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OKX-Commissioned Economist Impact Research Brief: Institutional Investors View Increased Digital Asset Investment as Inevitable
- Asset allocation, custody, regulation and risk management are core focus areas for institutional investors when considering digital assets, including cryptocurrencies
- Liquidity, market integration and compliance are also highlighted as important dynamics for market entry
- Conclusions based on insights from interviews with business leaders in digital assets and finance, including Citi, Al Mal Capital, Skybridge Capital, VanEck and others
DUBAI, UAE, Aug. 28, 2024 /PRNewswire/ — OKX, a leading crypto exchange and Web3 technology company, today announced the release of an OKX-commissioned research brief authored by Economist Impact, entitled “Digital assets as the new alternative for institutional investors: market dynamics, opportunities and challenges,” which highlights institutional investors’ view that digital assets are an inevitable institutional opportunity, and a promising asset class that is set to grow substantially.
According to the brief, there are four crucial focus areas for institutions considering entry into the digital asset market: asset allocation, custody, regulation and risk management. Liquidity, market integration and compliance are also highlighted as important factors for market entry.
The focus areas and insights that emerged in the research brief were gathered from an Economist Impact roundtable discussion in Dubai in the second quarter of 2024 featuring senior business leaders in digital assets and finance, as well as desk research and interviews of representatives of leading financial services and investment firms, including Citi, Al Mal Capital, Skybridge Capital, VanEck and others.
Additional insights* from the research brief include:
- There is “growing consensus” among institutional investors that digital assets, such as cryptocurrencies, NFTs and tokenized private funds, have an important place in portfolio asset allocations.
- Average allocations typically are currently between 1% to 5% based on risk appetites, and this is expected to increase to 7.2% by 2027
- Institutional investors plan to ramp up portfolio allocations to crypto through a number of investment strategies, with approximately 51% of investors considering spot crypto allocations, 33% considering staking of digital assets and 32% considering crypto derivatives
- 69% of institutional investors anticipated increasing their allocations to digital assets and/or related products in the next two to three years
- The “rise of institutional-grade custodians” is ongoing and effective risk mitigation through custody is resulting in “new opportunities” for investors to access the digital asset markets.
- The institutional digital asset custody market is experiencing rapid growth, and is projected to have a compound annual growth rate of over 23% through 2028
- 80% of traditional and crypto hedge funds that invest in digital assets use a third-party digital asset custodian
- There is a positive trend of convergence of local and regional regulatory frameworks, such as the MiCA cross-jurisdictional framework in Europe, and this is creating a pathway for adoption globally.
- Exchanges have recognized the need to flexibly respond to local regulatory requirements to balance the need to grow with the need to maintain market integrity
- Stablecoin regulation is one key area of focus and regulators have created stablecoin regulatory “sandbox” environments in tier-1 markets
- Risk management is a crucial step for digital assets to become allocated into institutional portfolios. Exchanges, custodians and custody insurers should prioritize robust infrastructure and security measures.
- The adoption of new technologies, such as proof-of-reserves, as well as independent third-party audits can increase digital asset adoption among institutions
- Comprehensive risk management strategies utilized in the traditional financial sector, including value-at-risk models, scenario analysis and stress testing, and reverse stress testing should be adapted and used to safeguard institutional investments in cryptocurrency and digital assets
OKX Chief Commercial Officer Lennix Lai said: “This initiative to engage with the world’s leading institutional investors demonstrates how digital assets are rapidly being adopted in investment portfolios. The trend will only intensify if we see advancements in blockchain technology, enhanced regulatory clarity and uptake of innovative digital solutions like tokenized real world assets. Our collaboration with Economist Impact demonstrates OKX’s commitment to fostering a deeper understanding and adoption of digital assets among institutional investors worldwide.”
John Ferguson, Economist Impact’s head of globalisation, trade and finance practice said: “As digital assets gain prominence in financial markets, regulatory standardisation as well as sophisticated custody and risk management solutions tailored to digital assets are crucial considerations for institutional investors. This research brief, sponsored by OKX and developed by Economist Impact, aims to equip institutional investors with insights into recent trends, ongoing challenges and emerging opportunities around digital assets as they navigate this fast-evolving ecosystem. The findings also highlight the powerful role that technology-driven solutions can play in embedding trust in digital assets among these investors.”
OKX Institutional is OKX’s comprehensive suite of services tailored for institutional clients.
These services include advanced trading capabilities, secure custody solutions, and robust risk management tools designed to meet the specific needs of professional investors. In line with its commitment to enhance its institutional offerings, OKX launched Nitro Spreads – a venue for executing basis, futures spreads and funding rate arbitrage strategies – in July 2023. Nitro Spreads provides institutional traders on-demand access to OKX’s deep liquidity, benefiting both makers and takers while offering opportunities to minimize leg risk across markets.
Visit this page to download the report.
*Insights referenced in this release are cited in the research brief, and are comprised of (1) viewpoints from the Economist Impact roundtable session in Dubai, UAE; (2) interviews with industry experts; (3) desktop research, including industry surveys and studies. Sources for all referenced insights can be found in the research brief
About OKX Institutional
OKX Institutional is a global leader trusted by international firms and counterparties, and provides a powerful suite of institutional crypto trading solutions such as an on-demand OTC liquidity network, structured products and managed accounts. OKX infrastructure is built for institutional traders, with unified account systems, integration with leading custodians and low-latency APIs.
With industry leading monthly Proof-of-Reserves and trading volumes, deep liquidity, and 99.99% uptime, OKX combines top-tier security with speed and reliability. It offers access to over 700 spot trading pairs, 280+ derivatives instruments, and up to 125x leverage on leading futures contracts.
To learn more about OKX Institutional, visit: okx.com/institutions or contact [email protected] to accelerate your institutional crypto trading objectives.
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China’s AIMA brand electric motorbike is now in Bangladesh
DHAKA, Bangladesh, Nov. 23, 2024 /PRNewswire/ — With the popularity of electric vehicles in Bangladesh, the globally renowned AIMA brand has also arrived in Bangladesh. The esteemed DX Group has brought the AIMA F-626 to customers. This environmentally friendly battery-operated electric motorbike has already been approved by the Bangladesh Road Transport Authority (BRTA) now.
In light of the increasing popularity of electric motorcycles in the country, the internationally-leading brand AIMA has entered the market. By the end of 2023, AIMA electric two-wheelers had established a presence in over 50 countries worldwide, with 11 global production bases, including overseas factories in Indonesia and Vietnam. In 2022, AIMA collaborated with Rob Janoff, the designer of the Apple logo, to refresh the brand’s VI system with a youthful and fashionable image. In 2023, AIMA teamed up with PANTONE, the global authority in color expertise, to create the trending color of the year. As an industry leader, AIMA spearheads the electric two-wheeler sector and showcases the prowess of a leading electric two-wheeler brand on a global scale. As of March 31, 2024, AIMA’s total electric two-wheeler sales had reached 80 million units, earning certification from Frost & Sullivan, a globally recognized business growth consulting firm, as the “Global Leading Electric Two-wheeler Brand”.
Over the years, AIMA has always been a product trendsetter in the electric two-wheeler sector. As of March 31, 2024, the total sales volume of AIMA electric two-wheelers reached 80 million, and Frost & Sullivan, a world-renowned market consulting company, awarded AIMA with the market status certification of the “Global Leading Electric Two-wheeler Brand (by Sales)”.
AIMA adhere to the customer-centered product philosophy and technologies that support long-term innovation and breakthroughs. We believe that the efficiency and modern technology of the AIMA F-626 will present an excellent alternative means of communication for our customers.
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China Telecom Gulf Officially Launches in Saudi Arabia for Business
HONG KONG, Nov. 23, 2024 /PRNewswire/ — On November 21, China Telecom Gulf was officially launched in Riyadh. This milestone marks a significant step in China Telecom’s efforts to provide deep services under the “Belt and Road Initiative” and to promote the building of a “China-Arab Community with a Shared Future.” It signifies another solid advancement on China Telecom’s path toward internationalization. Mr. Liu Guiqing, Executive Director and EVP of China Telecom Corporation, delivered an opening speech, along with Mr. Fawaz, Representative of Contact Office of Chinese Companies in the KSA, Deputy General Manager of Industrial and Commercial Bank of China Riyadh Branch. Over 100 guests and leaders from the Economic and Commercial Office of Embassy of the PRC of the KSA, Saudi Telecom Company (STC), Bank of China, Huawei, and others attended to witness this momentous occasion.
In his address, Mr. Liu Guiqing emphasized China Telecom’s commitment to openness, cooperation, and mutual benefit. He expressed the company’s willingness to share its experiences in cloud-network integration, cloud transformation, intelligent operations, and technological innovation. China Telecom aims to work closely with various levels of Saudi governments, enterprises, and partners to actively participate in the development of local digital infrastructure, drive the rapid advancement of next-generation information technologies, and establish a robust bridge for cooperation between China and Saudi Arabia in the field of information technology. Leveraging its extensive resources and global operational capabilities, China Telecom plans to bring its strengths in 5G, cloud computing, artificial intelligence, and other fields to provide innovative, high-quality communication products and services to Saudi enterprises, institutions, and consumers.
Mr. Fawaz extended his warm congratulations on the opening of China Telecom Gulf. He highlighted that as a leading global provider of communication services, China Telecom possesses abundant cloud-network resources and mature international service capabilities. The establishment of China Telecom Gulf is a significant step toward supporting the digital transformation of businesses in the region. He expressed confidence that through joint efforts, the company will seize opportunities in the digital era and contribute to Saudi Arabia’s socio-economic development and practical cooperation between China and Saudi Arabia in various fields.
China Telecom showcased its global resources, business capabilities, and its investments and partnerships in the Middle East and Africa. Key services introduced included eSurfing Cloud, computing power solutions, quantum technology, and customized 5G networks. Currently, China Telecom operates branches in 42 countries and regions worldwide, owns 53 international submarine cables, and manages 27 self-operated Internet Data Centers (IDCs). Its cloud-network integrated infrastructure and customer-centric digital service systems provide coverage across the globe.
During the event, China Telecom Gulf signed strategic cooperation agreements with Saudi Telecom Company (STC), Huawei Saudi Arabia, and Baud Telecom Company. The parties committed to deep collaboration, leveraging their respective strengths to provide optimized and convenient digital experiences to Saudi customers.
The establishment of China Telecom’s presence in Saudi Arabia marks a major milestone in the company’s entry into the Middle Eastern communications market, representing a key development in its global strategy. Moving forward, China Telecom Gulf will leverage China Telecom’s robust digital infrastructure and resource integration capabilities. We will collaborate closely with local Saudi enterprises, Chinese businesses expanding internationally, and global companies to strengthen cooperation and enhance exchanges. The company aims to contribute to the growth of Sino-Saudi and Middle Eastern industrial cooperation, continuously offering more smart solutions for the development of the Middle East’s digital economy, while striving to become a world-class provider of digital and intelligent technology services.
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Redefining Financial Frontiers: Nucleus Software Celebrates 30 Years with Synapse 2024 in Singapore
SINGAPORE, Nov. 23, 2024 /PRNewswire/ — The thriving India–Singapore partnership in banking and technology reached a new milestone as Nucleus Software celebrated 30 years of transformative innovation at Synapse 2024, held in Singapore. The event underscored the company’s role in redefining financial services across Southeast Asia (SEA) and the globe, bringing together leaders in finance and technology to explore a shared vision for the future of banking.
Synapse 2024 celebrated 30 years of Nucleus Software’s leadership in driving transformative change across Singapore and Southeast Asia’s financial ecosystem. The event also shone a spotlight on the Global Finance & Technology Network (GFTN), an initiative supported by the Monetary Authority of Singapore (MAS) to champion responsible technology adoption. The event highlighted the deepening synergies between India and Singapore, driven by their shared commitment to innovation, cross-border collaboration, and financial inclusion. As the financial services sector undergoes rapid evolution with advancements in artificial intelligence, blockchain, and digital banking, these partnerships are setting the stage for a more connected, resilient, and inclusive global ecosystem.
Vishnu R. Dusad, Co-founder and Managing Director of Nucleus Software, reflected on the milestone: “For over 30 years, we’ve had the privilege of aligning our journey with Singapore’s ascent as a global financial powerhouse. Back in 1994, when we chose to go East instead of West, it was a bold and emotional decision—guided by our belief in Singapore as a hub for innovation and collaboration. We saw then what remains true today: Singapore is at the heart of the global financial landscape, a place where new ideas take root, and partnerships thrive.”
The event brought together a distinguished array of participants, highlighting the transformative potential of India–Singapore collaboration. Mr. Piyush Gupta, CEO of DBS Group and the Guest of Honor, set the tone for the event with his opening remarks, emphasizing the transformative role of big tech in reimagining scalable, customer-centric financial services in the digital age.
Following his address, key speakers enriched the discussions with their insights. Mr. Sopnendu Mohanty, Chief Fintech Officer at the Monetary Authority of Singapore and Group CEO-Designate of The Global Finance & Technology Network (GFTN), underlined the importance of fostering responsible technology adoption and building inclusive financial ecosystems. Mr. Vinod Rai, globally respected public policy expert, Distinguished Visiting Research Fellow at the National University of Singapore, and former Comptroller and Auditor General of India, shared his perspectives on governance and policy frameworks in financial systems. Mr. S.M. Acharya, Chairman of Nucleus Software and former Defence Secretary of India, offered a visionary outlook on leveraging technology to modernize and secure banking frameworks. Finally, Mr. Pieter Franken, Co-founder and Director of GFTN (Japan), a global FinTech pioneer and deep tech innovator, discussed the future of decentralized finance and its implications for the financial sector.
The event showcased the transformative role of technology in global financial systems, emphasizing innovations that set benchmarks for scalability and inclusivity. Panelists discussed the importance of localized solutions, the challenges of cross-border integration, and leveraging dual business models to optimize capital and foster public participation. The dialogue highlighted the need for common standards, unified frameworks like APIs, and collaborative efforts to accelerate financial inclusion and drive global connectivity in the digital age.
For 30 years, Nucleus Software has consistently introduced advanced lending and banking solutions that support financial institutions’ evolving needs in Singapore and South East Asia. Driven by lean development methodologies like Acceptance Test-Driven Development (ATDD) and Continuous Integration/Continuous Delivery (CICD), Nucleus Software continues to push boundaries in efficient, flexible, and secure financial technology.
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