Cryptocurrency infrastructure firm Paxos has obtained preliminary approval from the regulator of Singapore for a new entity that aims to launch a stablecoin backed by the U.S. dollar.

Cryptocurrency exchange giant OKX has started providing derivatives trading without the counterparty risk of holding assets on an exchange, building on an existing partnership with asset manager CoinShares and custody joint venture Komainu.

The digital asset market volume has seen a remarkable increase in the past two months, with a major factor behind this surge being the trading activity in Asia, especially South Korea.

Top stories in the Crypto Roundup today:

• Paxos Gets Initial Regulatory Nod to Launch USD-Backed Stablecoin in Singapore
• Crypto Trading Giant OKX Launches Off-Exchange Derivatives Trading
• Crypto Market Volume Soars Amid South Korean Trading Frenzy
• BTC Pairs Lose Liquidity as Market Depth Drops in October

Paxos Gets Initial Regulatory Nod to Launch USD-Backed Stablecoin in Singapore

Cryptocurrency infrastructure firm Paxos has obtained preliminary approval from the regulator of Singapore for a new entity that aims to launch a stablecoin backed by the U.S. dollar.

The new entity, Paxos Digital Singapore Pte. Ltd., received approval to provide digital payment token services and plans to issue a USD stablecoin that complies with the proposed stablecoin regulations of the Monetary Authority of Singapore (MAS), according to a statement.

Paxos said that once it gets the full approval, it will be able to work with enterprise clients to issue the stablecoin in Singapore. Walter Hessert, Paxos’ head of strategy, said that global demand for the U.S. dollar “has never been stronger, yet it remains difficult for consumers outside the U.S. to get dollars safely, reliably and under regulatory protections.”

The in-principle approval, Paxos said, will allow the firm to “bring its regulated platform to more users around the world.”

The MAS revealed its final framework for regulating stablecoins back in August. The framework is aimed at non-bank issued tokens that are tied to the value of the Singapore dollar or G10 currencies, such as the euro, British pound and U.S. dollar, and applies to stablecoins whose circulation exceeds 5 million Singapore dollars ($3.7 million).

Crypto Trading Giant OKX Launches Off-Exchange Derivatives Trading

Cryptocurrency exchange giant OKX has started providing derivatives trading without the counterparty risk of holding assets on an exchange, building on an existing partnership with asset manager CoinShares and custody joint venture Komainu.

Since the collapse of FTX, various crypto industry players have created ways to allow users to trade and settle off-exchange, from the security of a trusted custody setup.

Lewis Fellas, head of hedge fund solutions at CoinShares, stated that off-exchange settlement is relatively simple for spot markets. He emphasized that a key distinction lies in offering a similar mechanism for derivatives trading.

Fellas noted that the firm integrated a collateral mirroring agreement to facilitate trading the entire range of OKX products on the derivatives platform. This process, he said, is significantly more complex due to the involvement of margin financing and the need to implement risk mitigation strategies, such as addressing collateral calls when a client's position deteriorates significantly.

The main Coinshares entity and several other hedge funds, whose names Fellas did not reveal, will use Komainu custody-based derivatives trading. The settlement system will also be available on other exchanges in the future, Fellas said.

Komainu is a joint venture between Japanese bank Nomura, CoinShares, and crypto storage firm Ledger. OKX started working with the firm in June of this year.

Crypto Market Volume Soars Amid South Korean Trading Frenzy

The digital asset market volume has seen a remarkable increase in the past two months, with a major factor behind this surge being the trading activity in Asia, especially South Korea.

Data from CCData shows that the exchanges in South Korea have more than doubled their market share from 5.2% in January to 12.9% in November, while the overall trading volume also grew in October and November.

The firm’s latest Exchange Review report details that Upbit saw a major uptick in market share among centralized exchanges in October to now represent 9.16% of the trading volume on these platforms.

This figure marks the highest market share for the Korean cryptocurrency exchange since it started operating, a growth attributed to the resurgence of interest and positive trends in the altcoin market in the previous month.

Traders from South Korea are said to be particularly responsible for the rising trading volume of altcoins. The blockchain and crypto community in South Korea is well-known for its strength and enthusiasm, and many crypto firms see South Korea as a huge opportunity, as the US regulators have pushed back on the industry.

BTC Pairs Lose Liquidity as Market Depth Drops in October

The market depth of BTC pairs, declined in October. The 1% market depth across selected exchanges fell by 8.38% to 4,385 BTC, which represents a 37.2% decrease since the beginning of the year.

This contraction in market depth suggests a potential decrease in liquidity, impacting the ease with which large transactions can be executed without significantly impacting the market price.

Dig deeper into the world of cryptocurrency trading with CCData’s latest Exchange Review report.

State of the Crypto by Top Tier Exchange Volume

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