(RMB stablecoin) This weekly news aggregator from mainland China, Taiwan, and Hong Kong seeks to curate the top industry news, including impactful projects, changes in the legal landscape, and integration.
This week the word “Evergrande” has entered the vocabulary of every Western investor. After years of watching the company’s soccer team on TV and drinking their bottled water, Crypto Twitter was the last place the Shanghai Man expected. After facing over $ 300 billion in debt, all sorts of rumors flared up, causing Hong Kong-listed stocks to fall 80% and a massive crypto sell-off earlier this week.
Are you misreading your tea leaves
Western experts have mixed opinions on the matter, with CNBC’s Jim Cramer Urge People protect their crypto exposure until the news becomes more stable. Prominent investor Ray Dalio was less bothered by the news, insisting that debt was manageable and would not do much structural damage to the economy. Whatever it is, the global media, politicians, and academics have mispredicted China’s economic collapse since it became clear that the country was drifting away from China’s democratic and Western ideals in the early 2000s.
It is therefore always advisable to treat these dramatic stories with a grain of salt, especially since the Chinese government has some stabilizing influence on them to convince to help other economic actors. For this reason, betting on total doom means buying what China watchers believe in. chandelier happens and not what they believe will happen.
Yuan on blockchain RMB stablecoin
In a somewhat surprising development, the Lingang Special Zone in Shanghai was licensed to conduct business with a yuan-linked offshore stablecoin. this notification came after months of tough regulations against the use of cryptocurrencies, which has led many to conclude that the public blockchain in the country may have a finite future.
The stablecoin project called CNHC allows users to deposit assets to mint the CNHC stablecoin token. follow website, the project plans to become traditional finance’s gateway to the blockchain world while helping to develop the use of RMB abroad.
The public blockchain responsible for supporting this project is Conflux, a multi-chain network founded by academics from Tsinghua University, China’s top university. Conflux has now developed into a global network and is one of the few public chains that have been blessed by the Chinese government. Regarding the news, Christian Oertel, Director of Global Expansion at Conflux, responded by saying:
“With the recent announcement by the Chinese monetary authorities that Shanghai will take the lead in the free use of the renminbi in the Shanghai Lingang Special Zone, Conflux Network and Shanghai Maritime are promoting exploration of the recent reform of the Shanghai Free Trade Zone to internationalize the renminbi.”
Asia’s largest surveillance company is on the rise
Cobo Custody completed a $ 40 million raise to complete what they call DeFi-as-a-Service. The custodian, which has a relatively low profile in the western investment scene compared to companies like BitGo, is now looking to open up more institutional avenues for DeFi.
Cobo Custody is known in Asian crypto circles, especially in the mining scene, where the Cobo founder was an early pioneer as the founder of F2Pool. The Series B round was led by DST Global, A&T Capital and IMO Ventures and aims to obtain additional regulatory licenses to ensure the company remains AML compliant. Cobo Custody is currently working with organizations such as Deribit, WOO X, BitMart and Babel Finance.
FTX rallies based on Huobi
In the space of stock market competition, FTX is climbing to the top in terms of volume and appears to be overturning Huobi by third place behind Binance and OKEx. This would break the hegemony that Huobi, Binance, and OKEx, known as HBO, have held in the market for years. The two exchanges are already on par when it comes to the volume of derivatives, but Huobi holds the lead when it comes to spot volumes.
This is evidence of both the incredible growth FTX has seen in recent years and a diversifying Chinese user base that either uses more foreign exchanges or simply trades less due to increasingly stringent regulations in China. Many of China’s largest trading teams have moved abroad, making them less dependent on domestic Chinese products. In response, Huobi has turned outward, focusing on products such as institutional custody in Hong Kong, where they are inquiry to have over $ 1 billion in AUM.
On September 23, Huobi Technology announced the signing of an agreement with the Ministry of Investment and Enterprise of the Kyrgyz Republic to cooperate in the implementation of cryptocurrency trading projects. https://t.co/LCVuwYSEkG
– Wu blockchain (@WuBlockchain) September 23, 2021
Huobi also announced that it will work with the Kyrgyz government to launch additional cryptocurrency trading projects. After the news from El Salvador, it will be interesting to see if the smaller countries of Central and Southeast Asia take a more open stance on the adoption of crypto, and perhaps give some bigger Chinese players the opportunity to move and grow.