Blockchain Asia | # 17
China's aspiration behind DC/EP/AntChain launches Trusple/Chinese crypto mining companies competing for North America/Kakao's Klaytn partnering with Chinese/VC fund listed security tokens
October 1, 2020
Welcome back to Blockchain Asia. In this issue, we mostly cover Chinese companies.
China warming up to cryptocurrencies?
China’s aspiration behind its CBDC - DC/EP
JD.com helping with DC/EP integration
Ant Group making rapid strides in blockchain-based applications
Chinese crypto mining companies Ebang, MicroBT & Bitmain competing for North America
HashQuark and Klaytn partnering to build out staking ecosystem in China and Korea
Singapore-based tokenization VC fund listing its security tokens on Fusang, an Asian digital securities exchange
Two great video interviews about cryptocurrency in Asia
2020 Shanghai Blockchain Week & Conference Oct. 23-28
China warming up to cryptocurrencies?
Shocking to Chinese, last week, the central government’s TV station CCTV reported that cryptocurrency had outperformed gold and, in particular, pointed out that the prices of Bitcoin and Ether had increased 49% and 169%, respectively, in 2020. At the end of the report, the announcers toned things down by warning the audience of the relatively high risk of investment in cryptocurrency. Cryptocurrency has been a taboo since 2017 when the Chinese regulator banned and shut down exchanges in the country.
China’s aspiration behind CBDC - DC/EP
The latest issue of “China Finance” (17th issue, page 65), a magazine owned by China’s central bank PBoC published a research report about China’s CBDC - DC/EP written by two researchers/professors from Shanghai Fudan University.
The report calls attention to the challenges facing the global monetary system, which manifest primarily in 1) excessive supply of US dollars, which is to blame for negative externalities (a cost suffered by a third party as a consequence of the excessive money supply) to other countries, esp. developing countries; and 2) SWIFT, which is controlled by the U.S.
The report alludes to the argument that China sees the need and has the capability to chip away the monopoly status of U.S. dollar with the help of DC/EP.
JD.com partnering with China’s central bank on DC/EP
China is accelerating the preparation to launch DC/EP. JD Digits, the Fintech arm of JD.com, one of the largest eCommerce companies in China, has entered into a partnership with the central bank to develop mobile apps and other applications for the digital currency.
Others joining JD to help PBoC by integrating DC/EP onto their operational platforms include DiDi, China’s Uber, and video-sharing company Bilibili. The central bank hopes to achieve fast adoption of DC/EP by tapping into the massive user bases of these companies. Read more on PYMNTS
AntChain launching blockchain-based trade platform partnering with international banks
Ant Group unveiled Trusple, a smart contract-based cross-border trade platform for SMEs. Trusple is powered by AntChain, a blockchain consortium the group officially introduced to the public in July (refer to Blockchain Asia #14 for more details of AntChain). Banking partners on Trusple include BNP Paribas, Citibank, Deutsche Bank, Standard Chartered Bank and DBS. Read more on Straits Times
Ebang getting a license in Canada to grow its digital business
A Chinese ASIC chip designer and mining rig manufacturer, Ebang announces that its new subsidiary in Canada has received a Money Service Business License from the Financial Transactions and Reports Analysis Centre of Canada on September 16, 2020. This will allow the company to engage in foreign exchange trading, digital currency transferring and dealing in virtual currencies in Canada. SEC filing here
The Nasdaq-listed company’s revenue dropped 50.6% in the first 6 months of 2020, blaming COVID-19. Ebang was listed in June. For more about Ebang, refer to Blockchain Asia #12.
MicroBT setting up a factory outside of China to supply to the U.S. and partnering with Foundry
On September 25, Shenzhen-based Chinese crypto mining rig maker MicroBT announced the set-up of an offshore factory in Malaysia to supply the U.S. market. By doing so MicroBT can avoid the 25% tariffs imposed by the U.S. due to the trade war between the U.S. and China.
According to the announcement, through the partnership with Foundry, MicroBT will distribute its mining rigs to institutional miners that Foundry serves in North America. New York-based Foundry Digital LLC is a wholly-owned subsidiary of Digital Currency Group.
September 10, MicroBT’s competitor Bitmain announced the partnership between Foundry and Bitmain.
Zuoxing Yang, the founder of MicroBT, used to play a key role in Bitmain’s chip R&D.
HashQuark partnering with Klaytn
HashQuark, a member of HashKey Group in Asia, enters into a strategic partnership with Klaytn, a blockchain developed by Korean internet company Kakao, to jointly build out the staking ecosystem in both China and Korea. Kakao owns KaKaoTalk, KaKaoPay and KaKaoBank. Read more on Medium
Venture capital fund SPiCE listed on the first fully licensed digital securities exchange Fusang in Asia
SPiCE, the first tokenization VC fund in Singapore investing in the tokenization ecosystem, listed its fund’s security tokens on the exchange Fusang. Fusang with operations in Hong Kong, Malaysia and Singapore, has received its securities exchange license from the Labuan Financial Services Authority, Malaysia and TCSP license for its custody business from Hong Kong. Read more on Yahoo Finance
Recommended video interviews
Institutional Bitcoin in Asia, an interview with Dave Chapman of OSL
SFF Green Shoots Series - Cryptocurrency, hosted by Monetary Authority of Singapore
Upcoming Blockchain conference in Shanghai
2020 Shanghai International Blockchain Week hosted by Wanxiang Blockchain Labs, Oct. 23-28. The conference on Oct 27-28 will be in person but will also offer live streaming to those not able to attend in person. More information on its website
Thank you,
~ Coco
In the innovative blockchain/crypto & digital asset ecosystem, Asia is the other side of the coin. Blockchain Asia helps you stay on top of what is going on in the Far East.
Blockchain Asia covers exclusively blockchain and crypto & digital asset developments in Asia, including regulation, investments, new deals and company highlights. Content is selective and curated.
About myself, I am co-founder of Kee Global Advisors. I work with both Western and Asian companies in the past 2 decades. Peking Univerisity and UC Berkeley grad. A bilingual, I enjoy writing “Blockchain Asia” here in English, while blogging on WeChat’s mobile publishing platform in Chinese.
For previous posts, please visit here. Please email insight@keeglobaladvisors.com for any idea or thought. Would love to hear from you!