Buysell Standards and AGST collaborate to expand security token projects in Southeast Asia

Crypto.com, the Singapore-based cryptocurrency exchange and digital asset brokerage, announced that it introduced an institutional trading platform in the United States. In a statement published on its website on Jan. 21, the company outlined that U.S. institutional and advanced traders can now access the new platform. The firm believes that the offering complements its retail-facing Crypto.com app., which currently serves the U.S. market.Photo by Joshua Hoehne on Unsplash480 trading pairsThe institutional-grade platform will enable access to over 300 cryptocurrencies and 480 trading pairs. The product is likely to appeal to a similar market segment as those clients targeted by the Crypto.com Custody Trust Company, a digital asset custodian, which was established last month. At that time, Crypto.com co-founder and CEO Kris Marszalek said that launching the digital asset custodian was the latest step on the company’s product roadmap, with a view towards building a business and a market presence within the U.S. and Canada.  Responding to this latest product offering, Marszalek stated: “We took the time to build the best possible product for institutional and advanced users around the world and we are now incredibly excited to fully introduce it in the market we continue to be bullish about – the U.S.” Marszalek added that Crypto.com has invested heavily in the exchange’s technological capabilities and banking rails. The Crypto.com CEO believes that this investment has resulted in exponential global growth for the company, with the platform becoming a leading U.S. dollar-supporting exchange. Regulatory tailwindsCrypto.com’s bullishness regarding the U.S. market currently stands in contrast with developments in June 2023 when the company decided to shut down its institutional exchange offering, citing limited demand amid a bleak market landscape for crypto in the United States.  At the time, the company was one of several to look towards opportunities outside of the U.S. Shortly afterwards, Crypto.com obtained a crypto trading license in Dubai. Competitors Gemini and Coinbase followed a similar strategy, looking at growth opportunities in the Middle East and Asia. It’s clear that a regulatory crackdown in the U.S. at that time curbed the expansion plans of many cryptocurrency platforms. Many industry experts are of the belief that there will be a pro-crypto Securities and Exchange Commission (SEC) in the U.S. as part of the newly seated Trump administration.  Regulatory clarity is necessary for institutional involvement in the digital assets sector. Last week, Mark Uyeda, Acting Chairman of the SEC, announced the formation of a crypto task force with the objective of creating a clear regulatory framework for crypto. The U.S. is home to the world’s largest capital markets. A report produced by New York-headquartered blockchain analysis firm Chainalysis late last year identified that 70% of North American crypto transactions involved transfers that had a value in excess of $1 million, pointing to the level of institutional activity within that market.  Earlier this month, Crypto.com added the ability for U.S. platform users to trade stocks and exchange-traded funds (ETFs).

The long-awaited approval of spot bitcoin exchange-traded funds (ETFs) in the U.S. on Tuesday is anticipated to have a more substantial impact on the development of cryptocurrencies in Asia. That’s the view of Yat Siu, the co-founder of Animoca Brands, a Hong Kong-based crypto venture capital and game software firm. The U.S. Securities and Exchange Commission's (SEC) approval is expected to attract new capital to the crypto industry, providing a safer avenue for the crypto-curious.Photo by André François McKenzie on UnsplashPotential for surge of interest in AsiaIn an interview with The Block, Siu emphasized the positive effect on Asia, attributing it to the region's regulatory clarity and the willingness of governments and regulators to build a crypto ecosystem. Strengthening regulatory oversight was a finding of a recent report relative to a number of Asian hubs. Industry leaders believe that the approval of spot bitcoin ETFs in the U.S. could lead to a surge of interest in Asia, where crypto adoption is already higher than in other continents. The perception of cryptocurrencies as investment assets, rather than just for transactions, might shift in the Asian market, with the ETF offering a regulated and lower-risk avenue for investment exposure. Additionally, Yat Siu noted that Asian investors, particularly the younger generation, have a more open view towards capitalism compared to their U.S. counterparts. In a recent interview with CNBC, Australian venture capitalist and founder of MHC Digital Group, Mark Carnegie, also expressed the opinion that the digital asset markets in Asia would flourish once the hype of the U.S. ETF approval has subsided. ETF focus on Singapore and Hong KongPost the U.S. approval, attention turns to Asia, with Hong Kong and Singapore emerging as potential candidates for introducing spot crypto ETFs. Hong Kong, in particular, has undergone regulatory renewal, positioning itself as a crypto hub, with it reportedly already attracting interest from fund managers, including those backed by Chinese capital, looking into launching spot crypto ETFs. Yat Siu alongside Glenn Woo, Head of Sales of APAC at Web3 infrastructure company Blockdaemon, were both positive in their assessment of Hong Kong as a worthy location for the offering of spot bitcoin ETFs in comments made last month. In November, the CEO of Hong Kong’s Securities and Futures Commission (SFC) indicated an openness to considering proposals for spot crypto ETF products aimed at retail investors. Singapore, known for its mature regulatory environment, is also considered a strong contender. Meanwhile, Japan may witness significant regulatory movement following the U.S. ETF approval. However, challenges and variables remain for Asia. The scale of capital inflows in Asia, compared to the U.S., and the caution of regulators in the face of crypto industry volatility and trust issues are cited as potential hurdles. Some experts suggest that Hong Kong and Singapore may initially be cautious in encouraging retail participation in virtual asset investments due to previous losses experienced by residents. Still, in the medium to longer term, increased interest and appetite for virtual assets are expected.  

Standard Chartered Muscling Into Asian Crypto SpaceUK banking giant Standard Chartered is making a concerted foray into the Asian crypto sector through its Singapore-based subsidiary, Standard Chartered Ventures.Photo by Kirill Petropavlov on UnsplashTargeting institutional businessThat’s according to a report by Nikkei Asia on Tuesday. It’s believed that the company is positioning itself as a trusted choice for institutional cryptocurrency clients amid the backdrop of digital token price volatility and recent upheavals in the industry. The move will pit the British bank directly against global crypto exchange Binance in key Asian markets, specifically Singapore and Japan.Rene Michau, the Global Head of Digital Assets at Standard Chartered, emphasized what he considers to be the bank’s unique advantage in the digital asset space, stating:“As regulated banks, we have a fairly deep infrastructure around risk, conduct compliance, and the activities that go along with crypto assets.”This solid infrastructure includes established risk frameworks, governance structures, and compliance tools that Standard Chartered is keen to bring into the cryptocurrency sphere, thus making it an attractive option for its clients.Zodia Custody and Zodia MarketsStandard Chartered’s substantial involvement in the cryptocurrency market is channeled through its majority ownership of Zodia Custody, responsible for safeguarding digital assets, and Zodia Markets, a crypto exchange tailored for institutional clients.Both entities have been making significant progress in bringing their offerings to market in recent months. Zodia Custody recently launched its services in Singapore, offering a secure solution for financial institutions to manage their crypto holdings. Last month it launched a crypto staking product targeted at institutional clients.In the same month, Zodia Markets achieved in-principle approval to trade as a broker-dealer in the United Arab Emirates. Zodia Custody has also been successful in the UAE, launching its crypto custodian service in Dubai in May.Japan and SingaporeThis concerted effort by Standard Chartered follows a broader trend where traditional financial institutions, such as DBS Group Holdings in Singapore, are entering the cryptocurrency market, capitalizing on the challenges faced by younger crypto players in proving their credibility.Binance rebranded its Binance Custody unit as Ceffu and expanded its offerings for corporate customers in Singapore. While Binance asserts the independence of Ceffu, the exact nature of their capital relationship remains undisclosed.A parallel competition is unfolding in Japan, where Binance Japan has entered the market and Standard Chartered’s Zodia Custody has formed a joint venture with SBI Digital Asset Holdings, targeting institutional clients.While Standard Chartered has achieved a lot through its crypto-focused subsidiaries in a short space of time, there’s always room for improvement. In June, Hong Kong’s banking regulator singled out Standard Chartered alongside HSBC, appealing to both banking groups to make greater efforts to bank crypto clients within the Chinese autonomous territory, as it looks to compete with Singapore in becoming a regional crypto hub.The cryptocurrency sector has witnessed increased scrutiny as virtual currencies like Bitcoin and Ether have gained popularity. The rise of digital token exchanges, each vying for custody of assets belonging to investors who have embraced cryptocurrencies, has sparked concerns about corporate governance and security.Giants in traditional finance, like Standard Chartered, are stepping in to offer institutional investors a safer path to engage with virtual assets while leveraging the trust associated with established brands.