CarrieVerse token CVTX listed on Bitget

CMB International Securities, the brokerage and investment banking arm of China Merchants Bank (CMB), has acquired a virtual asset trading license and rolled out related trading services in Hong Kong.Photo by Traxer on UnsplashFirst Chinese bank-affiliated brokerage to add crypto servicesThe development is significant as it marks the entry of the first brokerage firm directly affiliated with a Chinese bank into the digital assets arena. It takes on further significance due to the importance of its parent company within financial services in Asia.Recent reports suggest that China Merchants Bank has assets under management (AUM) of RMB 15 trillion, equating to around $2.1 trillion. Headquartered in Shenzhen, the bank is China’s seventh largest in terms of AUM. Compared globally, an S&P Global Market Intelligence report published in 2024 positioned the bank in 25th place by measure of AUM. CMB International Securities disclosed that it started offering such services on Aug. 18 via a post on the Chinese social media platform WeChat. It explained that the launch followed the company’s acquisition of an upgrade to its existing trading license from Hong Kong’s Securities and Futures Commission (SFC) on July 11, authorizing the brokerage to offer virtual asset trading. 24/7 digital asset tradingThe company outlined that it has added virtual asset trading via its mobile application, offering qualified investors 24/7 digital asset trading. Following the launch, eligible investors can now trade Bitcoin (BTC), Ethereum (ETH) and the USDT stablecoin. These professional or eligible investors must open a CMB International Securities cash account before they can commence trading digital assets on the CMB platform. Given the ongoing ban on crypto trading activity within mainland China, CMB International has to ensure that its product offering doesn’t reach mainland residents. At the time of the company being awarded its virtual assets trading license last month, Hong Kong Web3 Association Co-Chair Joshua Chu spoke to that requirement. He stated:“By securing this licence, CMBI gains regulated access to Hong Kong’s dynamic crypto market, yet it must operate within strict boundaries that prevent direct mainland participation, reflecting the delicate balance of innovation and legal constraint.” ‘One country, two systems’“One country, two systems” is a constitutional principle of the People’s Republic of China that enabled the reunification of Hong Kong with China back in 1997. Many believe that while Beijing continues to impose a ban on crypto and hasn’t been vocal in its support of Hong Kong’s embrace of the crypto sector, there is an implied support nonetheless of Hong Kong’s development as a crypto hub.Hong Kong’s separate system allows China to let it develop as a proving ground for virtual assets. That tacit support has encouraged companies like Beijing-headquartered Tiger Brokers to pursue virtual asset trading licensing within the Chinese autonomous territory. Similarly, Victory Securities, a Hong Kong firm with a significant presence within the mainland Chinese market, has also pursued digital asset-related licensing in Hong Kong. This isn’t CMB International’s only crypto-related venture. Earlier this month, the company partnered with Singaporean digital asset exchange DigiFT in launching the Hong Kong-Singapore Mutual Recognition Fund. The development marked the first money market fund to be hosted on the Solana blockchain. 

SBI and Saudi Aramco to explore digital asset business partnershipsJapanese financial services conglomerate SBI and Saudi Arabia’s state-controlled energy giant Saudi Aramco have jointly announced their exploration of potential collaboration in the realms of digital assets and semiconductors.Photo by Chris Liverani on UnsplashDigital asset portfolio co-investingThe partnership, which was publicly disclosed last week, aims to delve into co-investing in each other’s digital asset portfolios. Such an arrangement will leverage SBI’s substantial holdings and the formidable position of Aramco as the world’s second-largest company by revenue, boasting a staggering $604 billion figure. The partnership will mark a strategic alliance that goes beyond geographical boundaries, underscoring the global impact of digital asset investments.The collaboration between SBI and Aramco extends beyond mere investment, with SBI actively seeking to identify Japanese digital asset startups keen on expanding their operations into Saudi Arabia. The joint effort aims to provide comprehensive support to these startups, facilitating their integration into the Saudi market and contributing to the growth of the digital economy.SBI Middle EastIn addition to this venture, SBI is set to establish “SBI Middle East” in Riyadh, serving as a central hub for its operations in the Middle East. This move aligns with SBI’s recent announcement of a $100 million joint fund with Standard Chartered, based in Dubai, solidifying its commitment to fostering financial partnerships in the region.When contemplating cryptocurrency activities in the Middle East, Saudi Arabia might not be the first destination that comes to mind, given Turkey’s significant crypto adoption rate and the UAE’s well-established crypto regulatory authorities, such as Dubai’s VARA and Abu Dhabi’s ADGM.However, Chainalysis data reveals that Saudi crypto activity is steadily gaining ground, experiencing the most significant year-on-year growth (12%) to June 2023. Additionally, the country’s Vision 2030 initiative involves efforts to diversify its economy. With that, blockchain and Web3 are being embraced.TokenizationWhile lacking a formal crypto regulatory regime, recent reports suggest that Saudi regulators are warming up to the idea, indicating a shift in approach. A recent collaboration has emerged between the central banks of Saudi Arabia and Hong Kong which will explore tokenization and payments infrastructure.It is noteworthy that both SBI and Aramco explicitly referred to “digital assets” in their collaboration, avoiding the mention of cryptocurrencies. This emphasis raises the possibility that the focus might extend to tokenization, an area where SBI has a robust presence, notably through the establishment of the Osaka Digital Exchange (ODX), set to commence trading tokenized securities later this month.As part of its digital asset investments, Saudi Aramco has previously engaged in blockchain initiatives, including investments in VAKT, a post-trade solution for the oil sector. Additionally last year Aramco invested in blockchain startup Data Gumbo, which utilizes blockchain in order to bring about operational efficiencies. The collaboration extends to the approval of electronic bill of lading (eBL) providers like TradeGo.In February, Aramco signed an agreement with droppGroup to build out a range of Web3 technologies. Furthermore, Aramco’s investments in companies like Red Date Technologies and IR4LAB underscore its interest in developing blockchain-based services, including document and supply chain solutions.

Zodia Custody to Commence Yield Offering on StablecoinsIn a play that’s designed to entice institutional investors, Zodia Custody, a portfolio company of Japanese financial services conglomerate SBI, is gearing up to offer a yield on digital assets.Photo by CoinWire Japan on UnsplashIntroducing “Zodia Custody Yield”The crypto startup has introduced “Zodia Custody Yield,” a crypto staking option designed to reward holders of crypto assets stored within its platform. The initiative has been launched in partnership with Singapore-based DeFi platform OpenEden. It promises returns on stablecoins although full details on the offering remain undisclosed.Jeremy Ng, Co-Founder of OpenEden, expressed his belief in the potential of cryptocurrencies to generate substantial passive income for their holders. Ng stated:“There are billions of dollars worth of stablecoins sitting on the sidelines when they could easily be generating yields for investors.”TradFi embracing digital assetsZodia’s move aligns with a growing trend in the financial industry. Yesterday, a leading US bank, Citi, disclosed its collaboration with Maersk to facilitate services that convert funds into digital assets. The primary goal is to enable the bank’s customers to execute nearly instantaneous payments, unrestricted by traditional business hours.Simultaneously, several prominent asset management firms are awaiting a pivotal decision from the Securities and Exchange Commission (SEC) regarding their applications to launch a spot Bitcoin exchange-traded fund (ETF). This list includes major players such as BlackRock, Invesco, WisdomTree, ARK Invest, Valkyrie, and Franklin Templeton. BlackRock, the frontrunner in the efforts being expended towards ETF approval, submitted its application for a spot Bitcoin ETF on June 16.In a recent interview, Bloomberg analyst Eric Balchunas said that he expects $150 billion in capital to flow into the Bitcoin market within two years of a spot Bitcoin ETF approval in the US.The financial strategies of these entities now prominently feature blockchain and crypto-based products, once considered niche but now integral to their operations. Nonetheless, even with widespread anticipation of the approval of BlackRock’s ETF, the firm faces substantial obstacles. US regulators have subjected BlackRock to intense scrutiny due to concerns regarding its ties to China. Additionally, political figures have criticized the asset manager for prioritizing environmental, social, and governance (ESG) criteria over investor returns.Zodia was spun out of British multinational banking firm Standard Chartered. The bank has a positive outlook relative to crypto. In a bold prediction made in June, the UK-based bank forecasted that the value of Bitcoin could potentially surge to $50,000 by the end of the year, with an even more optimistic projection of $120,000 for 2024.In 2021 Standard Chartered, in collaboration with Northern Trust, a leading asset servicing firm, founded Zodia Custody. Since its inception, the venture has garnered a respectable level of success. It successfully secured $36 million in investments and solidified a partnership with SBI Digital Asset Holdings, enabling its expansion into the Japanese market.In May, the firm launched its crypto custodian service in Dubai, having signed a memorandum of understanding (MOU) with the Dubai International Financial Center (DIFC). In June, Zodia partnered with blockchain infrastructure provider Blockdaemon, in an effort to further its crypto staking offering. Earlier this month, the company announced its arrival in Singapore, with a view towards expanding its digital asset custody service there.