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HSDT Launches Pacific Backbone to Boost Solana Speed

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR

  • Solana Company has started building a high-speed infrastructure network across the Asia Pacific region.
  • The Pacific Backbone will connect Seoul, Tokyo, Singapore, and Hong Kong with low-latency systems.
  • The network will support Solana staking validation and trading services for institutional clients.
  • HSDT holds about 2.3 million SOL in its corporate treasury.
  • The company plans to launch DeFi tools, liquid staking, and execution services within 18 months.

Solana Company has begun constructing a high-speed infrastructure network across the Asia-Pacific. The project aims to strengthen Solana staking, validation, and trading services. Executives say the buildout prepares SOL for its next “super cycle.”

Pacific Backbone Connects Key Asian Financial Hubs

The initiative, called Pacific Backbone, links Seoul, Tokyo, Singapore, and Hong Kong. It will operate a low-latency cluster for institutional users.

The company said it will start construction immediately. It expects optimization and product launches within 18 months.

Planned services include DeFi tools, liquid staking, and automated market makers. The firm will also provide execution services for finance partners.

Joseph Chee said the expansion prepares Solana for future growth. He described the plan as positioning for the next super cycle.

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The network targets market makers and high-frequency trading firms. It seeks to cut latency and reduce reliance on outside providers.

Solana processes over 3,500 transactions per second. The blockchain supports millions of daily active wallets.

HSDT Expands Treasury Strategy and Regional Operations

HSDT trades on Nasdaq and backs the infrastructure push. Pantera Capital and Summer Capital co-led its $500 million funding round.

Cosmo Jiang said the roadmap will improve regional staking performance. He added it should diversify revenue across Asia.

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Solana Company holds about 2.3 million SOL in treasury. The stake is worth more than $180 million at current prices.

The firm partnered with Anchorage Digital and Kamino on a lending venture. The venture lets institutions borrow against natively staked SOL.

Public companies have maintained steady SOL staking levels. Data shows treasury valuations have fallen to record lows.

HSDT shares fell over 8% in Monday trading. The stock has dropped more than 90% since September.

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The buildout focuses on compliant infrastructure for regulated Asian markets with strict standards. Engineers will deploy state-of-the-art hardware across each data center location in the region.

The cluster will support validators, staking pools, and trading desks across major hubs. Management said the network will capture more stakeholder value internally for the company.

The company continues operating its neurotech and medical device units alongside blockchain initiatives. It rebranded from Helius Medical Technologies in September to pursue a Solana strategy.

Shares traded at $1.76 during the latest session on the Nasdaq exchange. Other crypto stocks also posted losses on Monday during early market hours.

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Solana declined nearly 6% during the past 24 hours. Bitcoin also fell more than 4% over the same period.

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Crypto World

South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

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South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

South Korea has ordered all crypto exchanges to reconcile their internal ledgers with actual asset holdings every five minutes after an inspection uncovered weaknesses in internal controls.

The directive was announced on Monday by the Financial Services Commission (FSC) after a meeting with top crypto exchanges and the Digital Asset Exchange Alliance (DAXA), during which they discussed the findings of an emergency inspection triggered by the Bithumb payout incident.

The inspection found that three of the country’s five major exchanges were reconciling balances only once every 24 hours, limiting their ability to respond quickly to discrepancies. Systems designed to halt trading during major mismatches were also found to be insufficient, raising concerns about how exchanges would handle large-scale errors.

In February, Bithumb mistakenly distributed 620,000 Bitcoin (BTC) to 249 users during a promotional event. The exchange later announced that it recovered 99.7% of the funds the same day. The remaining 0.3%, 1,788 BTC that had already been sold, was covered using company reserves.

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Related: Bithumb seeks to reappoint CEO despite recent controversies: Report

South Korea mandates five-minute asset checks

Under the new measures, exchanges must implement automated ledger-to-wallet reconciliation systems operating on a five-minute cycle. They will also be required to introduce defined criteria for triggering automatic transaction halts in the event of significant discrepancies.

Beyond reconciliation, regulators are pushing for sweeping changes to internal operations. High-risk processes like promotional payouts will require stronger oversight, including third-party cross-checks and multi-level approval systems. Exchanges will also need to separate high-risk accounts and implement automated verification tools for payments.

Top Korean crypto exchanges. Source: CoinGecko

Furthermore, external audits will shift from quarterly to monthly, while disclosures will expand to include detailed asset balances by wallet and ledger.

“The financial authorities and the DAXA plan to complete the rule changes needed to implement the improvement measures within April this year,” the FSC wrote.

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Related: South Korean brokerage Korea Investment & Securities eyes Coinone stake: Report

Bithumb delays IPO to post-2028

Last week, Bithumb announced it is now targeting an IPO after 2028, marking another delay from its earlier 2025 plans as it works through restructuring and regulatory pressure. The exchange said it will focus on strengthening accounting policies and internal controls through 2027, following an advisory agreement with Samjong KPMG.

Meanwhile, Naver Financial has also delayed its planned share swap with Dunamu by about three months, now targeting a shareholder vote on Aug. 18 and completion by Sept. 30.

Magazine: South Korea gets rich from crypto… North Korea gets weapons

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