Bakkt takes stake in Japanese textile firm in pivot to crypto treasury strategy

Nomura Subsidiary Launches Bitcoin Adoption FundNomura, Japan’s largest investment bank and brokerage group boasting over $500 billion in assets, has ventured further into the world of digital assets by unveiling its Bitcoin Adoption Fund through its digital asset subsidiary, Laser Digital Asset Management.The move signifies a further commitment from the Japanese financial services conglomerate in embracing digital innovation within the financial sector. The fund will cater specifically to institutional investors looking to explore the expanding area of digital assets.Photo by Kanchanara on UnsplashEnabling long-term Bitcoin exposureLaser Digital Asset Management is introducing the Bitcoin Adoption Fund as the first installment in a series of digital adoption investment solutions crafted with institutional investors in mind. The firm announced details of the new fund via a press release published to its website on Tuesday.The primary objective of this fund is to provide institutional investors with a long-term avenue for exposure to Bitcoin, enabling them to partake in the potential gains offered by the world’s most well-known digital asset.Sebastian Guglietta, Head of Laser Digital Asset Management, underscored Bitcoin’s pivotal role in ushering in a transformative global economic shift and posits that long-term exposure to Bitcoin is the ideal means for investors to harness this profound macroeconomic trend.“Technology is a key driver of global economic growth and is transforming a large part of the economy from analogue to digital,” Guglietta said. “Bitcoin is one of the enablers of this long-lasting transformational change and long-term exposure to Bitcoin offers a solution to investors to capture this macro trend,” he added.Komainu partnershipIn bringing the fund to market, Laser Digital has partnered with digital asset custodian Komainu. Komainu was founded in 2018 as a collaborative endeavor between Nomura, Ledger, and CoinShares.Nomura’s foray into digital assets is by no means a newfound interest. As early as September 2022, the firm had initiated its digital asset venture capital arm, positioning itself at the vanguard of digital innovation. In addition to this, Laser Digital secured a trading license from Dubai’s Virtual Asset Regulatory Authority (VARA) to operate within the United Arab Emirates (UAE).Nomura’s launch of the Bitcoin Adoption Fund is in perfect alignment with the broader trend of heightened institutional interest in Bitcoin-centric investment products. Regulatory bodies globally have granted approval for a range of Bitcoin-focused investment products in recent years, including Bitcoin-based futures exchange-traded funds (ETFs). These developments underscore the growing acceptance of cryptocurrencies within traditional finance circles.Laser Digital was founded by Nomura executives Steven Ashley and Jez Mohideen. Ashley previously led Nomura’s wholesale division while Mohideen was Nomura’s Chief Digital Officer and Co-Head of Global Markets for the EMEA region. The firm has invested in Singapore-based DeFi startup, Solv Protocol.It has registered as a mutual fund via the Cayman Islands Regulatory Authority, while the company has registered for product marketing purposes in Ireland, Luxembourg, and the UK.

HKMA reflects on retail CBDC pilot phase one completionHong Kong’s Monetary Authority (HKMA), the Chinese territory’s central bank, recently released a report following the completion of phase one of its central bank digital currency (CBDC) pilot, highlighting the potential benefits of a retail CBDC, commonly referred to as e-HKD (digital Hong Kong dollar).Photo by Ruslan Bardash on UnsplashUndecided on full implementationIn a press release published by the HKMA on Monday, the authority clarified that the report underscores that while a retail CBDC could bring value to the payments ecosystem and unlock new economic transaction possibilities, in-depth investigation and evaluation are essential before considering large-scale implementation.At this stage, Hong Kong’s central bank has not committed to introducing an e-HKD, but the report sheds light on the prospects and challenges associated with such a move. The region has been signaling its intent to position itself as a hub for virtual assets, evident in the regulatory framework introduced in June and the granting of licenses to crypto trading platforms in August.Project e-HKD, initiated by the HKMA in 2021, is a significant step toward assessing the feasibility of a digital Hong Kong dollar. The pilot program was launched in November 2022 as part of the HKMA's “Fintech 2025” strategy. However, the HKMA remains cautious, as reflected in the comments of HKMA CEO Eddie Yue earlier this month. Yue told the South China Morning Post that the central bank is still waiting for greater clarity when it comes to the technological, legal and societal aspects of full implementation.Three core attributes identifiedThe report identifies three primary areas where an e-HKD could provide value: programmability, tokenization and atomic settlement. These attributes could lead to faster, more cost-efficient and more inclusive transactions. However, it’s essential to note that the 14 pilot programs conducted with 16 participating firms during phase one were executed on a small scale within a controlled environment.The phase one review highlights that the true potential and prerequisites for implementing an e-HKD on a larger scale depend on market developments and further investigation. It acknowledges that minor issues identified during the pilot phase could become more prominent or even unacceptable in a production environment.Gearing up for phase twoPhase one of the pilot program delved into various aspects, including full-fledged payments, offline payments, tokenized deposits, programmable payments and the settlement of Web3 transactions and tokenized assets. Hong Kong is now gearing up for phase two of the pilot, with plans to explore new use cases for an e-HKD and engage in more focused pilot initiatives. The goal is to understand how the e-HKD can facilitate innovative methods of transacting goods and services while maintaining financial stability.The HKMA’s stance on a retail CBDC places it at the center of a global debate. While the U.S. remains undecided on the issue, with the topic becoming contentious in presidential elections, India has forged ahead with plans for a retail CBDC. Meanwhile, Thailand’s central bank commenced a pilot project for a retail CBDC earlier this year.

Bit Origin, the Nasdaq-listed (BTOG) pork processor turned crypto mining infrastructure firm, has acquired 40.5 million Dogecoin (DOGE), the company’s first purchase of the world’s largest memecoin by market cap since it announced that it was establishing a Dogecoin treasury. In a press release published on July 17, the Singapore-headquartered company with operations in the United States, Canada and China, set out that it would become the “first publicly listed company on a major US exchange to accumulate Dogecoin as a core asset.”Photo by Kanchanara on Unsplash$500 million treasury fundingThe firm outlined that it had entered into agreements with accredited investors, implicating the sale of $400 million in Class A ordinary shares in the company. An additional $100 million unlocked via convertible debt brought funding for its Dogecoin treasury to $500 million. Jinghai Jiang, Bit Origin’s CEO and Chairman, asserted that “what started as a joke has evolved into a globally liquid asset with a payments utility.” Jiang asserted that very few digital assets match the settlement speed and scale of community that Dogecoin offers. X Money potentialIn particular, he singled out the potential use of DOGE for X Money, a new payment system that is in the process of being established by Elon Musk’s X social media platform. Alongside many proponents of the cryptocurrency, Bit Origin is hoping that Musk will implement the use of DOGE to power X money. Jiang added:“In an age of broken institutions, Doge embodies a shared culture of optimism and resilience that transcends existing political and financial systems.” On social media, the company outlined that it believes in “Dogecoin not just as a meme, but as a future payments backbone.” Having utilized the services of Chardan Capital Markets as a placement agent, the company has already completed an initial closing of $15 million under the convertible debt facility that has been established.  On July 21, Bit Origin published another press release, detailing the acquisition of 40,543,745 DOGE with the memecoin holding having been purchased at an average acquisition cost of $0.2466 per DOGE.  Nearing inflection point for paymentsCommenting on the development, Jiang stated:“From our experience in mining, we understand the tradeoffs that define proof-of-work systems. We see Dogecoin’s utility potential for micropayments nearing an inflection point, driven by renewed developer activity and broader institutional interest in tokenization.” Dogecoin emerged in December 2013 having been developed by Jackson Palmer and Billy Markus as a joke. The project borrowed much of its code from Bitcoin. Despite having originated as a joke, the project has developed a sizeable community. The digital asset currently holds a market capitalization of $40.5 billion, according to CoinMarketCap data.  Bit Origin rebranded from China Xiangtai Food Co., Ltd. in April 2022. Up until that point, it had been involved in the pork processing business. The company pivoted to crypto mining, partnering with MineOne on a Wyoming mining facility in the United States. The facility was ordered to be shut down by the former Biden administration on the basis of it being a national security risk to have a Chinese project located within a mile of a U.S. Air Force base that houses nuclear intercontinental ballistic missiles.