September 10th, 2024
Digital Asset Horizons Korea: A Recap
Last week we hosted our first Korean seminar, Digital Asset Horizons, alongside sponsors Blockdaemon and HappyBlock. We gathered 100 guests from the Korean financial industry and beyond to discuss the current trends and future development of crypto ETF’s in the US, Hong Kong, and more, in the iconic Conrad Hotel, Seoul.
Throughout the morning, we hosted three panels featuring speakers from various companies, who shared their expertise and insights during the discussions.
Panel 1: Korea- Global Partnerships: Current State and Institutional Readiness for the Future.
Moderated by Peter Chung (Head of Research, Presto Research) featuring Shin Hee Jin (Director Head of New Business Development, Kybo Securities) and Byun Jai Yung (Principal Consultant, SBI Digital Market).
The session kicked off with news of a recently signed MOU on token securities between Kyobo Securities and SBI Digital Markets. Byun Jai Yung, Principal Consultant at SBI Digital Markets, highlighted this development while emphasizing the pressing need for greater regulatory clarity and standardization in Korea’s digital asset landscape. Byun also unveiled SBI Digital Markets’ plans to launch Security Token Offerings (STOs) in both international and domestic markets, focusing on tokenizing real-world assets such as bonds, funds, and alternatives. This initiative aims to bridge traditional finance with blockchain technology, potentially transforming approaches to asset management and investment.
Part 2: Global ETF Market Dynamics: Regulatory Adoption and Activity in Hong Kong, US”
Moderated by Daniel Kim (CEO, Tiger Research) featuring: Hannah Kim (Associate Director of Sales & Client Service, Bosera Funds), Abel Seow (Head of APAC, BitGo), and Edward Lee (Head of Product, Coinbase).
The panel explored the global landscape of Bitcoin ETFs, comparing approaches in the US and Hong Kong. Hong Kong’s proactive regulatory framework has cultivated new businesses and enhanced investor protection, resulting in its Bitcoin ETF growing tenfold since its launch. This underscores the crucial role of robust regulations in establishing cryptocurrencies in financial markets. The discussion also delved into key market considerations beyond regulation, such as ETF management strategies to minimize benchmark deviations, particularly challenging due to Bitcoin’s volatility and the use of New York market close times for indexing. Additionally, the panel emphasized the importance of scrutinizing custodian security systems and track records, given the ongoing risks of crypto asset hacking, highlighting the multifaceted nature of considerations for both regulators and investors in the evolving cryptocurrency ETF space.
Panel 3. Future Directions in Digital Asset Financial Products: Innovations and Trends to Watch
Moderated by Brian Paik (Smashfi, CEO), featuring: Youjin Jeong (Index Product Manager, Kaiko), Glenn Woo (Head of Sales, Blockdaemon), Chris Brewer (COO, Infinity Exchange), Jason French (Executive Director, Jason French).
The panel discussion covered a broad range of topics within the institutional digital asset market. Kaiko shared insights on their role as an index provider and highlighted the key components institutions should consider. Infinity Exchange discussed the utility of lending in the digital asset space, explaining how users can transfer and lock up collateral before entering lending or borrowing transactions, with options for floating or fixed terms and opportunities for curve or relative value trades. Blockdaemon focused on institutional staking, explaining how ‘yield’ in the crypto world mirrors dividend and interest income in traditional markets. They also detailed Ethereum staking, which requires a minimum of 32 coins and allows smaller investors to participate in earning GAS fees through staking. While the U.S. has yet to approve Ethereum ETFs with this feature, countries like Hong Kong are considering it. Lastly, Sygnum discussed how they balance innovation in digital asset banking with strict international regulations, ensuring trust and security for their institutional clients across multiple jurisdictions, including Switzerland and Singapore.
In closing, Digital Asset Horizons provided valuable insights into the evolving landscape of crypto ETFs and digital asset innovation, offering attendees a unique opportunity to engage with industry leaders and explore the future of institutional adoption in Korea and beyond. Look out for our next education session!
