HSBC and Ant Group test tokenized deposits under HKMA sandbox

November 1, 2023 Coin Telegraph

Banks

During the test, HSBC was connected to the blockchain platform developed by Ant Group and supported by Ant Group’s banking partners.

Banking giant Hong Kong and Shanghai Banking Corporation (HSBC) have tested the use of tokenized deposits – from issuance to transfer to redemption – with major Chinese banker Ant Group, founded by Jack Ma, in a sandbox arranged by the Hong Kong Monetary Authority.

The initiative led by the banking institutions aimed to explore the potential of deposit tokenization in enabling always-on, real-time treasury fund movement between accounts held by a corporation within the HSBC network.

During the test, HSBC was connected to the blockchain platform developed by Ant Group and supported by Ant Group’s banking partners. In an official communication shared with Cointelegraph, HSBC revealed that the test encompassed the issuance, transfer, and redemption of deposit tokens, adding:

“It will pave the way for future research on how blockchain and tokenization can drive efficiencies and foster innovations in corporate treasury management.”

The involvement of Ant Group’s banking partners enhances treasury fund transfer with improved turnaround time, cost efficiency and visibility. Vincent Lau, Global Head of Emerging Payments, Global Payments Solutions, HSBC, confirmed the bank’s interest in continuing to leverage tokenized deposits and other financial innovations to streamline and optimize treasury management for clients.

HSBC has also been an active participant in various central bank digital currency (CBDC) initiatives, including Swift cross-border CBDC initiative Project mBridge.

HSBC reportedly introduced its first local cryptocurrency services in June 2023.

SCOOP: HSBC, the largest bank in Hong Kong, today allows its customers to buy and sell Bitcoin and Ethereum ETFs listed on the Hong Kong exchange, and is also the first bank in Hong Kong to allow it. The move will expand local users’ exposure to cryptocurrencies in Hong Kong. pic.twitter.com/vH0LieSVGw
— Wu Blockchain (@WuBlockchain) June 26, 2023

According to the report, HSBC would offer cryptocurrency ETFs listed on the Stock Exchange of Hong Kong, which include CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF and Samsung Bitcoin Futures Active ETF.

HSBC did not immediately respond to Cointelegraph’s request for comment.

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Jack Ma surrenders control of fintech giant Ant Group

January 12, 2023 Coin Telegraph

Alibaba

After founding Ant Group in 2014, Chinese billionaire Jack Ma is now ceding control of the company as part of Ant’s corporate structure changes.

Chinese billionaire and Alibaba founder Jack Ma will no longer control the fintech giant Ant Group as part of recent changes to the company’s corporate structure.

Ant Group officially announced that Ma has agreed to give up control of Ant Group as part of the company’s further corporate governance optimization and restructuring.

Prior to the change, Ma was the control person in Ant, exercising control over the company through related entities in addition to his 10% stake in Ant.

Once the restructuring process is complete, no single shareholder will have control over Ant, the company said in a statement. Major shareholders like Hangzhou Junhan and Hangzhou Junao will independently exercise their voting rights in Ant, the firm noted.

“The adjustment will not result in any change to the economic interests of any shareholders of Ant Group and their beneficiaries,” Ant added.

Ant’s restructuring and Ma relinquishing control over the company could have a positive impact on the firm in the long term, according to some analysts.

Wang Pengbo, senior financial analyst at BoTong Analysys, believes that the new company structure with more diversified voting rights is more stable. “It paves the way for it to go public in future, although a listing in the immediate future is very unlikely,” he noted.

Amid the news of Ma surrendering control over Ant, shares of Ant-affiliated company Alibaba have jumped significantly. Alibaba stock (BABA) has rallied nearly 10% on the New York Stock Exchange since Ant made the announcement, according to data from TradingView.

*Alibaba’s stock 30-day price chart. Source: TradingView*

As previously reported, Ant attempted to conduct the largest initial public offering (IPO) in 2020, planning to raise about $30 billion. The Chinese government eventually opted to halt Ant’s IPO, as local authorities wanted to assert their power over private business.

After the IPO suspension, Ant has continued to actively explore the benefits of blockchain and digital assets though. Owning the world’s largest digital payment platform Alipay, Ant continued to be involved in the development of China’s national digital currency after starting cooperation with the People’s Bank of China back in 2017.

The company is also among Chinese tech giants that created blockchain alliances over the past few years for related operations. The company has been actively developing its blockchain business, AntChain, introducing new products in 2022.

Despite its apparent interest in blockchain and related technologies, Ant has still moved to comply with China’s negative stance on crypto. As Cointelegraph reported in March 2022, Ant Group was among firms enforcing some restrictions on their nonfungible token platforms fearing the government’s crackdown.

Chinese Billionaire Jack Ma Agrees to Cede Control of Fintech Giant Ant Group

January 12, 2023 Bitcoin.com

Alibaba launches NFT marketplace for copyright trading

August 17, 2021 Coin Telegraph

Alibaba

Alibaba has launched a new marketplace allowing trademark holders to sell NFT representing licenses to their copyright.

Chinese multinational e-commerce firm, Alibaba Group Holding, has launched a new nonfungible tokens (NFTs) marketplace allowing trademark holders to sell tokenized licenses to their intellectual property.

The new NFT marketplace, dubbed “Blockchain Digital Copyright and Asset-Trade,” can be accessed via Alibaba's Auction platform. NFTs launched via the platform will be issued on the “New Copyright Blockchain” — a distributed ledger technology platform centrally operated by the Sichuan Blockchain Association Copyright Committee.

According to an Aug. 17 report from the Alibaba-owned news publication, South China Morning Post (SCMP), the marketplace hopes to target writers, musicians, artists, and game developers.

The marketplace is already live, hosting several NFTs that are set to be auctioned next month. Bidders must post a deposit of 500 yuan (roughly $77) to participate in auctions. Each upcoming auction has set a reserve price of $15 each.

Buyers can view their collections via crypto portfolio application, Bit Universe, which is integrated into WeChat.

Commenting on the new marketplace, SCMP reporter Josh Ye tweeted that “although the technology itself does not prevent unauthorised copying. Sales include complete ownership of works purchased through the platform.”

Many NFTs on display do not articulate what rights are afforded to purchasers, with one NFT even appearing to depict unlicensed Star Wars fan art.

While this is Alibaba’s biggest NFT announcement to date, many of the firm’s subsidiaries have are already embracing nonfungible tokens.

In July, Cointelegraph reported that Alibaba-owned e-commerce platform Taobao showcased NFTs for the first time in its annual Maker Festival celebrating Chinese art and entrepreneurship. The event hosted the sale of NFT-based real estate created by Chinese artist, Huang Heshan.

In the same month, SCMP launched an NFT project named ‘ARTIFACT’ which included tokenized historical moments reported by the publication from its 118- year-old archive, such as the handover of Hong Kong from the U.K. to China in 1997.

Ant Group highlights private sector’s role in developing digital yuan

April 26, 2021 Coin Telegraph

Alibaba

Major tech and commerce firms have been instrumental in helping China's central bank develop the digital yuan.

Major Chinese technology and commerce firms are starting to open up regarding their involvement in developing the digital yuan.

Ant Group and Tencent Holdings revealed the extent of their collaboration with the People’s Bank of China in developing the digital yuan at the Digital China Summit, an annual trade fair in the city of Fuzhou in southeastern Fujian province.

According to the South China Morning Post, Ant Group started working with the PBoC on the digital yuan in 2017, years before China officially debuted digital currency pilots in 2020. In June 2019, China’s digital currency institute reportedly used Ant’s mobile app development platform to create its own digital yuan app.

Ant Group said that it started officially testing China’s digital yuan in July 2020, launching a digital currency trial in Shanghai late that year. The company also noted that Ant-backed digital bank MYBank became one of the financial institutions to offer the Chinese CBDC.

Tencent said that it started CBDC tests as early as February 2018, forming a team of digital yuan experts by the end of that year. “Tencent has been taking part in the PBOC’s e-CNY project from the start, and will continue to carry out pilot trials in accordance with the guidance of the PBOC,” a spokesperson for the firm said.

Other companies like smartphone giant Huawei Technologies and e-commerce platform JD.com have also been involved in the digital yuan's development. Last year, Huawei became the first smartphone to feature a hardware wallet for China’s digital currency. JD.com started collaborating with the PBoC in September 2020, providing its technology and service support for currency pilots. In late 2020, the company reportedly became the first online platform to accept the digital yuan.

Jack Ma

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