What The FinTech #78: 19 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
Binance pulls out of Singapore
Robinhood acquires cross-exchange crypto trading firm Cove Markets
Germany's trillion-euro savings banks mull crypto wallet
Nike buys virtual sneaker maker RTFKT in metaverse push
Solana Ventures, Forte, Griffin invest US$150 million in blockchain gaming
Polytrade taps crypto liquidity to provide invoice financing
Binance pulls out of Singapore
Binance Singapore unit has withdrawn its application for a crypto permit by the Monetary Authority of Singapore (MAS) to operate in the city-state, and will shut down its operations in the financial hub by Feb 13. Effective immediately, registrations, crypto and currency deposits as well as trading on Binance.sg will be closed. Users will be able to buy and sell crypto using their existing assets until Jan 12, and all accounts must be closed by Feb 13. The decision comes as Binance, the world's largest cryptocurrency exchange, is set to announce its decision for a global home soon. This move will put Singapore out of the running, paving the way for a Europe and Middle Eastern push.
More here: https://www.ft.com/content/22faa870-7548-4824-96c2-f26f66d1fab5
Robinhood acquires cross-exchange crypto trading firm Cove Markets
No-fee stock and crypto trading app Robinhood has acquired cross-exchange trading platform Cove Markets to help ensure quality trade executions for its users, the company said in a blog post. The terms of the deal were not disclosed. Cove Markets was launched three years ago to help users manage their accounts and use tools to build their portfolios, facilitating cross-exchange trading options for several popular crypto exchanges like Coinbase Pro, Kraken, Bitfinex, and Bitstamp among others. The cross-exchange nature of Cove Markets will help Robinhood bridge the gaps between crypto exchanges. As of now, it remains unclear to what extent would Robinhood use Cove Markets' existing technology and if it would introduce to its own platform.
More here: https://www.coindesk.com/business/2021/12/14/robinhood-acquires-cross-exchange-crypto-trading-firm-cove-markets/
Germany's trillion-euro savings banks mull crypto wallet
Germany's savings banks, a conservative bastion that holds more than €1 trillion for thrifty Germans, is looking into offering a wallet to trade cryptocurrency, a group of the banks said. The project marks a potentially radical departure for the banks, whose customers still use cash and eschew risky investing or heavy borrowing. Entrusted with the savings and investments of roughly 50 million customers, they make up Germany's biggest financial group. "The interest in crypto assets is huge," a spokesman for the German Savings Banks Association said. He added that no decision had been taken and that the savings banks group was currently sceptical. The move comes against a backdrop of high inflation and penalty charges on banks and savers from negative interest rates, fuelling a heated debate in Germany about central bank money printing. It has prompted Germans to invest more in property and elsewhere to avoid what some have dubbed the "expropriation" of their wealth.
More here: https://www.reuters.com/markets/europe/germanys-trillion-euro-savings-banks-mull-crypto-wallet-2021-12-13/
Nike buys virtual sneaker maker RTFKT in metaverse push
Nike Inc said on Monday it had bought virtual sneaker company RTFKT for an undisclosed sum, as the sportswear giant looks to quickly expand its footprint in the fast-growing "metaverse". Last month, Nike became one of the first big brands to enter the shared virtual world that gained prominence after Facebook Inc recently rebranded itself to Meta Platforms Inc. In such blockchain-based environments, users can buy virtual land and other digital assets such as clothing for avatars in the form of a crypto asset called a non-fungible token (NFT). The acquisition announcement comes at an opportune time for the studio; RTFKT is currently behind one of the most talked-about NFT project drops of the month — a sweeping avatar partnership with artist Takashi Murakami called CloneX.
More here: https://www.sportico.com/business/commerce/2021/nike-acquires-virtual-sneaker-creator-rtfkt-in-metaverse-push-1234650409/
Solana Ventures, Forte, Griffin invest US$150 million in blockchain gaming
Solana Ventures, a unit of technology company Solana Labs, on Tuesday announced the launch of a US$150 million investment initiative focused on blockchain gaming, in collaboration with Forte and Griffin Gaming Partners, two major players in the sector. In blockchain-enabled games, players around the world can own goods, freely trade goods and services with each other, and participate in community economies that reward creativity, collaboration and skill. Griffin, meanwhile, has invested more than US$400 million in gaming and Web 3.0 gaming-related companies over the past two years.
More here: https://www.channelnewsasia.com/business/solana-ventures-forte-griffin-invest-us150-million-blockchain-gaming-2379766
Polytrade taps crypto liquidity to provide invoice financing
For many micro, small, and medium-sized enterprises in Southeast Asia, cash flows have topped their lists of concerns during the pandemic. Invoice financing allows suppliers and manufacturers to borrow money against unpaid invoices through a third-party lender like a bank or a financial institution. This shortens their working capital cycle and improves cash flow. The Polytrade platform seeks to facilitate invoice financing by connecting companies with crypto investors. Polytrade is preparing to go live by mid-January 2022, and it wants to be a major competitor in this space. The platform enables investors to gain interest over their capital deposited on the Polytrade platform via stablecoins, including Tether and USD Coins, or through the company’s Trade token. On the other hand, borrowers can quickly get access to cash by selling their invoices at a discounted price on Polytrade.
More here: https://kr-asia.com/polytrade-taps-crypto-liquidity-to-provide-invoice-financing
HONG KONG
Hong Kong’s Open API Ambitions Expands to the Insurance Sector
Hong Kong’s Open API Ambitions Expands to the Insurance Sector
The Insurance Authority (IA), Hong Kong’s insurance regulator, is exploring the development of an open application programming interface (API) framework and has established a working group focused on the initiative. Recognizing the importance of open API in the insurance sector, the agency is looking to introduce an Open API Framework to further boost collaboration between stakeholders and facilitate data sharing within and beyond the insurance industry. The IA’s open API framework comes on the back of the ongoing rollout of the Open API Framework for the banking sector, a major initiative under the broader Smart Banking plan unveiled in 2017.
More here: https://fintechnews.hk/17520/insurtech/hong-kongs-open-api-ambitions-expands-to-the-insurance-sector/
SINGAPORE
MAS green lights Nityo’s US$100 million investment in MatchMove
Singapore and South Korea conclude negotiations on digital economy agreement
NTUC Income’s BIX onboard UOB Asset Management’s digital advisory service
MAS green lights Nityo’s US$100 million investment in MatchMove
The Monetary Authority of Singapore (MAS) has approved Nityo Infotech Corporation’s investment into Singaporean fintech MatchMove Pay. MatchMove Pay is a financial technology company providing innovative enterprise payments solutions. Nityo is providing MatchMove with an investment of US$100 million comprising US$20 million cash and US$80 million in kind consisting of technology services, specialist personnel, cost synergies and enhanced sales and distribution. For MatchMove, this allows the company to leverage Nityo’s assets, distribution, products and expertise. Nityo will also support MatchMove’s planned market entry across new regions over the next year, particularly in the US, Europe and South America as the former has a long-standing presence and strong relationships with local banks.
More here: https://fintechnews.sg/57835/funding/mas-green-lights-nityos-us100-million-investment-in-matchmove/
Singapore and South Korea conclude negotiations on digital economy agreement
new digital economy agreement between Singapore and South Korea will enable more seamless cross-border data flows and build a "trusted and secure" digital environment for businesses and consumers, said Singapore authorities. Both countries have concluded negotiations on the Korea-Singapore Digital Partnership Agreement (KSDPA), which will be Singapore’s fourth digital economy agreement, and its first with an Asian country. The agreement will also deepen bilateral cooperation in emerging areas such as personal information protection, e-payments and source code protection. The agreement will also help to promote jobs and growth for small- and medium-sized enterprises (SMEs) by encouraging them to participate in platforms that help link them with international suppliers, buyers and other potential business partners. South Korea and Singapore will also be able to identify cross-border opportunities to facilitate artificial intelligence innovation and collaborations, said MTI, MCI and IMDA.
More here: https://www.channelnewsasia.com/singapore/singapore-south-korea-digital-economy-agreement-negotiations-2380641
NTUC Income’s BIX onboard UOB Asset Management’s digital advisory service
UOB Asset Management (UOBAM) and NTUC Income (Income) have teamed up to enhance the accessibility of online corporate investing services by enabling Income’s corporate customers to access UOBAM Invest on BIX. UOBAM Invest is Singapore’s first digital advisory service for corporate investors, whilst BIX is Income’s corporate insurance self-serve platform. UOBAM is the first partner on board BIX, the two said in a joint announcement. Digital investment services such as UOBAM Invest are reportedly fast gaining traction in Singapore and other markets such as Malaysia and Thailand. This comes amidst increased demand from corporate investors for solutions that enable them to self-serve and to manage their portfolios in real-time, UOBAM and Income noted in the press release.
More here: https://sbr.com.sg/banking-technology/news/ntuc-incomes-bix-onboard-uob-asset-managements-digital-advisory-service
ASIA
UOB Indonesia launches E-Commerce BNPL service “TMRW Pay”
Grab to buy Malaysia grocery chain Jaya Grocer
Meta bets big on WhatsApp Pay in India
Kungthai Bank leverages Nium’s payment rails for cross border payments
UOB Indonesia launches E-Commerce BNPL service “TMRW Pay”
UOB’s mobile-only banking solution TMRW announced the launch of TMRW Pay, an e-commerce loan that enables consumers in Indonesia to manage their budgeting needs. TMRW Pay offers consumers deferred payment services, with zero interest for up to 90 days and instant credit approval through TMRW’s partner, Bhinneka’s website and app. Bhinneka is an online-to-offline e-commerce platform in Indonesia that has more than one million monthly active users and 70,000 unique products listed. UOB said that its data showed that more than half of the transactions on the TMRW credit cards were for e-commerce purchases from January to October 2021. The bank indicated that it will be working with more “like-minded partners” to offer its customers easier online access to credit.
More here: https://asianbankingandfinance.net/cards-payments/news/uobs-indonesian-digital-bank-arm-launches-buy-now-pay-later-services
Grab to buy Malaysia grocery chain Jaya Grocer
Grab the largest ride-hailing and food delivery firm in Southeast Asia, is buying Malaysian grocery chain Jaya Grocer, according to a filing with the US Securities and Exchange Commission. For regulatory purposes, Grab intends to partner with a local investor which will own 50 per cent of the voting shares in Jaya Grocer, the filing added. The deal comes after Grab increased its control in Indonesian e-wallet OVO earlier this year.
More here: https://www.reuters.com/markets/deals/grab-buy-malaysia-grocery-chain-jaya-grocer-2021-12-14/
Meta bets big on WhatsApp Pay in India
During the second edition of Fuel For India, a virtual annual India event, which showcases Meta’s various initiatives in the country, the company said its chat platform WhatsApp has kicked off a pilot program to enable people in 500 villages across the states of Karnataka and Maharashtra to pay through WhatsApp. The initiative is a part of the company’s mission to onboard the next 500 million people to the digital payments ecosystem. Dubbed as Digital Payments Utsav, the pilot started in mid-October in a village in Mandya district of Karnataka, where an on-ground team educated people about digital payments. Late last month, the National Payments Corporation of India (NPCI) allowed WhatsApp Pay to increase its user base to 40 million from 20 million. WhatsApp also said it would continue to make “significant investments” in WhatsApp Pay, including developing many India-first features, over the next six months in order to fuel its adoption across India.
More here: https://www.bfia.org/2021/12/16/meta-bets-big-on-whatsapp-pay-in-india/
Kungthai Bank leverages Nium’s payment rails for cross border payments
Global payments platform Nium and state-owned Krungthai Bank, has announced a strategic partnership to enhance global transfer offerings for both corporate and individual customers across Thailand. Through this partnership, Krungthai will leverage Nium’s vast payment rails to enhance the cross-border payments experience for its customers. Krungthai’s customers can now make international transfers in 7 main global currencies namely USD, GBP, EUR, AUD, CAD, HKD and SGD. Customers will also benefit from cheaper rates when choosing to transfer from ‘Krungthai Inter Wallet’, a foreign currency e-wallet currently exclusively offered by the bank within its mobile app.
More here: https://www.nium.com/newsroom/krungthai-bank-partners-with-nium-to-enhance-global-payment-offerings
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