dtcpay forges strategic partnership in launch of crypto payments system

Standard Chartered Bank Hong Kong, a licensed bank and subsidiary of British multinational banking group Standard Chartered, has partnered with local companies to launch a Hong Kong dollar-based stablecoin in the Chinese autonomous territory.Photo by Chapman Chow on UnsplashJoint venture formed In a press release published by Animoca Brands, a blockchain-based gaming and Web3 venture capital firm based in Hong Kong, the company outlined details of the partnership between it and Standard Chartered, alongside Hong Kong Telecom (HKT), Hong Kong’s dominant fixed-line, mobile and broadband telecommunications firm. The partnership has been structured as a joint venture between the three companies, with the objective of launching the Hong Kong dollar-backed stablecoin. Local regulator and central bank, the Hong Kong Monetary Authority (HKMA) has been working towards implementing a regulatory framework specifically dedicated to stablecoins.  Legislative framework incoming As of the end of 2024, proposed legislation that would enable such a framework had advanced to Hong Kong’s Legislative Council. Before the bill can be enacted into law, the legislative process requires three readings of the bill accompanied by a series of debates and the scrutiny of lawmakers.  Once the legislation has been signed into law, it will require stablecoin issuers to obtain a license from the HKMA. In the case of this particular joint venture, the promoters plan to apply for a license in due course. Standard Chartered is already deeply embedded in Hong Kong’s financial system, making this latest development all the more significant. Alongside HSBC and Bank of China (Hong Kong), Standard Chartered issues the local currency, the Hong Kong dollar. That activity is carried out under the oversight of the HKMA.  The HKMA launched a sandbox environment relative to stablecoins in order to provoke an exchange of views between the regulator and market participants. The three parties to this latest joint venture have been sandbox participants since July of last year, alongside JINGDONG Coinlink Technology and RD InnoTech. JINGDONG declared its intention to launch a Hong Kong dollar-backed stablecoin last year. RD InnoTech plans to launch the HKDR stablecoin in conjunction with HashKey Exchange. Stablecoins ‘starting to eat the world’Earlier this month, Rene Michau, Standard Chartered’s global head of digital assets, set out the bank’s thoughts on stablecoins in an article published on the company’s website and co-authored by Circle Chief Financial Officer (CFO) Jeremy Fox-Green. Within it, Standard Chartered recognized the potential of stablecoins, suggesting that they are key to unlocking a future where blockchain acts as a new “internet of money.” The article went on to state that it is critical for stablecoin issuers “to maintain deep connections with strong banks and for those banks to be building digital asset capability.” The company recognizes that stablecoins are “starting to eat the world,” referring to a global stablecoin circulation that has already surpassed $100 billion.  Evan Auyang, President of Animoca Brands, pointed out that “we are still in the early stages for mass adoption of stablecoins across retail, enterprises and institutions.” He added that Hong Kong has a bright future as a global Web3 hub. Susanna Hui, Managing Director at HKT, believes that “issuing an HKD-linked stablecoin will enhance payment efficiency, streamline transactions, and provide greater security and transparency through advanced Web3 innovations.”

South Korean cybersecurity firm AhnLab’s blockchain arm, AhnLab Blockchain Company, is working with Web3 performing arts platform Metacultures to offer free limited edition NFTs to all visitors of the "School of Rock" musical world tour’s show in Seoul, according to local news outlet Etoday on Monday (KST). The NFTs will be issued via AhnLab Blockchain Company’s digital Web3 wallet, ABC Wallet. As a non-custodial wallet, this service uses multi-party computation to support multiple blockchain networks including Ethereum, Polygon and Klaytn.Photo by Gwen King on UnsplashPreserving memories"We aim to offer a way for Korean fans of the 'School of Rock' musical to preserve the special experience of the performance with this NFT," said Lim Joo-young, Business Leader at AhnLab Blockchain Company. "We will continue to carry out various projects based on blockchain technology at various events." Visitors who wish to receive the NFTs can scan the QR code provided at the performance venue and register an ABC Wallet using their social media accounts on the linked site, after which the NFT will be automatically issued to their wallets. "We are glad to be able to provide NFT products for the 'School of Rock' musical to the audience through ABC Wallet, which boasts excellent security. We look forward to various security-based collaborations with AhnLab Blockchain Company in the future," said Lee Sang-woon, CEO of Metacultures. Show detailsThe ongoing performance will be held until March 24 at the Seoul Arts Center’s Opera House in Seocho-gu, Seoul.

UBS extends crypto ETF access to clients in Hong KongMultinational investment bank UBS Group AG has followed suit with competitors like HSBC, enabling its wealthy clients in Hong Kong to engage in the trading of select crypto-linked exchange-traded funds (ETFs).Photo by Pierre Borthiry — Peiobty on UnsplashRegulatory approval to offer three ETFsThis move, reported by Bloomberg on Thursday, aligns with Hong Kong’s efforts to establish itself as a prominent digital asset hub. Citing an undisclosed source, Bloomberg outlined that three crypto ETFs, namely the Samsung Bitcoin Futures Active, CSOP Bitcoin Futures and CSOP Ether Futures, have received approval from the Securities and Futures Commission (SFC) and will be available on UBS’s Hong Kong platform starting this Friday.The inclusion of these ETFs allows UBS clients to diversify their investment portfolios, offering exposure to the dynamic crypto market. Educational materials will also be accessible to clients, aiding in their understanding of associated risks. While UBS declined to comment on this development, it marks a strategic move by the Swiss bank to tap into the growing demand for crypto-related investment products.In June, Hong Kong’s largest bank, HSBC, moved to expand its offering to include crypto ETFs. It has made available the very same crypto ETFs as UBS is about to offer.Hong Kong’s crypto credentialsHong Kong introduced a comprehensive digital asset regulatory regime on June 1, aiming to safeguard investors while fostering the Chinese autonomous territory’s emergence as a digital financial center. The SFC permits retail investors to trade major tokens on licensed exchanges under these regulations.Despite these regulatory advancements, Hong Kong faced setbacks, notably with the recent issues surrounding the unlicensed JPEX exchange, which led to increased scrutiny. The establishment of a joint task force between the SFC and the police aims to monitor and prevent suspicious activities within the crypto industry.Globally, financial institutions remain cautious about compliance risks in the crypto sector. However, signs of increased engagement are emerging. DBS, Singapore’s largest bank, has expressed its intention to seek a license to offer crypto services to Hong Kong customers. ZA Bank, the largest virtual bank in Hong Kong, plans to provide token-to-fiat currency conversions over licensed platforms. Furthermore, SEBA Bank, backed by the Julius Baer Group, has obtained a license for its unit to offer crypto services in Hong Kong.Unlocking ETF potentialA report published by the Hong Kong Stock Exchange in April claimed that crypto ETFs possess the potential to unlock the next phase of digital asset expansion in Asia. Earlier this week, it emerged that regulators were open to the notion of allowing retail access to spot crypto ETFs in Hong Kong, provided that the necessary regulatory approvals and checks were in place.The inclusion of the CSOP Bitcoin Futures and CSOP Ether Futures funds on UBS’s platform highlights the gradual recovery of the crypto sector from the market rout experienced in 2022. Despite the previous market challenges and collapses, the prospect of the U.S. allowing its first spot Bitcoin ETFs has contributed to a resurgence in the largest token’s price this year. The move by UBS aligns with the broader trend of financial institutions cautiously embracing the crypto economy, indicating a shifting attitude toward these digital assets in the financial mainstream.