Latest news with #AnimocaBrands
South China Morning Post
4 days ago
- Business
- South China Morning Post
Stablecoin law reflects unique position of Hong Kong
Hong Kong made a forward-looking move on digital assets last month by passing a landmark law to regulate the market for stablecoins. Such a regime, which is well ahead of many jurisdictions in Asia and North America, will help bolster public confidence in this popular and fast-growing financial sector. It showcases the city's crucial role in experimenting and rolling out financial schemes separate from the mainland under 'one country, two systems'. Advertisement A stablecoin is so called because it is pegged to a fiat currency such as the US dollar or Hong Kong dollar. Worldwide, stablecoin trading volume hit US$27.6 trillion last year, surpassing the combined volume of Visa and Mastercard transactions over the same period. Hong Kong has stolen a march on this huge and rapidly growing market. Under the regulatory regime, stablecoin issuers will be licensed by the Hong Kong Monetary Authority (HKMA), and only they will be able to advertise their digital coins. Details of the regulatory regime, such as reserve requirements, client asset segregation, risk management and disclosure still have to be worked out. At least three firms – Standard Chartered, Hong Kong Telecom and Animoca Brands – plan to set up a joint venture to issue a Hong Kong dollar-backed stablecoin under licence from the HKMA. They will be able to sell the digital asset, and the public may use them for retail transactions and trade them on virtual-asset exchanges that may offer investible assets. So far, the city has approved 10 such exchanges under the Securities and Futures Commission. Unlike a central bank digital currency (CBDC), which has regulated uses in the form of digital yuan on the mainland and e-HKD in Hong Kong, stablecoins are issued by qualified commercial concerns. And unlike decentralised block-chained cryptocurrencies such as bitcoin, both forms of CBDCs and stablecoins are highly regulated and therefore inherently deter money laundering. Advertisement With proper regulations in place, digital assets can form and expand as part of the city's highly efficient and diversified trade and financial ecosystems. While some industry players have voiced concerns about potentially onerous regulations, there needs to be a balance between being pro-market and protective of the public. Hong Kong regulators are well placed to achieve both.
Yahoo
14-05-2025
- Business
- Yahoo
Exclusive: Animoca's Yat Siu says bank-backed stablecoins will drive mass adoption
At TOKEN2049, Yat Siu, co-founder and chairman of Animoca Brands, joined TheStreet Roundtable host Scott Melker to talk about the future of stablecoins — and why Hong Kong's new approach could reshape adoption around the world. 'We're also moving into space. Part of it is Animoca Brands becoming more institutional. We have a joint venture with Standard Chartered... and HKT, the largest telco in the region, to launch a stablecoin,' Siu said. The total stablecoin market capitalization stands at $244.99 billion, down 0.5% in the last 24 hours. Daily trading volume reached $78.05 billion, reflecting steady market activity. Stablecoins remain a key pillar of crypto liquidity and cross-border transactions. What makes this stablecoin unique? It's licensed by the Hong Kong Monetary Authority, which Siu noted 'probably makes it the very first central bank issued.' Siu explained the global importance of Hong Kong's role. 'Hong Kong has always been a financial gateway for China, both in and out... For instance, if you look at what we call Dim Sum bonds... Hong Kong basically does about two plus trillion dollars of renminbi a day.' He added, 'A stablecoin issued from there is... a way to basically make Hong Kong remain a relevant financial centre.' But it's also about trust. While praising leaders like Tether and Circle, Siu said mass adoption will come when everyday users see banks behind the coins. 'Having the person who doesn't know much about crypto in the first place say, okay, I'm using a token that is backed by the dollar. Can I trust it? If it comes from a bank... your regular user... they're like, oh, okay, I can trust the bank.' Melker pointed out that in the U.S., lawmakers may soon require stablecoin issuers to be banks. 'There's actually been some fear... legislation could specify that you have to be a bank to issue a stablecoin... we are a hundred percent heading to a future where we have Goldman Coin and BNY Mellon Coin and JP Morgan coin, which actually exists.' Siu agreed and said geopolitics is a major factor. 'The seventh largest T-bill buyer last year I think was Tether... If you think about dollar hegemonic money... how do you make sure it's the currency of choice? I think stablecoins is the answer.' Importantly, he clarified. 'It's not a CBDC... The Hong dollar is actually backed by the US dollar... so in a way, the Hong Kong dollar was probably the OG stablecoin.' U.S. Treasury Secretary Scott Bessent criticized the Senate on Thursday for rejecting the GENIUS Act, a proposed stablecoin regulation bill, calling it a 'missed opportunity' for the U.S. to lead in digital asset innovation. 'For stablecoins and other digital assets to thrive globally, the world needs American leadership,' Bessent posted on X. 'The Senate missed an opportunity to provide that leadership today by failing to advance the GENIUS Act.' He described the bill as a 'once-in-a-generation opportunity' to bolster dollar dominance and strengthen U.S. influence in financial technology, warning that without federal regulation, innovation could shift offshore. The Senate voted 49-48 to block the bill, with Republicans Josh Hawley and Rand Paul siding with Democrats amid disputes over bill language and oversight provisions. Lawmakers expressed concern over anti-money laundering terms and foreign issuer restrictions. Tensions were heightened by President Trump's deepening ties to crypto, including memecoin launches, high-priced fundraisers, and backing a DeFi project with its own stablecoin. Bessent concluded, 'Senators who voted to stonewall U.S. ingenuity today face a simple choice: Either step up and lead or watch digital asset innovation move offshore.' Sign in to access your portfolio
Arabian Post
13-05-2025
- Business
- Arabian Post
Animoca Brands Eyes New York Listing Amid Shifting U.S. Crypto Landscape
Hong Kong-based blockchain firm Animoca Brands is preparing for a public listing on a U.S. stock exchange, capitalising on what its leadership describes as a 'unique moment' created by President Donald Trump's more accommodating stance toward digital assets. The company, known for its investments in Web3 gaming and decentralised finance, is exploring various shareholding structures and aims to finalise its plans in the near future. Executive Chairman Yat Siu indicated that the decision to pursue a U.S. listing marks a significant shift from the company's previous position. Under the Biden administration, stricter regulatory measures had deterred Animoca from entering the American market. However, the current administration's efforts to position the U.S. as a global hub for digital assets have altered the landscape. 'It's a unique moment in time,' Siu remarked, emphasising the strategic importance of accessing the world's largest capital market. Animoca Brands, which was valued at nearly $6 billion in 2022, reported unaudited revenues of $314 million for the year ending December 31, 2024. The company's earnings before interest, taxes, depreciation, and amortisation stood at $97 million. Its financial reserves include approximately $293 million in cash and stablecoins, alongside $538 million in digital assets. These figures reflect a robust financial position as the company considers re-entering public markets after its delisting from the Australian Securities Exchange in 2020. The potential listing aligns with a broader trend of crypto-focused companies seeking to establish a presence in the U.S. market. Notably, American Bitcoin, a cryptocurrency mining firm backed by Eric and Donald Trump Jr., announced plans to go public through a merger with Gryphon Digital Mining. This move underscores the growing influence of pro-crypto sentiments within the current administration and the opportunities they present for blockchain enterprises. See also ARK Invest Projects Bitcoin to Reach $2.4 Million by 2030 Animoca's portfolio includes investments in over 540 companies, with stakes in prominent entities such as OpenSea, Kraken, and Consensys. The firm's diverse holdings span various sectors within the digital asset ecosystem, reinforcing its position as a significant player in the industry. Siu highlighted the company's unique approach, stating, 'We think we're the biggest non-financial services crypto firm,' and emphasised the importance of showcasing innovation beyond traditional financial services through a public listing. The company's Digital Asset Advisory business experienced substantial growth, generating $165 million in bookings for 2024, a 116% increase year-over-year. This segment provides services such as token advisory, marketing, and trading support, contributing significantly to Animoca's revenue streams. Additionally, the firm reported $110 million in bookings from its Web3 operating businesses and $39 million from investment activities. Arabian Post – Crypto News Network
The National
29-04-2025
- Business
- The National
Axie Infinity investor Animoca plans to fund UAE start-ups as it debuts in Middle East
Venture capital and software company Animoca Brands is planning to set up funds for UAE start-ups as it makes its debut in the Middle East, its newly-appointed regional head has said. The Hong Kong-based Web3-oriented firm, which reportedly has a value of about $6 billion, will open its first regional office in Dubai, with plans to bridge the gaps in financing, market access and mentorship that start-ups are facing, said Omar Elassar, managing director for the Middle East and head of global strategic partnerships at Animoca Brands. Web3 is the third stage of the World Wide Web's evolution that uses the capabilities of artificial intelligence, machine learning and blockchain to make the internet smarter. 'There is definitely a high concentration of capital and investors [in the UAE], liquidity providers who are sitting on the sidelines that maybe have been burnt in the past and are waiting for an institutional grade platform to come in. So, that's where we really do see an opportunity; we will be looking to launch a liquid fund and a venture-style investing fund,' Mr Elassar told The National. The size of the funds have yet to be determined, he added. 'In terms of founder enablement, we're going to be supporting some of the start-ups and the more established crypto companies [in the UAE] through investment, through ecosystem advisory and through infrastructure,' Mr Elassar said. The strategy would branch out into strategic and commercial expansion, with Animoca planning to work 'with some of the corporates the government and regulators to drive high impact, real world use cases', he said. Animoca, which is also a gaming company, has four major business lines aimed at start-ups – advisory, incubation, investments and institutional applications. It has investments in more than 540 companies, including in Sky Mavis, the developer of the popular blockchain game Axie Infinity. It also has a regulated stablecoin project in partnership with Standard Chartered and Hong Kong Telecom. Animoca's bookings – a measure of total sales and income generating activity – from Web3 operating businesses of subsidiaries and projects incubated by the company hit $110 million in 2024, the company reported in March. While that is down from the $182 million it posted in 2023, overall bookings for last year grew more than 12 per cent annually to $314 million, anchored by its digital asset advisory business that surged 114 per cent year-on-year to $165 million, it said. Investment activity, meanwhile, jumped more than 85 per cent to $39 million. While Animoca's Dubai office will officially mark its entry into the Middle East, this will not be the first time it will have a footprint in the region: in October 2023, it partnered with Saudi Arabia's Neom Company for a $50 million investment to support Web3 programmes. The Emirates and the kingdom will be, for now, Animoca's focus, and any expansion into other countries in the region will be explored, according to Mr Elassar. 'The Middle East is a big place and there are definitely other interesting markets … there's a lot of work to do [in the UAE and Saudi Arabia] for the time being – but I wouldn't take anything off the table,' he said. The UAE has continuously extended its support to start-ups, which are playing a key role, working to pitch and develop new ideas using the latest innovations to solve real-world problems. Start-ups in the Emirates raised about $619 million in 2024, second in Mena behind only Saudi Arabia's $750 million and part of an overall $1.9 billion in the region, according to Dubai-based data platform Magnitt. 'The UAE is a springboard for global business, and this market is very well positioned to influence how the Web3 industry really shapes up,' Mr Elassar said.
Yahoo
19-04-2025
- Business
- Yahoo
The Path to Mass Web3 Adoption With Yat Siu
Animoca Brands co-founder and Chairman Yat Siu breaks down the company's strategy for mainstream adoption of crypto by 2025 and expansion into areas like digital identity, DeFi solutions for student loans, and educational initiatives. Plus, the significance of the US market and Hong Kong's progress in Web3 developments. This content should not be construed or relied upon as investment advice. It is for entertainment and general information purposes.
