CME Is Now the Second-largest Bitcoin Futures Exchange

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Daily News:

Zodia Launches in Hong Kong

CME Is Now the Second-largest Bitcoin Futures Exchange

Large Thailand Bank buys $103M stake in Crypto Exchange

Zodia Launches in Hong Kong:

• Zodia Custody, a crypto security firm under Standard Chartered and co-owned with Northern Trust and SBI Holdings, is extending its services to Hong Kong, following recent expansions into Japan, Singapore, and Australia. This move strengthens its position in the Asia-Pacific institutional crypto custody sector.

• CEO Julian Sawyer highlights the unique appeal of Hong Kong, where the demand for cryptocurrency services is predominantly institutional. The local government and regulators are proactively fostering a crypto-friendly environment, aiming to establish Hong Kong as a leading hub in the digital asset industry.

• Zodia's phased expansion in Hong Kong will initially cater to local clients with a select range of crypto assets. The company is actively engaging with the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority to navigate regulatory approval, ensuring compliance in a region noted for its progressive stance on digital assets amidst neighboring China's stringent anti-crypto policies.

CME Is Now the Second-largest Bitcoin Futures Exchange:

• The Chicago Mercantile Exchange (CME) has risen to the second-largest spot in the ranking of bitcoin futures and perpetual futures exchanges by open interest, with a notional open interest of $3.54 billion. This surge in activity and market position is reminiscent of the early phases of the 2020-21 cryptocurrency bull market, and it places CME just behind the leading offshore unregulated exchange, Binance.

• CME has experienced significant growth in its bitcoin futures contracts, surpassing the 100,000 BTC mark in open interest for the first time. Additionally, its market share in BTC futures has reached a new all-time high of 25%. This growth is indicative of increased participation from institutional investors, which is further supported by a 27% increase in bitcoin’s value amidst macroeconomic uncertainty and optimism for spot ETFs.

• While the CME's growth is significant, André Dragosch from Deutsche Digital Assets provides an alternative perspective, suggesting that the increase in CME’s market share may be due to the unwinding of bearish bets on offshore exchanges rather than an influx of long futures positions. This highlights the complexity and multifaceted nature of the cryptocurrency futures market.

Large Thailand Bank buys $103M stake in Crypto Exchange:

• Kasikornbank (K-Bank), Thailand's fourth-largest bank, has acquired a majority stake in the parent company of Satang, a local crypto exchange, through its fully-owned subsidiary, Unita Capital. The acquisition is valued at 3.7 billion Thai baht (approximately $102.8 million). This strategic move signals K-Bank’s increasing involvement in the cryptocurrency and blockchain sector, following the trend of traditional banking institutions exploring digital asset ventures.

• Unita Capital is expanding its operations in the digital asset space by establishing three new subsidiaries: Orbix Custodian, Orbix Invest, and Orbix Technology & Innovation Company Limited, which will respectively focus on digital asset custody, digital asset fund management, and blockchain infrastructure development. This demonstrates K-Bank’s commitment to offering a comprehensive range of services in the digital asset ecosystem.

• The acquisition by K-Bank comes amidst a period of technological innovation and investment in the financial sector by major Thai banks, as seen with their launching a $100 million tech venture fund focusing on AI, Web3, and deep tech startups. Siam Commercial Bank (SCB), another major Thai bank, which has established a blockchain and digital asset subsidiary and initiated significant ventures in the digital asset domain. However, K-Bank’s successful acquisition of Satang sets it apart, as SCB faced regulatory challenges that hindered a similar acquisition attempt with Bitkub, another Thai-based crypto exchange.

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