Lillius and Crypto.com Team Up for NFT Collaboration and Global Marketing

HSBC and Ant Group advance blockchain-based tokenized deposit systemThe Hong Kong and Shanghai Banking Corporation (HSBC), the largest bank in Hong Kong, and Ant Group, China’s leading financial conglomerate, have successfully conducted tests in a sandbox environment facilitated by the Hong Kong Monetary Authority (HKMA) to explore the potential of tokenized deposits.Photo by Robert Bye on UnsplashIssue, transfer and redemption of tokenized depositsAccording to Cointelegraph, the primary objective of this collaborative effort was to assess a system for issuing, transferring and redeeming tokenized deposits. The trial aimed to gauge the capacity of tokenized deposits to provide for greater efficiency, allowing for real-time treasury fund transfers for corporate accounts within the HSBC network to transpire seamlessly at any hour, 24/7.HSBC expressed its excitement regarding the results, stating that it will open avenues for future research on how blockchain technology and tokenization can drive efficiencies and innovations in corporate treasury management.The test harnessed a blockchain platform developed by Ant Group, leveraging the support of Ant Group’s banking partners. These partners played a pivotal role in enhancing the efficiency of treasury fund transfers by reducing turnaround times, increasing cost efficiency and improving overall visibility.Vincent Lau, Global Head of Emerging Payments and Global Payments Solutions at HSBC, emphasized the bank’s keen interest in integrating tokenized deposits and other financial innovations into its future strategy. This approach is designed to streamline and optimize treasury management services for its clients.Crypto and blockchain project involvementHSBC has maintained a proactive stance in exploring the potential of blockchain technology. The bank has participated in numerous initiatives related to central bank digital currencies (CBDCs), notably Project mBridge, a multi-CBDC platform developed by SWIFT. This initiative supports real-time, peer-to-peer, cross-border payments and foreign exchange transactions using CBDCs.It emerged earlier this year that HSBC was collaborating with the HKMA on its e-HKD CBDC pilot program. Part of that project implicated the use of tokenization relative to real world assets (RWAs), an area that the real-time gross settlement platform Ripple was providing expertise on.In June, HSBC took a significant step by launching local cryptocurrency services in Hong Kong, which included support for trading Bitcoin and Ether exchange-traded funds (ETFs) listed on Hong Kong’s stock exchange. The supported products encompass the CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF and Samsung Bitcoin Futures Active ETF.In the same month, the HKMA encouraged HSBC alongside Standard Chartered to provide banking service support to fledgling crypto businesses in Hong Kong, having identified an issue with the extension of banking services to the sector within the Chinese autonomous territory. Meanwhile, Ant Group has been central to the progression of blockchain technology within China.HSBC’s expansion into crypto-related services aligns with the growing interest in digital assets, occurring in the aftermath of the launch of retail crypto trading in Hong Kong on June 1.

Seoul Auction Blue seeks to register security tokens with the FSS for Andy Warhol’s artworkSeoul Auction Blue, the operator of fractional artwork investment platform Sotwo, recently submitted an application to the South Korean Financial Supervisory Service (FSS), local news outlet Seoul Economic Daily reported on Wednesday (local time). Its aim is to register security tokens linked to artworks with the financial authority, marking it the third entity in the country to pursue this innovative financial venture.Photo by Guido Coppa on UnsplashAndy Warhol’s ‘Dollar Sign’The artwork investment app plans to issue security tokens based on Andy Warhol’s “Dollar Sign,” a piece measuring 51.0 cm in height and 40.5 cm in length. This artwork was purchased by Seoul Auction Blue at an auction for KRW 626.2 million (approximately $485,000). The total value of the security tokens, inclusive of issuance costs, is approximately KRW 700 million. The firm will issue a total of 7,000 tokens, each valued at KRW 100,000. Upon receiving regulatory approval, Seoul Auction Blue is set to open for subscription requests from Dec. 20 to 26.In its endeavor to issue digital investment contract securities, Seoul Auction Blue has meticulously prepared its documentation in line with the FSS’s guidelines. The selection of the artwork of Andy Warhol, the renowned and iconic 20th-century artist, aligns with the FSS’s recommendation to choose a significant piece by an internationally acclaimed artist. This strategic choice reflects the company’s commitment to compliance and the recognition of Warhol’s global stature in the art world.Preventing conflicts of interestThe registration application submitted by Seoul Auction Blue includes specific restrictions aimed at preventing conflicts of interest with its affiliates related to security tokens. As per these rules, the company is barred from buying idle assets of affiliates to back its security tokens. Instead, Seoul Auction Blue is permitted to acquire them only through public methods like participating in an open bid or a post-sale bid process. Notably, the token issuer is in principle prohibited from purchasing these assets via intermediaries in private sales or any other non-transparent settings.The acquisition of underlying assets requires approval from the compliance monitoring committee. Furthermore, this regulation strips Seoul Auction Blue of the capacity to determine the final trading prices or conditions for these transactions.In addition, the company is collaborating with a couple of securities firms to safeguard investors’ funds, creating a buffer against any potential bankruptcy of the issuer. The funds raised from subscriptions for the security tokens will be managed in accounts overseen by KB Securities. Additionally, an investor protection fund is being set up, which will be handled as a trust fund by Shinhan Securities. This fund acts as an extra layer of security, offering investors enhanced protection for their investments.

Indian PM Narendra Modi Calls for Global Crypto Regulatory FrameworkAmid the rising tide of emerging technologies like cryptocurrency and artificial intelligence, Indian Prime Minister Narendra Modi has emphasized the urgent need for a worldwide regulatory framework to ensure user safety and ethical utilization.His remarks were delivered at the G20 Summit India 2023, where he stressed the importance of cohesive global efforts in shaping the future of technological advancements.Photo by Shubham Dhage on UnsplashG20 PresidencyIndia, currently holding the G20 Presidency for 2023, has taken a strong stance in advocating for the establishment of a comprehensive global regulatory framework for cryptocurrencies. Earlier this month, the country released a presidency note outlining its insights into the proposed framework.These recommendations are closely aligned with the guidelines set forth by authoritative bodies such as the Financial Stability Board (FSB), the Financial Action Task Force (FATF), and the International Monetary Fund (IMF).Notably, India’s presidency note extended its considerations beyond established economies to include provisions for developing nations relative to crypto. At the time, it was revealed that a collaborative “synthesis paper” was in the works, jointly crafted by the IMF and the FSB. This paper, set to be unveiled by the end of August, will delve into the global macro implications stemming from the adoption and growth of cryptocurrency. The timing of this release is particularly significant, coinciding with the upcoming G20 Summit scheduled for September 9.Establishing a global frameworkAddressing the G20 Summit, Prime Minister Modi articulated his vision for a world unified under a comprehensive regulatory framework not only for cryptocurrencies but also for the ethical utilization of emerging technologies like artificial intelligence. In an interview with media platform Business Today, he emphasized the reality of rapid technological progress sweeping across the globe. Instead of dismissing or wishing away these advancements, Modi underscored the need for proactive adoption, democratization, and a unified global approach.Modi’s perspective underscores his support for a harmonized global strategy when it comes to formulating regulatory frameworks for emerging technologies. Drawing a parallel with the aviation industry, he highlighted how air traffic control and air security are governed by common global rules and regulations, illustrating the effectiveness of a consensus-based model.Expanding on the implications of India’s G20 presidency, Modi shed light on the deliberations centered around cryptocurrency’s potential impact within broader macroeconomic contexts, particularly within emerging and developing economies.Regulatory needs at a national levelWithin India, various stakeholders have been struggling with the regulation of cryptocurrencies themselves. In July, the Indian Supreme Court criticized the government for its failure to establish clear crypto-related regulations. The country’s central bank, the Royal Bank of India (RBI), has been less enthusiastic about decentralized cryptocurrency, warning of the risks extended by stablecoins more recently. Instead, it has proven to be far more interested in advancing the use of permissioned blockchain networks and a central bank digital currency (CBDC).The proposition of a globally accepted set of guidelines for cryptocurrency regulation has garnered substantial support from authorities worldwide as they begin to understand the difficulty that decentralized technology presents in terms of controlling it. If Modi’s vision translates into reality, it could mark a significant step toward standardizing the governance of cryptocurrencies on an international scale.