Connect with us

Crypto World

Hong Kong is trying to build up its crypto regulations: State of Crypto

Published

on

Hong Kong is trying to build up its crypto regulations: State of Crypto

Consensus Hong Kong wrapped up with a bang as policymakers announced new initiatives to grow the digital assets sector.

You’re reading State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. Click here to sign up for future editions.

The narrative

Policymakers at Consensus Hong Kong announced a slew of initiatives aimed at strengthening the local digital asset ecosystem.

Why it matters

Philosophically speaking, the question of why we still care about this industry remains top of mind. Consensus showed that despite the sometimes ridiculous projects and unachievable hype cycles, companies still have a genuine use for the technology.

Advertisement

Breaking it down

Hong Kong’s regulators are trying to encourage growth in the local digital asset ecosystem, unveiling a framework for perpetual contracts and saying that stablecoin licenses will be announced in the coming month.

“That certainty of direction gives a lot of companies confidence to invest in Hong Kong and to build further,” said Jason Atkins, the chief commercial officer of crypto trading firm Auros.

While the Special Administrative Region of China is not yet close to approving all applicants and activities, the fact that regulators like the Securities & Futures Commission and the Hong Kong Monetary Authority are willing to engage and adapt their approaches to digital assets is still significant, he told CoinDesk. They’re asking companies what they need to do to encourage investment, he said.

“We’ve gone into the SFC a few times, spoken with the HKMA on think tanks and panels and groups where they literally are just trying to understand how our businesses operate and what we need to invest even more into the city, which is really positive,” he said.

Advertisement

The regulators have been positively engaged, trying to discern what companies need from them to operate in the region. This includes asking whether certain regulations need to be adjusted to address market needs, he said.

“So they think about ways they can loosen those or lighten them up for certain types of investor classes,” he said.

This fits with a broader trend of more traditional institutions wanting to get into crypto — or at least blockchain.

Multiple panelists, representing companies like Franklin Templeton and Swift, said they were using or exploring blockchain technology to streamline their operations. It’s reminiscent of the 2018 “blockchain, not Bitcoin” era, but these entities are actually executing, rather than just announcing pilots.

Advertisement

That an increasing number of traditional entities are moving into blockchain may be the story of 2026, said Edge & Node CEO Rodrigo Coelho.

Companies are “rushing to figure this out,” he told CoinDesk. “Companies are seeking out consulting and expertise.”

Shawn Chan, of Singapore Gulf Bank, described these types of rails as being superior for transferring value.

While international regulatory hurdles need to be worked out, he estimated that companies will increasingly adopt blockchain tooling within the next decade.

Advertisement

This week

  • Congress and federal regulators are not holding any hearings tied to crypto this week.

If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at [email protected] or find me on Bluesky @nikhileshde.bsky.social.

You can also join the group conversation on Telegram.

See ya’ll next week!

Advertisement

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto World

Alibaba joins MetaComp’s $35M stablecoin fundraise

Published

on

Crypto Breaking News

Singapore-based fintech MetaComp has closed a Pre-A+ funding round backed by Alibaba, lifting its cumulative total to US$35 million across two rounds in just three months, according to the company’s announcement. The latest round also brought in European early-stage investor Spark Venture, with Beijing-based 100Summit Partners serving as exclusive financial adviser. The capital infusion is aimed at accelerating MetaComp’s StableX Network, a cross-border payments platform designed to weave together fiat rails and stablecoin infrastructure for regulated institutions and high-net-worth clients. MetaComp previously disclosed a US$22 million Pre-A round in December 2025, signaling robust early-stage interest in regulated web2.5 payments infrastructure across Asia.

Key takeaways

  • MetaComp’s Pre-A+ round, anchored by Alibaba, raises the company’s total funding to US$35 million in three months, underscoring strong demand for regulated cross-border stablecoin infrastructure.
  • The round introduces Spark Venture from Europe as an investor and names 100Summit Partners (Beijing) as exclusive financial adviser, highlighting cross-regional interest.
  • MetaComp previously closed a US$22 million Pre-A round in December 2025 with investors including Eastern Bell Capital, Noah, Sky9 Capital, Freshwave Fund and Beingboom Capital, illustrating sustained backing for hybrid fiat-stablecoin payments.
  • The company intends to scale the StableX Network to connect regulated financial institutions, stablecoin issuers and partners across Asia, the Middle East, Africa and Latin America for real-time cross-border settlement.
  • Industry context points to ongoing investor appetite for regulated stablecoin infrastructure in Asia, with forecasts suggesting the stablecoin market could reach around US$2 trillion by 2028.

Sentiment: Neutral

Market context: The funding activity aligns with a broader push to build regulated stablecoin rails that complement traditional banking systems. While regulators in some jurisdictions pursue stricter issuance controls, the Alibaba-backed round signals continued strategic interest in cross-border settlement infrastructure. The market backdrop includes forecasts that place stablecoins on a trajectory toward multi-trillion-dollar scales in the coming years, underscoring a shift toward institutional-grade crypto rails alongside established fiat systems.

Why it matters

MetaComp’s expansion of the StableX Network sits at the intersection of conventional finance and tokenized wealth management. By offering a hybrid model that merges fiat rails with stablecoin networks, the platform aims to provide faster, auditable cross-border settlements for banks, wealth managers and corporate clients. The vision is to enable real-time settlement that adheres to regulatory standards, a critical requirement for institutions seeking to incorporate digital assets into traditional portfolios without sacrificing compliance or risk controls.

The leadership’s explicit framing of a “Web2.5” architecture — where fiat rails and stablecoins operate as a single, interoperable ecosystem — underscores a broader sector trend toward hybrid solutions that deliver both speed and governance. If MetaComp can successfully onboard a network of banks, regulators and stablecoin issuers across multiple regions, the company could help accelerate the adoption of regulated stablecoins for international payments and cross-border trade. The mix of investors—Alibaba alongside European and Asian advisers—signals confidence in MetaComp’s ability to navigate the regulatory and operational complexities inherent in multi-jurisdiction collaborations.

Advertisement

Alibaba’s involvement comes at a sensitive juncture for stablecoins issued outside mainland China. The company has previously explored deposit-token technology for overseas transactions even as authorities tighten issuance rules within the country. The contrast between policy posture and private-sector experimentation highlights a nuanced landscape where international collaborations may unlock regulated cross-border flows, even as domestic issuance remains constrained. The broader market context, including forecasts of substantial growth for stablecoins, suggests a potential win for platforms that can demonstrate robust compliance, interoperability and measurable settlement improvements.

MetaComp’s strategic direction also rests on a global expansion blueprint. By extending the StableX Network to Asia, the Middle East, Africa and Latin America, the company aims to capture markets with rising demand for compliant, real-time settlement services. The model envisions a hub-and-spoke arrangement, linking financial institutions with stablecoin issuers and technology partners to streamline remittances, supplier payments and institutional treasury operations. Such an approach could address persistent inefficiencies in traditional cross-border rails while offering a path for asset managers and financial institutions to participate more directly in tokenized wealth solutions.

What to watch next

  • Regulatory updates in target regions as MetaComp expands the StableX Network and pilots cross-border settlement solutions.
  • New partnerships with banks, stablecoin issuers and wealth-management platforms to demonstrate live use cases and scale pilots.
  • Possible follow-on funding rounds or strategic investments, including potential continued support from Alibaba and additional strategic investors.
  • Public milestones on onboarding institutions and the rollout timeline for expansion into Asia, the Middle East, Africa and Latin America.

Sources & verification

  • MetaComp press release: Alibaba-backed Pre-A+ round, total US$35 million in three months (PR Newswire)
  • MetaComp press release: December 2025 Pre-A round totaling US$22 million, with investors including Eastern Bell Capital, Noah, Sky9 Capital, Freshwave Fund and Beingboom Capital (PR Newswire)
  • Summary of MetaComp’s expansion and regional focus (MetaComp page) (MetaComp)
  • Stablecoin market projections and regulatory context cited by industry coverage (Standard Chartered projection; referenced via Cointelegraph) (Cointelegraph — Stablecoin forecast)
  • Regulatory stance on stablecoins and issuance (China crackdown context referenced in coverage) (Cointelegraph — Alibaba and stablecoins in China)

MetaComp expands StableX Network to accelerate cross-border finance

Singapore-based MetaComp announced a new Pre-A+ funding round led by Alibaba, raising the cumulative total to US$35 million across two rounds in three months. The round also features Spark Venture, a European early-stage investor, with 100Summit Partners (Beijing) acting as exclusive financial adviser. The capital infusion follows MetaComp’s earlier December 2025 disclosure of a US$22 million Pre-A round, which included a roster of notable investors such as Eastern Bell Capital, Noah, Sky9 Capital, Freshwave Fund and Beingboom Capital. The company said the funds will be directed at expanding the StableX Network, a platform designed to harmonize regulated financial institutions, stablecoin issuers and other partners through blockchain-based infrastructure.

At the heart of MetaComp’s strategy is a belief in a Web2.5 architecture where traditional fiat rails and stablecoin networks function together as a single, interoperable system. Tin Pei Ling, MetaComp’s co-president, underscored this vision, saying, “MetaComp was built on a single conviction: that the future of cross-border finance is neither purely traditional nor purely digital — it’s the integrated Web2.5 architecture where fiat rails and stablecoin networks operate as one.” The capital infusion is expected to accelerate the scaling of StableX Network beyond its current footprint into new markets and partnerships that can support real-time settlement with compliance at the forefront.

MetaComp’s expansion plan targets Asia, the Middle East, Africa and Latin America, areas where regulators are increasingly receptive to cross-border settlement innovations that preserve safety and oversight while delivering faster settlement times. The network aims to create a bridge between regulated financial institutions and stablecoin issuers, enabling institutions to access tokenized wealth products and stablecoin-based liquidity tools within a compliant framework. The move aligns with a broader industry trend toward building scalable, regulator-friendly infrastructure that can support institutional participation in the digital asset ecosystem.

Advertisement

The partnership profile around this round—Alibaba alongside European and Chinese advisers—reflects a cross-border approach to building out the infrastructure that could underpin more efficient remittances, cross-border corporate payments and wealth-management solutions in the years ahead. While regulatory policies differ across jurisdictions, the strategic emphasis on compliance and interoperability suggests that MetaComp intends to pursue a steady, institution-focused growth path rather than a rapid, consumer-facing rollout.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

Source link

Advertisement
Continue Reading

Crypto World

BlackRock Launches iShares Staked Ethereum Trust With 82% Rewards

Published

on

The new BlackRock Ethereum staking ETF has shaken the markets up, leading to ETH USD surging +2.8% on the back of the news

Investors have paid fees to hold Ethereum in ETFs for years while leaving the network’s native yield on the table, and that inefficiency disappeared this morning when BlackRock turned Ethereum into a productive asset for Wall Street by entering the staking race.

For the first time in US market history, the world’s largest asset manager is offering a product that captures both price appreciation and the network’s validator rewards. Now investors don’t have to choose between holding and earning, both are on the table.

This news comes as the Ethereum price surged +2.8% overnight and is currently trading back above $2,100 as we head into the weekend.

The total crypto market cap is also up, climbing +2% over the past 24 hours and reclaiming the crucial $2.5 trillion level in the process.

Advertisement
The new BlackRock Ethereum staking ETF has shaken the markets up, leading to ETH USD surging +2.8% on the back of the news
SOURCE: CoinGecko

BlackRock Enters the Staking Race: ETHB Launches on Nasdaq

BlackRock officially launched the iShares Staked Ethereum Trust (ETHB) on the Nasdaq exchange today. The product is distinct from the firm’s existing iShares Ethereum Trust (ETHA), which holds over $6.5Bn in assets but serves strictly as a passive price tracker.

This new vehicle intends to stake between 70% and 95% of its ether holdings to generate yield. However, the fee structure is aggressive. While the standard sponsor fee is set at 0.25%, BlackRock has implemented a promotional waiver that reduces the cost to 0.12%.

This rate applies to the first $2.5Bn in Net Asset Value (NAV) or for the first 12 months of trading, whichever threshold is breached first.

Jessica Tan, Head of Americas for iShares, positioned the launch as a direct response to client demand for products that reflect the full economic reality of the asset class.

Advertisement

The trust joins a BlackRock digital asset platform that now oversees approximately $130Bn in assets, cementing the firm’s dominance in the digital asset ETF space.

DISCOVER: Next Crypto to Explode in 2026

The BlackRock Ethereum Institutional Pivot: Yield is No Longer Optional

This launch signals that institutional adoption has moved beyond simple exposure. Until recently, regulatory friction prevented US issuers from including staking mechanics in exchange-traded products, forcing investors to choose between the safety of an ETF and the yield of direct ownership. That choice is no longer binary.

Advertisement

The arrival of ETHB suggests that regulators are increasingly comfortable with the technical nuances of proof-of-stake blockchains. Recent coordination between the SEC and CFTC has likely smoothed the path for these more complex structured products.

For allocators, the implications are mathematical: holding ample ETH without staking it is now a decision to accept underperformance relative to the benchmark.

Competitors like Fidelity and Grayscale are now on the defensive. With BlackRock successfully packaging staking rewards into a 0.12% fee product, the pressure to upgrade existing spot ETFs into staking-enabled vehicles will be immediate. The market standard for an Ethereum product has just been raised.

Supply Dynamics: The Scarcity Squeeze for ETH USD

Advertisement
SOURCE: TradingView

The launch of ETHB introduces a new demand sink for the Ethereum network. Unlike spot ETFs, which simply hold coins in cold storage, staking ETFs lock those coins into the validator network. This reduces the actively circulating supply available for trading.

If capital rotates aggressively from the BlackRock Ethereum ETHA product to its new ETHB staking fund, or if new money enters specifically for the yield, the percentage of ETH locked in staking contracts will rise.

This aligns with broader market trends where Ethereum’s scarcity index is already turning positive. A successful ETHB launch accelerates this dynamic by institutionalizing the lock-up process.

With ETH USD facing immediate resistance at $2,150, the launch of BlackRock’s new Ethereum staking ETF could send it surging straight to the next target at around $2,400.

EXPLORE: Best Crypto Presales to Buy in 2026

Advertisement

The post BlackRock Launches iShares Staked Ethereum Trust With 82% Rewards appeared first on Cryptonews.

Source link

Continue Reading

Crypto World

Vitalik Buterin Questions AI Strategy of Group He Funded

Published

on

Vitalik Buterin Questions AI Strategy of Group He Funded

Ethereum co-founder Vitalik Buterin said Friday that he is no longer closely aligned with the Future of Life Institute, a group that received SHIB tokens from him in 2021. 

Buterin said the institute originally pitched him a broad roadmap for reducing existential risks, including those tied to artificial intelligence, biology and nuclear threats, along with wider pro-peace and pro-epistemics initiatives. He said that helped motivate the Shiba Inu (SHIB) donation.

Buterin said the institute later moved toward cultural and political advocacy around AI risks, an approach he described as materially different from the strategy outlined when he donated.

“My worry is that large-scale coordinated political action with big money pools is a thing that can easily lead to unintended outcomes, cause backlashes, and solve problems in a way that is both authoritarian and fragile, even if it was not originally intended that way,” he wrote.

Advertisement

Buterin expresses disagreements to FLI’s current approach

The FLI describes its mission as reducing extreme risks and steering transformative technologies to benefit humanity.

“We need policies to help ensure that AI development improves lives everywhere – rather than merely boosts corporate profits,” the organization states on its website. 

Source: FLI

However, Buterin said some of the group’s proposals focus on placing safeguards in biosynthesis devices and AI models so that they refuse to produce harmful outputs.

“I view this as a very fragile solution: there are many ways to jailbreak, fine-tune or otherwise get around such restrictions,” he added. 

Cointelegraph reached out to the FLI for comments, but had not received a response by publication.

Advertisement

Related: Vitalik says ‘at present’ his donations yield better gains than investments

FLI cashed out $500 million from the SHIB donation

In 2021, Buterin received large amounts of SHIB tokens and other dog-themed tokens as developers attempted to use his name as a marketing tactic. He later allocated some of those tokens to charitable causes.