What The FinTech : Weekly Update 9 May 2021

Happy Sunday and Welcome back to What The FinTech, your regular FinTech & Innovation Newsletter focusing on Hong Kong & Asia ! Here are the selection and the top headlines for this week.

To stay fully updated with all the latest HK & Asia FinTech & banking news, insights & intelligence impacting the sector - click on the button "subscribe" next to the Title.

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Videos! ??

The next episode of DBS Xchange with our CEO, Sebastian Paredes, will be released on Tuesday this week, stay tuned !

Check out the previous videos here: on What The FinTech, Instagram or YouTub

WTF Infographic 1o1 ???:

DBS Women In Tech:

After a very successful event late 2020, we are bringing back the next DBS Women in Tech virtual hiring event in June, 2021! Looking forward to breaking all records and ceilings ! Apply here!

Lastest articles:

DBS, JPMorgan and Temasek to Create Blockchain-Based Payments Joint Venture

The platform, to be dubbed “Partior,” will seek to disrupt the traditional payments model and the common pain points that come with it.

Joining the Dots in FinTech & Payment

Eli Shoshani, Head Of APAC at Bottomline Technologies, and I discussed the huge innovation happening in payments across Asia and the likelihood of a pan-regional payment system emerging.

Read the full article here: https://lnkd.in/gYwjhhA

And for further insights, you can watch us in Fintech Finance | Fintech & Financial News Virtual Arena: https://lnkd.in/gedhAsf

What was the FinTech this week in: ??

Crypto - Digital Assets - DeFi

Central Bank-Issued Digital Coins Seen Co-Existing With Bitcoin 

Cryptocurrencies like Bitcoin and Ether will co-exist “for a while” with more-restrictive digital coins such as the one issued by China’s central bank, according to Changpeng Zhao, chief executive officer of Binance. the world’s largest Bitcoin exchange. Zhao noted that digital assets issued by central banks will be different than public coins in many ways - they will not offer the same freedom of use and will not have a supply cap in place longer-term assets in the traditional private market space. Bitcoin and Ether have hit all-time highs this year as institutional investors and corporations buy cryptocurrencies to add to their balance sheets. Ether hit a record $3,339 Monday. While Bitcoin is used only for transferring digital value, Ether supports the Ethereum blockchain on which more types of transactions are possible. User demand for Ether to buy assets such as non-fungible tokens also could be driving prices higher, Zhao said.

Goldman Sachs invests in cryptocurrency and blockchain data provider Coin Metrics

Goldman Sachs has led a $15 million Series B funding round for Coin Metrics, a cryptocurrency and blockchain data provider to institutional clients. Coin Metrics provides network data, market data, indexes and network risk technology to institutions offering cryptoassets. Founded in 2017, the firm has seen its index offering adopted by some of the largest names in the cryptoasset ecosystem, including Fidelity Investments, Osprey Funds, and BlockFi. Several new products have also recently been added, including a network risk management offering and a universal block explorer. The new financing will be used for expansion in Europe and Asia, and for product innovation.

 EBay says open to accepting to cryptocurrencies in future, exploring NFTs

EBay Inc has said it is open to the possibility of accepting cryptocurrency as a form of payment in the future and is looking at ways to get non-fungible tokens (NFTs) on its platform. While there are no immediate plans, EBay is keeping an eye on cryptocurrency developments. A growing number of companies have begun to accept virtual currencies as a form of payment. Tesla Inc is already accepting bitcoin as payment for its electric cars, while payments firm PayPal last year started allowing customers to buy, sell and hold cryptocurrencies using its online wallets. EBay is also looking at a "number of ways" to get into the NFT space, including exploring opportunities on how it can enable it (NFTs) on eBay in an easy way. 

CME Group Announces Launch of Micro Bitcoin Futures 

Derivatives exchange CME Group has launched Micro Bitcoin futures, which are one-tenth the size of one bitcoin. CME Micro Bitcoin futures are cash-settled, based on the CME CF Bitcoin Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of bitcoin. Micro Bitcoin futures are listed on and subject to the rules of CME. The smaller contract size enables traders of all sizes – from institutions to active retail traders – to get exposure to bitcoin prices, or hedge their spot bitcoin positions. 

Deutsche B?rse and Commerzbank to build digital asset marketplace

Deutsche B?rse and Commerzbank have invested in fintech spinoff 360X with the aim of building a blockchain-based digital marketplace for digital asset classes in art and real estate. Deutsche B?rse and Commerzbank will work with fintech firm 360X to build a digital asset marketplace with the first reference transaction (minimum viable product) for each tokenized asset class planned for later this year. Under the plans, tokenised real assets will be mapped onto a blockchain to facilitate access for investors and allow the fractional trading in the underlying asset. Germany is becoming a powerful contender in the digital asset race, with its regulator BaFin inviting banks and startups to apply for special licenses to hold cryptocurrency for interested clients. 

This newsletter is made possible thanks to MAZECARE

Mazecare is a Healthcare IT Products and Services Company and builds a robust, feature rich suite of products to deliver significant value to the stakeholders of the healthcare industry. Mazecare aims at empowering hospitals, medical networks & groups, insurers, TPAs, clinics, and any other health providers, with state-of-the-art management systems, patient portals & customized applications. Mazecare aspires to build intuitive user interfaces and powerful backend systems, designed with technical excellency.

HONG KONG

GBA Wealth Connect scheme becomes effective on June 5

Chinese regulators have released the long-awaited rules for Wealth Management Connect for the Greater Bay Area, bringing the cross-border investment scheme a step closer to realization. A combined quota of 150 billion yuan (US$23 billion) has been set for the southbound and northbound movements of funds under the pilot programme.

The draft guidelines, detailing the qualifications for products, investors and financial institutions who want to join the scheme, were issued for comments last night by the People’s Bank of China, China Banking and Insurance Regulatory Commission, and China Securities Regulatory Commission. The rules will take effect in 30 days.

UBS partners with ‘Knowledge-as-a-service’ platform Lynk to boost investment process

UBS has integrated “knowledge-as-a-service” platform Lynk into its investment process. The collaboration will provide UBS’ research analysts and institutional clients, including hedge funds, private equity firms and sovereign wealth funds, with access to Lynk’s database of 840,000 experts around the world. Lynk’s technology uses machine learning algorithms to match clients with experts in its database. Lynk’s experts cover a wide range of industries and sectors and include C-suite executives, independent consultants, lawyers, engineers, financial analysts and scientists. The platform also has collaboration tools that allow teams to automatically transcribe question-and-answer sessions, search transcripts and share notes. During the pandemic, Lynk’s clients in the investment sector have used it to perform research and due diligence on potential investments remotely. 

SINGAPORE

More Singapore companies push into the NFT space

Singapore-based firms are jumping on the NFT bandwagon. At Singapore-based e-boutique republiqe, customers purchase a digital outfit and then upload one of their photos, following which they are "dressed" in the digital garment just purchased. Soon after, republiqe would email a digitally-composed picture of customers wearing the garment perfectly which they can then post online on Instagram, Facebook. Launched in August 2020, republiqe has sold over 500 garments. NFTs, a digital collectible whose authenticity and provenance can be verified by blockchain technology, is four times more likely to be collected by men than women. republiqe's latest offerings thus include Star Wars accessories such as Stormtrooper bag and boots. Mighty Jaxx, a designer toy company, auctioned its first NFT on the platform OpenSea.io in April 2021. The winning bidder won not just the physical toy called The Huntress' Gaze, but also its short digital animation. 

MAS commits S$42m to tech-adoption grants for financial sector

The Monetary Authority of Singapore (MAS) will commit S$42 million for a new regulatory technology (RegTech) grant scheme, while enhancing the Digital Acceleration Grant (DAG) scheme. The RegTech grant scheme aims to promote the adoption and integration of technology solutions in the risk management and compliance functions of financial institutions. It is available to Singapore-based financial institutions. The grant scheme will cover two tracks. Under the pilot track, financial institutions can seek funding to pilot potential RegTech solutions before embarking on full-scale integration of the product into its operating environment. Funding for this track will be capped at S$75,000. Through the production level project track, financial institutions can seek funding to develop larger scale customised projects that can be fully integrated into the financial institutions' systems. Funding for such projects will be capped at S$300,000. Additional S$30million has been committed to the DAG scheme, bringing the total up to S$65million. 

CGS-CIMB launches S$150m commercial paper in digital securities on iSTOX

CGS-CIMB Securities (Singapore) has launched a S$150 million multi-tranche commercial paper entirely in digital securities on iSTOX, the digital securities platform backed by Singapore Exchange (SGX), as the financial services provider looks to widen its investor base. Commercial papers are a form of unsecured, short-term debt instrument. In this case, the money raised will be used to fund CGS-CIMB's operating expenses and near-term obligations. The first tranche of S$10 million was listed and completed in April, with a minimum ticket size of S$200,000. The listing of the digital commercial paper on iSTOX's secondary exchange gives investors an option to cash out ahead of maturity. Traditional commercial papers, on the other hand, are not generally traded because of their short tenure. The options for cashing out ahead of maturity are therefore more limited than longer-term assets in the traditional private market space. 

Fasanara Capital to invest S$50m in Validus to boost SME lending in Singapore

Singapore-based fintech Validus has attracted over S$50 million from London-based institutional asset manager Fasanara Capital to boost small and medium-sized enterprise (SME) lending for underserved and unbanked SMEs in Singapore. This includes a S$20 million investment in SME financing on Validus' marketplace and S$30 million in new funds towards Validus' Enterprise Financing Scheme. These funds are earmarked for Singaporean SMEs under the government-assisted financing scheme, to provide cashflow support and growth capital for those impacted by the pandemic. Fasanara and Validus are also exploring similar financing solutions in support of government loan schemes in markets across South-east Asia, where Validus has a presence in. Validus recently reported its strongest quarter to date with total loan disbursements exceeding S$150 million. Since 2015, Validus has disbursed over S$850 million in SME loans.

Singapore-based gold miner Anchor Resources expands into fintech business

Gold miner Anchor Resources will be entering the fintech sector following a name change to VCPlus Limited and a joint venture (JV) agreement with CapitalX Global and five investors. The JV company, Custody Plus, will provide custodian services for digital assets and will have an issued and paid-up share capital of S$1 million. VCPlus will have controlling interest of 55 per cent, CapitalX 35 per cent interest and the investors an aggerate of 10 per cent interest. Custody Plus will apply for all the necessary licences including the Capital Market Services licence issued by the Monetary Authority of Singapore. In the partnership with CapitalX, Custody Plus is looking to tap CapitalX's expertise in fintech regulation, licencing, as well as the adoption of fintech strategies and technology, given that it is the controlling shareholder of digital asset exchange platform operator ECXX Global.

Adyen Singapore now licensed under Payment Services Act as a Major Payments Institution

Payments firm Adyen’s Singapore entity, Adyen Singapore Pte Ltd, has received approval from the Monetary Authority of Singapore (MAS) to carry out merchant acquisition services under the Payment Services Act 2019 (PSA). Adyen Singapore's license as a Major Payment Institution under the PSA has been expanded to include merchant acquisition and domestic money transfer services, on top of the previously licensed activity of cross-border money transfer service. Adyen Singapore is the first global payments provider to be licensed for the newly regulated activity of merchant acquisition service under the PSA. 

ASIA

Retailer Rakuten Beats Japanese Lenders at Digital Bank Game

Rakuten Group Inc. is emerging as the first real digital contender to Japan’s traditional lenders, using its Amazon.com-like e-commerce dominance to steer users to its online bank. New digital bank accounts at the internet conglomerate that’s better known for its online shopping services expanded by 20% last year and recently topped 10 million, the most among the country’s online lenders. Deposits grew by about 50% over the same period to more than 5 trillion yen ($46 billion), putting it on par with Japan’s mid-sized regional banks. Rakuten allows its more than 100 million members to collect loyalty points by using a swath of services including its bank, which can then be spent like money through its array of businesses from its travel agency to its movie and TV show app. After a slow start, Japanese consumers are beginning to embrace online transactions that saw a surge in demand in many countries during the pandemic. 

Indonesian robo-advisor Bibit bags US$65 Million in funding round

Bibit.id, a digital investment app in Indonesia, has raised US$65 million in a funding round led by Sequoia Capital India. The round was joined by Prosus Ventures, Tencent and Harvard Management Company as well as existing investors including AC Ventures and East Ventures. Launched in early 2019, Bibit is a mutual fund robo-advisory that enables investors to build portfolios according to their risk pro?les and investment goals in a simple and optimal way. Bibit’s user demographic comprises mainly of millennials and ?rst-time investors. Bibit will use the funds to launch new products, engage in tech development, acquire talent, and increase ?nancial education and awareness to further build its platform.  

Jobs Listings ??

This Job Listings is made possible thanks to Unity Partners

Trader CRYPTO (Fresh grad to 5 years of experience)

The role

• Research trading ideas and develop new high-/med-frequency crypto trading strategies
• Clean and transform trading-related data, perform back-testing and conduct statistical analyses
• Explore useful data sets and assist in data feeds setup
• Improve existing trade execution, risk management, strategy performance and portfolio management methodology
• Automate trading tasks and assist in automated trading operation

Vice President - Market Risk & Product Control (crypto)

The role

You will be in charge of the Market Risk Capability and Controls framework of the firm. You will also be a key stakeholder in the investment decision process and will be consulted for Risk related matters by the Executive members. Finally, you will be involved in the Financial operations of the firms (Treasury, reporting, Accounting, Audit, etc.)

Senior Quantitative Developer (Crypto - Fintech)

The role

You will be a key driver of the Trading teams to build, enhance trading solutions and strategies. You will be responsible for the creation, testing, production and post production of quantitative models for their trading portfolios.

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I hope you find the information provided in this newsletter to be informative and helpful. 

To ensure that I am addressing the topics that are most important to you, I would welcome your feedback and suggestions. 

Follow me on Twitter @medhy_souidi to get the annotated edition of this newsletter on Monday or Tuesday. Plus I tweet most of what makes it into the newsletter.

Medhy

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