What The FinTech #77: 12 Dec 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.
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What was the FinTech this week in: 📰
BLOCKCHAIN - CRYPTO - DIGITAL ASSETS - DE FI
WhatsApp will allow crypto payments through Novi wallet in U.S
French and Swiss central banks hail successful wholesale CBDC trial
Binance acquires 18% stake in Singapore-regulated Hg Exchange
Crypto.com becomes first fintech company to attain Data Protection Trust Mark
Visa launches crypto advisory service for financial institutions, merchants
Kickstarter will move its crowdfunding platform to blockchain
Stacked raises $35M to bring passive investing tools to retail crypto traders
WhatsApp will allow crypto payments through Novi wallet in U.S
Meta Platforms Inc's cryptocurrency wallet, Novi, will allow users to send and receive money through the social media giant's messaging app, WhatsApp. The pilot program is open to a limited number of people in the United States, said Novi head Stephane Kasriel. Users will have to find their intended contact within WhatsApp, tap the paper clip icon on Android or the + icon on iOS in the text bar, select Payment and follow instructions on how to log into their Novi account. Meta Platforms, formerly Facebook, has been working on the wallet app for several months, while scaling back its global plans for rolling out a digital currency called Diem on regulatory concerns. The development doesn’t come as a surprise: Novi co-founder David Marcus previously said that Meta will roll out Novi payments to all of its subsidiaries, namely Facebook, Instagram and WhatsApp.
French and Swiss central banks hail successful wholesale CBDC trial
Europe's first cross-border trial of central bank digital currency (CBDC) payments has been described as a success by the central banks of Switzerland and France, though they said it would not immediately lead to issuance of CBDCs. Project Jura is the latest in a series of CBDC trials conducted by central banks keen to rebut the threat from crypto assets. The trial, the first time a digital euro and Swiss franc were fully tested, showed it was possible to settle foreign exchange transactions in euro and Swiss franc wholesale CBDCs, as well as issuing, redeeming and transferring tokenised euro-denominated French commercial paper between financial institutions. Jura focused on bank-to-bank "wholesale" lending markets which unlike retail CBDCs, are limited to financial institutions. The trial involved the Bank for International Settlements (BIS), Swiss banks UBS and Credit Suisse and France's Natixis, alongside Swiss bourse operator SIX, fintech R3, and consultancy Accenture.
Binance acquires 18% stake in Singapore-regulated Hg Exchange
The embattled crypto exchange will acquire the post-money stake, which includes its own investment, via its Singapore arm, Binance Asia Services. This move comes after Binance has mulled leaving Singapore over its regulatory licence limbo. HGX, founded by PhillipCapital, PrimePartners and powered by Zilliqa’s blockchain, aims to facilitate cross-border issuance and trading of securities. Earlier this year, the platform was granted a Recognised Market Operator license by the Monetary Authority of Singapore. The acquisition could help with Binance's regulatory hurdles, as HGX was recently granted a recognised market operator licence from the Monetary Authority of Singapore. Other than private companies, HGX is working to list alternative assets such as wine, art and real estate.
Crypto.com becomes first fintech company to attain Data Protection Trust Mark
Cryptocurrency trading platform Crypto.com has been awarded the Data Protection Trust Mark (DPTM), making it the first financial technology company to attain the enterprise-wide certification. Crypto.com provides customers prepaid debit card services that allows cardholders to buy, sell and spend cryptocurrency. It also runs an app for cryptocurrency trading. Awarded by Singapore's Infocomm Media Development Authority (IMDA), the DPTM was introduced to recognise companies that have put in place data protection regimes to comply with obligations under the Personal Data Protection Act. Currently, the Singapore Infocomm Media Development Authority has awarded less than 70 DPTMs to organizations in Singapore of any kind.
Visa launches crypto advisory service for financial institutions, merchants
Visa Inc, on Wednesday launched a global crypto advisory service for clients such as banks and also merchants, as the adoption of digital currencies gains steam. Visa's services include educating institutions about cryptocurrencies, allowing clients to use the payment processor's network for digital offerings, and helping manage backend operations. Visa currently uses its network to allow buying, selling, and custody of digital currency. It also offers a credit card that lets users earn bitcoin on purchases and also allows the use of USD Coin, a stablecoin cryptocurrency whose value is pegged directly to the US dollar, to settle transactions on its payment network.
Kickstarter will move its crowdfunding platform to blockchain
Kickstarter announced changes to the foundations of its technology on Wednesday, saying that it will support the development of “an open-source protocol that will essentially create a decentralized version of Kickstarter’s core functionality”. The protocol will live on a public blockchain and will enable anyone, “even Kickstarter competitors,” to build upon or use it, the company says. Kickstarter’s open-source protocol will be built on the blockchain platform Celo. Celo says its network is carbon-negative, partly through the purchase of carbon offsets.
Stacked raises $35M to bring passive investing tools to retail crypto traders
Stacked, a web-based platform that provides passive investment tools for retail investors interested in crypto, announced it raised a $35 million Series A led by Alameda Research, Bybit and BitDAO partner Mirana Ventures. The platform automated over $10 billion worth of transactions for thousands of new investors in 2021. Stacked, which acts as a layer on top of a user’s existing crypto brokerage account, offers a range of pre-built portfolios it calls “stacks” based on a risk score it assigns to each user after they take a suitability assessment. Its core product allows users to manage portfolios across multiple crypto exchanges, auto-rebalance and compound their portfolios, and lend cryptocurrency through FTX’s exchange. The company plans to launch a feature soon that will allow users to copy any “stack” as a template and customize it by making direct edits. Users tend to stay active on those exchanges for longer than average with Stacked, co-founder and CEO Birch added.
HONG KONG
Fintech WeLab acquires Bank Jasa Jakarta to launch Indonesian digital bank
Rapyd to buy Hong Kong-based Neat
Fintech WeLab acquires Bank Jasa Jakarta to launch Indonesian digital bank
Hong Kong-based fintech startup WeLab is leading a consortium to acquire Indonesian Bank Jasa Jakarta (BJJ) to launch a digital bank in Indonesia. WeLab is an online lending platform with operations in Hong Kong and China, and also operates Hong Kong digital bank, WeLab Bank. With 50 million users and over US$10 billion worth of loans dispensed, it is the largest online lender in Hong Kong. The upcoming digital bank would be WeLab's second venture into Indonesia, after Maucash - a joint venture with Indonesian conglomerate Astra. With Indonesia's Financial Services Authority (OJK) not issuing digital bank licences, to enter the Indonesian market would mean to buy over a bank in Indonesia, such as Gojek acquiring a stake in Bank Jago, and Sea acquiring Bank Kesejahteraan Ekonomi. WeLab has already purchased a 24 per cent stake in BJJ, with the remaining stake for majority control to be purchased after regulatory approval.
Rapyd to buy Hong Kong-based Neat
Fintech-as-a-service platform Rapyd is boosting its Asia Pacific presence through the acquisition of Hong Kong-based Neat. Neat provides a cross-border platform for SMEs and startups that helps them move into new markets by assisting with full company incorporation, business accounts, global payment collection and disbursements, as well as credit card-based capital expansion services. Rapyd says that by integrating Neat into its network, SMEs will be able to incorporate new companies in minutes, streamline receivables and payables in a single venue, starting with Hong Kong and soon in other markets.
SINGAPORE
Universities, polytechnics join hands with Dell to develop tech-related curriculum
Revolut bags CMS licence from MAS; to roll out stock trading feature in H1 2022
Singapore Among the Fastest Adopter of Digital Banking
Citi Singapore to tap global fintechs in APIX collaboration
Universities, polytechnics join hands with Dell to develop tech-related curriculum
Students in several universities and polytechnics here can look forward to new curriculum content related to emerging technologies, such as cloud computing, in the next few years. Singapore Management University, Singapore Institute of Technology, Ngee Ann Polytechnic, Singapore Polytechnic and tech giant Dell Technologies are collaborating on the new learning content. The new programme seeks to equip students across the four educational institutes with critical skills linked to new and emerging technologies, such as cloud computing, the Internet of Things and digital cities management. It also aims to build and attract a robust talent pipeline for the local information and communications technology sector. They will also have access to self-guided e-learning courses via Dell's digital learning platform. Dell said the new programme comes under its Digital Future - Made in Singapore initiative, which aims to fast-track the adoption of future-ready digital solutions and drive innovations in Singapore for partners and customers globally to be future-ready.
Revolut bags CMS licence from MAS; to roll out stock trading feature in H1 2022
London-based Revolut has obtained a capital markets services (CMS) licence from the Monetary Authority of Singapore (MAS) and is looking to implement its stock trading feature in the first half of 2022. The feature allows customers to buy fractional shares in US-listed companies, with no account minimum needed to invest, the fintech unicorn said. Subscribers have access to commission-free trades, which otherwise cost US$1 per trade. Accounts at the lowest tier, known as Standard, are free to create and entitle subscribers 3 commission-free trades per month. Metal, the highest tier, gives users access to unlimited commission-free trades per month. Besides trading, the company is looking to bring commodities and cryptocurrencies to customers in the Republic, subject to relevant approvals or licences.
Singapore Among the Fastest Adopter of Digital Banking
In Singapore, consumer preferences are rapidly evolving, with banking customers increasingly preferring online interaction over in-person interaction. A new consumer survey by digital business transformation company Publicis Sapient found that Singaporeans are prolific users of mobile banking, with one in two (50%) consumers indicating turning to mobile apps to communicate with their bank. Singapore is one of the fastest adopters of digital channels alongside Thailand, the United Arab Emirates (UAE), Canada and Sweden where at least half of respondents in each country indicated preferring using either the bank’s website or mobile app to engage with their financial institution, the survey found. Singapore is due to see the launch of its first virtual-only banks next year. Singapore-based Internet company Sea, and ride-hailing firm Grab’s venture with Singtel are both set to start operations on a restricted basis from 2022. Other expected entrants include Ant Group and consortium led Chinese real estate developer and state-owned enterprise Greenland Group.
Citi Singapore to tap global fintechs in APIX collaboration
Citi Singapore has announced its partnership with API Exchange (APIX) that will enable Citi to tap into a global ecosystem of fintech firms and swiftly identify solution partnerships in a cost-efficient way and test them in a cloud-based sandbox before implementation. With the partnership, Citi said it expects the speed of innovation to improve significantly, accelerating time to market of new solutions launched for Citi’s institutional clients. Citi had its first successful collaboration with APIX through its Citi Innovation Lab in Singapore where it assessed more than 80 fintechs to solve the unique challenges of its institutional clients in different areas such as open banking solutions, payments and more.
CHINA
Goldman Sachs launches green finance group with Beijing think tank
Aleta Planet partners Tencent to offer remittance from Singapore to China
Goldman Sachs launches green finance group with Beijing think tank
Goldman Sachs Group Inc and the International Finance Forum (IFF), a Beijing-headquartered think tank has launched a green finance working group. The working group will facilitate dialogue on climate action among senior executives from global corporations and researchers from leading institutions. They said the group will advise and work with policymakers to enhance green finance cooperation in the public and private sectors. John Waldron, Goldman's president and chief operating officer, and Zhu Xian, vice president and secretary-general of the IFF, co-chair the group. China's goal of net zero carbon emissions by 2060 could generate US$16 trillion in infrastructure investment opportunities and as 40 million net new jobs for the country, according to Goldman research.
Aleta Planet partners Tencent to offer remittance from Singapore to China
Singaporean payments service provider Aleta Planet has partnered with Tencent Financial Technology to enable local residents to remit money to WeChat users in China. Aleta Planet said that this is the first time Tencent Financial Technology has partnered with a Singaporean fintech for cross border transfer of funds. The service rides on Aleta Planet’s proprietary technology allowing residents to send money in a safe, secure, and speedy manner and at a lower cost than through conventional methods. Customers who wish to use the remittance service need to sign up for an Aleta Planet / Nestia digital card and perform the remittance to Weixin users in China.
ASIA
FRANK by OCBC goes fully digital with e-KYC platform
FRANK by OCBC goes fully digital with e-KYC platform
Customers of OCBC Bank (Malaysia) Bhd are now able to sign up for digital banking service FRANK by OCBC without physically stepping into a bank branch. In a statement, the bank said the service now comes with the highly anticipated e-KYC (electronic know your customer) platform that enables fully remote account opening, with the necessary levels of controls and security. The e-KYC platform, developed jointly with CTOS Data Systems, Malaysia’s credit reporting agency, will enable customers to apply for and fully transact with FRANK by OCBC within minutes. Customers will only need to snap a photo of their MyKad, the Malaysian identity card, and then provide verification by uploading a selfie during the process.
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