In our latest edition of Crypto Finance Asia (Access Asia’s Linkedin newsletter covering the latest developments, innovations and investments in Asia’s crypto and blockchain space), we report on a number of interesting news stories in the crypto and blockchain space. South Korea elects a pro-crypto President who promises aggressive reforms; the issuer of the USDC stablecoin debuts on the New York Stock Exchange to a frenzy of buying reminiscent of a classic crypto pump; Hong Kong is gearing up for a major policy shift to allow crypto derivatives trading, while behind the scenes a little-known Japanese firm is buying up 1% of the supply of Bitcoin. Any investor of Bitcoin – and anyone on the sidelines – should be paying attention to this fast growing trend of corporations stockpiling Bitcoin.
Let’s start with Japan’s MetaPlanet – the little engine that could
The Tokyo-based investment firm that is trying to accumulate as much Bitcoin as possible has just announced an aggressive $5.4 billion equity raise to purchase more Bitcoin by selling 555 million shares over the next two years. “Thrilled to announce Asia’s largest-ever equity raise to buy bitcoin — again! This time: $5.4 billion to accelerate our bitcoin strategy,” Metaplanet’s CEO Simon Gerovich posted on X on Friday.
The “555 Million Plan,” as Metaplanet describes it, follows on from its prior “210 Million Plan,” with the company now targeting holdings of 30,000 BTC by the end of 2025 from 10,000 BTC previously, 100,000 BTC by the end of 2026 from 21,000 BTC, and 210,000 BTC by the end of 2027 to join the Bitcoin 1% club — referencing holdings of 1% or more of Bitcoin’s total 21 million supply.
This company is on a serious mission!
Stablecoin fever: Bridging crypto infrastructure to traditional finance
Shares of the USDC stablecoin issuer Circle debuted on the New York Stock Exchange on Thursday under the ticker CRCL. Initially priced at $31 a share, the stock more than trippled in price within minutes and on Friday reached a high of $123.51. Circle’s impressive debut is a clear sign of excitement, optimism and opportunity in the stablecoin sector, particularly in light of the expected passage of Washington’s GENIUS Act, a bill that would establish regulatory clarity for stablecoin issuers and potentially encourage more mainstream adoption in the United States.
Stablecoins – cryptocurrencies pegged to a fiat currency like the USD or a commodity like Gold – are gaining tremendous traction in traditional finance as they offer a bridge between it and crypto infrastructure, and solve payment problems with ease. In 2024, crypto stablecoins facilitated more than $27.6 trillion in transactions — more than Visa and Mastercard combined — according to a report from the World Economic Forum. According to Fortune Magazine, tech giants including Apple, Airbnb and X are in early talks with crypto firms to add stablecoin payments to reduce fees. Moreover, Visa, Mastercard, PayPal, and Stripe are all embedding stablecoins for instant, global payments. This is not a crypto niche sector – this is the backbone of a new financial system.
Hong Kong set to launch crypto derivatives trading
Hong Kong appears set to allow trading in crypto derivatives for professional investors, a massive market (much more than Spot trading) and a missing piece in Hong Kong’s attractive crypto setting. The proposal to legalize crypto derivatives trading forms part of Hong Kong’s Securities and Futures Commission (SFC) broader plan to expand the range of products and services around virtual assets as the territory seeks to solidify its position as a global crypto hub. Hong Kong is also a launchpad and “test territory” for crypto policy in China. This is a big deal.
South Korea elects pro-crypto President
Korean voters have just elected a pro-crypto president, although this was to be expected as the two top candidates in last Tuesday’s snap-presidential election were both crypto advocates. Lee Jae-myung won the presidency on June 4 with 49.42% of the vote, defeating right-wing candidate Kim Moon-soo, who got 41.15%. Lee plans to make strong reforms in the crypto sector, which includes allowing local adoption of spot crypto ETFs, establish a Korean won-pegged stablecoin market, and continue regulatory reforms to finish the second legislation to the two-part digital asset regulatory framework, where the upcoming law will focus on stablecoin regulation and transparency mandates for exchanges. Moreover, Lee plans to allow the nation’s pension fund to invest $884 billion into cryptocurrency. This is no small number.
This is great news for the crypto industry globally as South Korea hosts one of the world’s largest cryptocurrency markets, characterized for its focus on altcoin trading. At the end of last year, South Korea had 9.7 million crypto exchange users, which is nearly 20% of its total population, according to the country’s Financial Services Commission (FSC).
Developments in South Korea will also likely have a spill-over effect to other countries in the region. As a technological powerhouse that yields significant influence in the region, policy changes and positive regulatory measures in the crypto space will likely be used as an example for other regional countries to emulate.