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Standard Chartered Unleash Blockchain Innovation In Singapore

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In a strategic move to establish a presence in the Singapore cryptocurrency landscape, StanChart, the venture wing of Standard Chartered, has introduced Libeara, a blockchain platform designed to tokenize traditional financial instruments, with a focus on the Singapore bond fund market. Libeara aims to digitalize financial instruments on blockchains, eliminating the need for third-party intermediaries, thereby reducing costs and enhancing operational efficiency.

Partnering with Singapore-based fund platform solutions provider FundBridge Capital, Standard Chartered’s Libeara intends to create the first tokenized Singapore-Dollar Government Bond Fund, targeting professional investors with a higher net worth and a deeper understanding of financial investing. The launch is contingent upon regulatory approval from Singapore authorities and is anticipated to provide additional investment opportunities with lower operating costs, increased transparency, and operational efficiency.

Standard Chartered
Standard Chartered Unleash Blockchain Innovation In Singapore 2

FundBridge’s CEO, Sue Lynn Lim, highlighted the traditional market’s dependence on favored intermediaries and inefficient operational processes, expressing the goal of Libeara to introduce investment opportunities with improved cost-effectiveness and operational efficiency. Investors leveraging Libeara’s system will have the ability to directly subscribe to tokenized government-issued bonds, manage their tokens in secure digital wallets, and execute redemptions and transfers using blockchain technology.

The launch of Libeara aligns with SC Ventures’ strategic expansion into Asia’s digital asset space, a sector historically dominated by non-bank entities. Besides Libeara, StanChart has majority stakes in Zodia Custody, which holds digital assets, and Zodia Markets, a crypto exchange that services institutional clients.

Standard Chartered’s Hong Kong Expansion

As reported by TronWeekly, the digital asset custodian supported by Standard Chartered has recently extended its services to Hong Kong, marking a significant expansion in the Asia-Pacific region. Established in 2020, Zodia Custody specializes in providing secure investment opportunities in cryptocurrencies, primarily catering to institutional clients such as corporations and professional investors.

The decision to expand into Hong Kong was driven by the substantial demand for crypto assets, especially from institutional entities rather than individual retail customers, as per Julian Sawyer, Zodia’s CEO.

“From an emerging market perspective, there are pockets of jurisdictions where a token-form government bond can actually decrease the cost of owning and having one,” Aaron Gwak, Libeara’s CEO, told Nikkei Asia. “This is the type of infrastructure that we want to build and be able to supply to countries.”

Standard Chartered’s Crypto Venture Expands To Hong Kong

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UK-based Zodia Custody, a digital asset custodian supported by Standard Chartered, has recently extended its services to Hong Kong, marking a significant expansion in the Asia-Pacific region, according to a CNBC report. Established in 2020, Zodia Custody specializes in providing secure investment opportunities in cryptocurrencies, primarily catering to institutional clients such as corporations and professional investors.

The decision to expand into Hong Kong was driven by the substantial demand for crypto assets, especially from institutional entities rather than individual retail customers, as per Julian Sawyer, Zodia’s CEO.

The Hong Kong government and the regulators see digital assets as the future and also want Hong Kong to be a hub. What we’re seeing is there are absolutely clients in all of those four markets who want to do things. We also see a lot of other clients and prospects outside those four jurisdictions that want to come in on the institutional side.

Hong Kong’s robust market appetite for cryptocurrencies, coupled with a progressive stance from the government and regulators, made it an ideal destination for Zodia’s expansion efforts. The Hong Kong authorities view digital assets as integral to the future financial landscape and are keen on establishing the city as a hub for such innovations.

Standard Chartered
Standard Chartered's Crypto Venture Expands To Hong Kong 4

Zodia Custody’s expansion into Hong Kong is part of its proactive approach in the Asia-Pacific region. In recent months, the company has extended its services to countries such as Japan, Singapore, and Australia. Importantly, Zodia Custody is not undertaking this expansion journey alone; it has formed strategic partnerships with well-established institutions like Standard Chartered, Northern Trust, and Japan’s SBI Holdings.

This expansion aligns with the backdrop of Hong Kong’s banking regulator urging major financial institutions, including HSBC and Standard Chartered, to consider embracing cryptocurrency exchanges as their clients. Although Hong Kong’s banks have not imposed outright bans on crypto clients, their cautious approach stems from concerns about potential legal consequences if these platforms are linked to money laundering or illicit activities.

Standard Chartered Under Regulatory Spotlight

Standard Chartered, being a significant player in Hong Kong, holds key positions as issuers of the city’s currency and within the Hong Kong Association of Banks lobby group. A spokesperson from Standard Chartered emphasized the bank’s ongoing dialogues with regulators on various topics.

Concurrently, Zodia Custody is engaging in discussions with both the Securities and Futures Commission [SFC] and the Hong Kong Monetary Authority to ensure regulatory compliance within the financial district. This signifies Zodia Custody’s dedication to operating within the bounds of regulations and maintaining a compliant business approach.