Seven Banks in Hong Kong Apply to Launch Tokenized Deposits

Original Title: Hong Kong Web3 Daily Must-Read: Ethereum Fusaka Upgrade Activated on Final Testnet, Seven Hong Kong Banks Apply to Launch Tokenized Deposits

Source: Hong Kong Web3 Media Techub News

Compiled by: Nona, Techub News

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Hong Kong

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Insider: New Huo Technology Has Launched Virtual Asset OTC Trading Business for Hong Kong Professional Investors in Accordance with Five Categories of 'Recognized Providers' Regulations

An insider from New Huo Technology told Techub News that the Hong Kong-listed company New Huo Technology Holdings Limited (Stock Code: 1611.HK) has launched some virtual asset over-the-counter (OTC) trading business in Hong Kong for professional investors, in accordance with the Stablecoin Ordinance (Chapter 656) (the Ordinance) implemented on August 1, 2025, providing OTC trading services for currencies such as USDT and USDC to qualified professional investors.

Hong Kong Secretary for Justice: Issuance of Stablecoins Pegged to Hong Kong Dollar Value in or Outside Hong Kong Must Obtain a License

Hong Kong Special Administrative Region Secretary for Justice Lam Ting-kwok stated that virtual asset trading is becoming increasingly active, with most transactions conducted through virtual asset trading platforms, and many investors placing virtual assets on trading platforms to earn returns. In recent years, digital assets pegged to fiat currencies, 'stablecoins', have rapidly emerged. Anyone issuing fiat stablecoins in Hong Kong or issuing fiat stablecoins claiming to be pegged to the Hong Kong dollar value in or outside Hong Kong must apply for a license from the Monetary Authority. Relevant persons must comply with regulations on reserve asset management and redemption, including proper segregation of client assets, maintaining a sound stabilization mechanism, etc.

Hong Kong Monetary Authority: Seven Banks Hope to Launch Tokenized Deposits Within the Year

Hong Kong Monetary Authority Assistant Chief Executive (Financial Infrastructure) Chow Man-ching said that according to the intentions received by the HKMA, seven banks currently hope to launch tokenized deposits this year. Additionally, in response to market rumors that the HKMA is not advancing the retail application of the digital Hong Kong dollar, HKMA Deputy Chief Executive Eddie Yue responded: 'Have not ruled out the retail application of stablecoins, believe there are great opportunities for using stablecoins in retail, actual usage still depends on commercial institutions' decisions.'

Aptos Labs, in Collaboration with Boston Consulting Group and Hang Seng Bank, Completes 'Digital Hong Kong Dollar+' Pilot and Research, Over 60% of Investors Plan to Double Their Investment in Tokenized Funds

Aptos Labs and Boston Consulting Group (BCG) jointly released the 'Hong Kong Digital Currency and Tokenized Asset Survey' report, covering over 500 retail fund investors. Among them, 61% of retail investors from Hong Kong and Mainland China indicated plans to double their investment proportion in tokenized funds, primarily attracted by the higher liquidity, transparency, 24/7 trading, and programmability features provided by tokenization technology.

2025 Hong Kong October Event Highlights

We have specially compiled a selection of noteworthy events in Hong Kong's crypto field for October, which will open a window to the future of Web3 for you.

Regulation/Macro

U.S. Government Shutdown Continues, Senate Rejects Temporary Funding Bill for the 13th Time

On October 28 local time, the U.S. Senate voted 54 to 45, again failing to pass a procedural vote to advance the 'Fiscal Year 2025 Continuing Appropriations and Extension Act' aimed at ending the government shutdown. The bill, passed by the House of Representatives, proposed to temporarily restore government operations at current funding levels and required 60 votes in the Senate to proceed. This was the 13th vote on the bill, still not reaching the required threshold, meaning the U.S. government shutdown will continue.

Beijing Procuratorate Releases USDT Cross-Border Illegal Foreign Exchange Trading Case, Involving Over 1.1 Billion Yuan, 5 People Sentenced

The Beijing People's Procuratorate released the 'High-Quality Financial Procuratorial Performance Typical Cases' (2024-2025), with a total of 13 cases in this batch, involving major financial business areas such as banking, insurance, credit, securities, and foreign exchange. In terms of safeguarding financial security and opening up, a typical case released involves illegal foreign exchange trading using virtual currency as a medium, with the amount involved exceeding 1.1 billion yuan.

Project/Company Updates

dYdX Community Proposes Using 100% of Three-Month Protocol Fees for DYDX Buyback

The dYdX community has proposed a three-month trial plan, from November 1, 2025, to January 31, 2026, to use 100% of the dYdX chain's net trading fees for DYDX buybacks to enhance token value. During this period, rewards for validators and stakers will be paid from the community treasury to maintain network security while avoiding fee dilution. This proposal aims to test higher price-to-earnings ratios and market cap efficiency, and will automatically revert to the original allocation ratio after the trial. It is estimated that approximately $5 million to $10 million worth of DYDX tokens can be repurchased within three months, with the proposal planned to be submitted on November 3.

U.S. First Solana Spot ETF Nets $69.45 Million Inflow on First Day, Net Asset Size Reaches $289 Million

The U.S. first Solana spot ETF, Bitwise Solana Staking ETF (Stock Code BSOL), had a net inflow of $69.45 million on its first day of listing, with a trading volume of $57.91 million. BSOL had an initial subscription size of $223 million before listing, and after the first day of trading, the total net asset value reached $289 million, with the SOL net asset ratio (market cap as a percentage of SOL's total market cap) reaching 0.27%.

Ethereum Fusaka Upgrade Activated on Final Testnet, Mainnet Launch Scheduled for December 3

Ethereum's next hard fork, Fusaka, went live on the Hoodi testnet on Tuesday, marking the final step before mainnet activation, expected to launch by the end of the year. Fusaka aims to achieve backend improvements to enhance the scalability, efficiency, and security of the largest smart contract blockchain, including increasing the block gas limit, expanding 'blob' capacity, and introducing new node security features. The upgrade includes at least ten Ethereum Improvement Proposals, most notably EIP-7594, which introduces Peer Data Availability Sampling (PeerDAS), allowing validators to sample data fragments instead of full 'blobs', thereby improving data availability for Ethereum's Layer 2 ecosystem.

OceanPal Completes $120 Million Financing, Collaborates with NEAR Foundation to Launch SovereignAI and Digital Asset Treasury

OceanPal Inc. announced today the completion of a $120 million public company private investment (PIPE) transaction for the purchase and sale of common stock and/or pre-funded warrants. The company plans to use the net proceeds from this transaction to implement a digital asset treasury strategy through its wholly-owned subsidiary SovereignAI Services LLC ('SovereignAI'), which focuses on commercializing NEAR Protocol, a blockchain platform designed for AI use cases.

Kalshi Sues New York State Regulator Over Ban on Sports Contracts

Prediction market platform Kalshi filed a federal lawsuit against the New York State Gaming Commission on October 28, 2025, challenging the state's decision to ban its sports-related contracts. As a CFTC-registered Designated Contract Market (DCM), Kalshi argues that under the Commodity Exchange Act, the CFTC has 'exclusive jurisdiction' over derivatives on federally regulated exchanges, and New York's intervention violates federal law. The company self-certified sports event contracts with the CFTC earlier this year, allowing users to make financial bets on game outcomes. Kalshi is seeking emergency relief to prevent New York from enforcing its cease order.

Polymarket Plans to Return to U.S. Market in Weeks, Focusing on Sports Predictions

Polymarket plans to return to the U.S. market in weeks, focusing on providing sports predictions. It was previously expelled from the U.S. market in 2022 and paid a $1.4 million fine. Some insiders indicated that initial trading may start before the end of November but will not be open to all users. The launch timing is expected to allow Polymarket to capture more trading volume during the peak seasons of U.S. football and basketball.

Tether Plans to Leave Fairshake and Seek Alternative Political Donation Channels, and Plans to Establish Entity in U.S.

Tether is considering establishing an entity in the United States and participating in political donations related to the 2026 U.S. elections. Tether CEO Paolo Ardoino expressed dissatisfaction with the crypto industry's main political action committee (PAC) Fairshake, saying it ultimately 'serves the interests of one particular company,' but he declined to name the company.

SharpLink Plans to Deploy $200 Million in Ethereum on Linea

SharpLink Gaming (SBET) will deploy $200 million in Ethereum on the Linea blockchain through strategic partnerships with ether.fi, EigenLayer, and Anchorage. The company stated that this move will provide it with multiple revenue streams, including native staking rewards, direct incentives from Linea and EtherFi, and restaking rewards through EigenCloud's Autonomous Validation Services (AVSs).

Depth & Foresight

From Attention Economy to Embedded Economy: How Prediction Markets Will Reshape the Internet

When prediction markets are embedded in media, how will this dynamic evolve? I don't know, but for now, the trend is clear: the underlying components for the advancement of the attention economy are in place, and we are witnessing the birth of the transaction economy.

Government Shutdown, White House Demolition: Trump's $300 Million 'Private Dining Room' and Its Crypto Donors

Over the past decade, the crypto industry has always prided itself as a 'decentralized revolution,' opposing the monopoly of traditional power. Now, they have entered a corner of history with a 'donation,' and with a bill, proven that the decentralized future ultimately needs a center.

Opinion

Fusaka Upgrade Successfully Activated on Final Testnet Hoodi, What Changes Will It Bring to Ethereum?

The Fusaka upgrade, as a key step in Ethereum's 2025 roadmap, will lay the foundation for the subsequent Glamsterdam upgrade. By continuously optimizing the underlying mechanisms, the Ethereum network will gradually achieve higher levels of scalability and efficiency, and the future remains promising.

ChinaAMC and Bitwise Launch Solana ETFs Successively, Is the 'Listing Wave' of Altcoin ETFs Coming?

Previously, the market generally expected altcoin ETFs such as Solana and XRP to be listed one after another, but the listing of Hong Kong's first Solana spot ETF successfully attracted the attention of many investors, focusing market attention more on Solana ETFs. Meanwhile, progress related to Solana ETFs in the U.S. market has shown a more positive trend.

From Advertising to Micropayments: How x402 Will Change the Future of Internet Content Consumption?

x402 is a standard built on the spirit of HTTP 402 status code, creating a unified interface for: consumers to pay for content; publishers to charge for content; and without intermediaries (Visa/Mastercard), thus making 'agent-based micropayments' possible.

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