW 23.5 trillion increase in their demand deposits just in a month.  The previous rise in demand deposits at banks, however, was also driven by local investors who used these accounts as a “station” to temporarily store their money for future crypto investments. These accounts are highly liquid, since users can deposit or withdraw funds at any time without incurring penalties from banks.Photo by Emile-Victor Portenart on UnsplashBank deposits flowing into crypto Data from the five banks –  KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH Nonghyup Bank – show that their combined demand deposits totaled KRW 612.4 trillion on Friday, down KRW 2.2 trillion from late last month.  The crypto investing trend has prompted investors to withdraw their funds not only from demand deposit accounts, but also from fixed deposit and installment savings accounts. During the same period, the five banks’ fixed deposits saw a KRW 5.1 trillion decline from KRW 886.2 trillion to KRW 881 trillion, with installment savings decreasing by KRW 2.5 trillion, from KRW 33.2 trillion to KRW 30.6 trillion.  In particular, NH Nonghyup Bank, which offers real-name accounts to the crypto exchange Bithumb, has witnessed a decline of over KRW 2 trillion in its demand deposits over the past week. Shinhan Bank also reported an increase in dealing with more crypto assets.  Bullish crypto and stock market With Bitcoin prices hitting a new high, the U.K. bank Standard Chartered forecasts that Bitcoin could eventually reach $200,000 by 2025. The excitement around crypto has boosted the amount of cryptocurrencies traded against the Korean won across the top five crypto exchanges in Korea, reaching KRW 78 trillion.  Korean stock markets are also signaling a bullish sentiment, with the amount of investor deposits exceeding KRW 53 trillion this month. Investor deposits refer to customer deposits at securities companies saved for investment purposes or those left unclaimed after selling stocks.  Declining interest rates Meanwhile, local savings products with over 4% interest rates are no longer to be seen. According to the Korea Federation of Banks, a one-year savings product with the highest interest rate among the top five local banks offers an annual rate of 3.55%.  Online-only banks, which typically offer relatively higher rates than other traditional banks, are rapidly lowering rates on their saving products. The highest annual rate for Kakao Bank’s fixed deposits products stands at 3.5%, down by 0.1 to 0.2 percentage points depending on their maturity.  Kbank has also decreased rates for fixed deposits by 0.05 percentage points, lowering the rate for its flagship fixed deposits product from 3.7% to 3.65%.