March 2024: Crypto Market Development

March 2024: Crypto Market Development

April 8, 2024

Over the past month, the cryptocurrency market witnessed an interesting development as Bitcoin's volatility surpassed that of Ether. As anticipation builds towards the forthcoming Bitcoin halving event, Bitcoin's 30-day historical volatility rose to nearly 60%, outpacing Ether by around 10 percentage points. This marked the widest spread between the two cryptocurrencies in at least a year. The development underscores the heightened market sensitivity to the inflows into spot ETFs and the impending halving of the Bitcoin blockchain. Traders have been closely monitoring the activity in spot ETFs, which has led to greater volatility not only in Bitcoin but also in the broader crypto market. Furthermore, the decreasing likelihood of an ETH ETF approval has had an impact on Ether traders. As we approach the halving event scheduled for April 21, market participants remain on edge, contemplating the potential for a supply-demand imbalance that could drive up Bitcoin prices, juxtaposed against speculations of a "sell-the-news" pullback after the event. 

Announcements 

In this monthly recap, we examine the challenges surrounding Hong Kong's VATP licensing regime, as our CEO Alessio Quaglini expresses concerns about compliance costs and competitiveness relative to Singapore. We proudly showcase Hex Trust's attainment of the SOC 1 Type II Certification, which underscores our commitment to robust financial controls. Our Head of Custody, Giorgia Pellizzari, engaged in high-level discussions on the future of crypto wallets within a broker-dominated landscape at the WOW Summit. Alessio's optimistic outlook on Hex Trust's future in the virtual assets market is also highlighted, alongside notable partnerships with Synnax Technologies, Kiln, WalletConnect, and BuildonKlaytn. Lastly, we touch upon recent events that emphasize Hex Trust's dedication to fostering a strong team dynamic and promoting diversity, while providing insights into our latest product developments, including the introduction of new tokens and enhanced user experiences.

Hong Kong's VATP Licensing Regime Faces Challenges, Hex Trust CEO Raises Concern

Alessio Quaglini, in a thought leadership piece featured in the South China Morning Post (SCMP), sheds light on the shortcomings of Hong Kong's VATP licensing regime compared to Singapore. With only 24 applications received in Hong Kong, concerns arise regarding compliance costs and competitiveness. Alessio suggests that regulatory limitations may hinder the global operations of crypto firms in Hong Kong, while Singapore has received 70 applicants under a similar regulatory framework. The approaching May 31 deadline for crypto exchanges to submit applications has sparked concerns about high compliance costs potentially impeding industry growth.

Read more about Alessio’s thought leadership piece here

Hex Trust Successfully Obtains SOC 1 Type II Certification from Deloitte, Demonstrating Strong Financial Controls

Hex Trust has successfully obtained the SOC 1 Type II Certification from Deloitte, reaffirming its commitment to robust financial controls and regulatory compliance. This accomplishment demonstrates Hex Trust's dedication to delivering trusted digital asset financial services to institutional investors, protocols, foundations, and the Web3 ecosystem. The certification, which followed a six-month inspection by Deloitte based on the ISAE 3402 auditing standard, validates Hex Trust's organizational controls. Hex Trust has consistently met stringent regulatory and compliance standards, previously receiving certifications such as SOC 1 Type I, SOC 2 Type I & Type II, and Cloud Security Alliance (CSA) STAR Level 1 & 2. The SOC 1 Type II Certification further establishes Hex Trust as a leader in the industry, emphasizing their unwavering commitment to integrity, trust, and accountability.

Read more about our latest certification here.

Alessio Optimistic About Future Prospects in the Virtual Assets Market

Alessio Quaglini, in another feature article in the SCMP, expresses optimism for the company’s future prospects amidst the recovering virtual asset market. He highlights the positive trends of increasing trading volumes and growing interest in digital assets. Hex Trust has set its sights on achieving profitability in 2024 by implementing cost-cutting measures throughout 2023, and the company is also considering opportunities for a new funding round. However, Alessio acknowledges potential regulatory challenges, particularly the challenges surrounding  over-the-counter (OTC) services, which raise concerns about Hex Trust's operations in Hong Kong. If OTC operations are required to go through a cryptocurrency exchange, it may necessitate the relocation of Hex Trust's OTC business.Despite potential regulatory challenges, Alessio’s positive outlook reflects his confidence in the company's ability to adapt and thrive in a dynamic industry.

Read the full interview here.

Partnerships 

Hex Trust Supports Synnax Technologies in $1 Million Pre-Seed Fundraising Round

Hex Trust supported Synnax Technologies in their successful USD 1 million Pre-Seed Fundraising round. Synnax is a protocol that aggregates credit intelligence and generates impartial and forward-looking credit ratings using a decentralized consensus model. Hex Trust joined other global investors, such as Edessa Capital, Kenetic Capital, and Bitscale Capital, in backing Synnax's vision of advancing intelligent Web3 financial infrastructure. This partnership highlights our commitment to fostering transparent and efficient credit markets.

Hex Trust Joins Forces with MANTRA in $11 Million Funding Round to Drive Asset Tokenization Innovation

In another notable collaboration, Hex Trust joined forces with MANTRA, a prominent player in the asset tokenization space. MANTRA secured $11 million in funding, led by Shorooq Partners. Hex Trust's participation in this funding round demonstrates their commitment to driving innovation and establishing regulatory-compliant infrastructure for real-world asset tokenization. The partnership between Hex Trust and MANTRA holds the potential to drive significant advancements in asset tokenization, creating new opportunities for investors and benefiting the broader blockchain ecosystem.

Institutional-Grade Staking Services Launched as Hex Trust Partners with Kiln

Hex Trust has also partnered with Kiln to offer institutional-grade staking services on various protocols, including Injective and Ethereum. This collaboration aims to provide secure, scalable, and user-friendly staking experiences tailored for institutional investors. By combining Hex Trust's robust custody services with Kiln's institutional-grade staking infrastructure, the partnership enhances security, accessibility, and active participation in blockchain technologies within the institutional space. Hex Trust's comprehensive approach to custody and staking positions them as a key player in institutional staking, with plans to support additional prominent Proof-of-Stake blockchains like Ethereum. This partnership exemplifies Hex Trust's commitment to breaking down barriers and facilitating institutional engagement in the world of blockchain and DeFi.

Read more about our partnership with Kiln here.

Hex Trust Teams Up with WalletConnect to Enhance User Experience in the Web3 Ecosystem

Hex Trust has also partnered with WalletConnect to enhance the user experience in the Web3 ecosystem. This collaboration allows seamless access for Hex Trust users to a wide range of applications across EVM chains, including trading, DeFi, NFTs, and gaming. The integration introduces important capabilities such as transaction signing, enabling secure and reliable transaction processes, as well as authentication through signature requests, simplifying the login and verification process for users. This partnership aims to enhance convenience and security, elevating the overall Web3 interaction experience for Hex Trust users.

Read more about our partnership with WalletConnect here.

Hex Trust Strengthens Commitment to Klaytn's Blockchain Ecosystem as a Partner in BuildonKlaytn

Lastly, Hex Trust has strengthened its commitment to the Klaytn ecosystem through its partnership with Klaytn. As a leading digital asset custodian with a global presence and over 250 institutional clients, Hex Trust has actively supported KLAY custody and staking since 2021. Hex Trust offers comprehensive institutional custody services, including 24/7 OTC trading, native staking, and treasury management solutions. Through this partnership within the IOK Program, Hex Trust aims to deepen collaboration by participating in shared projects and facilitating connections between banks for fiat transfers, custody, and KYC procedures. Additionally, Hex Trust will explore integrations with stablecoins and other major coins, contributing to the growth and innovation of the Klaytn ecosystem.

For more information, contact the Hex Trust team at enquiries(at)hextrust.com.

Events and Team Updates

Giorgia Pellizzari Discusses Future of Crypto Wallets at WOW Summit

Our Managing Director and Head of Custody, Giorgia Pellizzari, took the stage at the WOW Summit alongside industry leaders to discuss the future of crypto wallets in a broker-dominated world. With a focus on seamless integration with traditional financial systems and innovative technologies like XRPL and EURS, Giorgia provided valuable insights into HexTrust's approach. She emphasized our commitment to providing universal custody solutions, tailored offerings, and strategic advisory services. Giorgia acknowledged the significance of individual crypto wallets in this evolving landscape and underscored the role of custodians in bridging the gap between traditional finance and the digital asset ecosystem. Addressing security, compliance, and regulatory challenges, she highlighted the importance of innovation, accessibility, security, and privacy. Giorgia's participation in this event showcased HexTrust's dedication to staying at the forefront of industry trends and empowering clients in the digital asset space.

Hex Trust Celebrates Team-Building, Appreciation, and Promotions: Bowling Night, International Women's Day, and Congratulating Newly Promoted Members

Hex Trust has had an eventful and rewarding month, filled with team-building activities, appreciation, and notable promotions. The team came together for a memorable evening of camaraderie and friendly competition on Bowling Night, which sparked enthusiasm about the possibility of establishing an office bowling league. On Employee Appreciation Day, Hex Trust expressed genuine gratitude to its team members, recognizing their dedication and invaluable contributions to the company's success. Furthermore, the company reaffirmed its commitment to diversity and inclusion on International Women's Day, celebrating women's achievements and advocating for equal opportunities in the finance industry. In addition to these celebrations, Hex Trust extended congratulations to its newly promoted team members, acknowledging their well-deserved promotions as a testament to the company's culture of excellence and their unwavering dedication to serving clients. These events and promotions reflect Hex Trust's ongoing commitment to fostering a positive and inclusive work environment.

Product Updates: March 2024 

March saw the introduction of three new ERC-20 tokens: BBL, GAMEE, and USDX, expanding the range of options available for diversifying digital asset portfolios. The integration of Xion, a new blockchain, facilitated seamless asset transfers through deposits and withdrawals, while also offering users the opportunity to participate in staking by running their own validators. The tokens had a stealth launch and their availability to the public will be determined internally. Enhancements were made to the user experience, including the ability to fetch total estimated transaction fees for Bitcoin transactions via the API and the implementation of email notifications for all withdrawals. Additionally, transaction cancellation functionality for EVM chains was introduced, providing users with greater flexibility and control.

Users can reach out to the support team at support@hextrust.com for further information and assistance.

Till next time. 

The Hex Trust team

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