Today in crypto, Hong Kong joined Canada, Brazil and Kazakhstan in approving a spot Solana exchange-traded fund (ETF), further widening the gap with the US, which has yet to authorize one. Tether’s USDT stablecoin has now reached 500 million people, and the US Federal Reserve is exploring a new “payment account” model to let fintechs connect directly to the banking system.
Hong Kong approves its first spot Solana ETF ahead of US
Hong Kong approved its first spot Solana ETF, marking the third spot crypto ETF approved by the city after Bitcoin and Ethereum.
On Wednesday, the Hong Kong Securities and Futures Commission (SFC) granted approval for the China Asset Management (Hong Kong) Solana ETF, which will be listed on the Hong Kong Stock Exchange, according to a report by the Hong Kong Economic Times.
The product will include both Chinese yuan counters and US dollar counters, meaning it can be traded and settled in both currencies. Each trading unit will consist of 100 shares, with a minimum investment of about $100. The fund is expected to debut on Monday.
The ETF’s virtual asset trading platform will be operated by OSL Exchange, while OSL Digital Securities will serve as sub-custodian. ChinaAMC has set a management fee of 0.99%, with custody and administrative fees capped at 1% of the sub-fund’s net asset value, resulting in an estimated annual expense ratio of 1.99%.
ChinaAMC (Hong Kong) is already known for launching Asia’s first Bitcoin (BTC) and Ether (ETH) spot ETFs, both of which were approved earlier this year.
Tether’s USDT reaches 500 million users, touching 6.25% of world population
US dollar-pegged stablecoin Tether hit its 500 millionth user on Tuesday, offering a means to transact and save for those who have been excluded by the traditional banking system.
“Likely the biggest financial inclusion achievement in history,” Tetherj CEO Paolo Ardoino wrote in a post on X.
Tether said the figure represents 500 million “real people,” not simply Tether (USDT) wallets, suggesting its stablecoin has now been used by around 6.25% of the world’s population.
The World Bank Group estimates there are 1.4 billion adults who don’t have access to a bank account globally. Crypto is one potential solution to the problem, as anyone with a phone can download a crypto wallet to receive money and store funds securely.
Crypto can also be beneficial for those who live in high-inflation countries or nations where the risk of having one’s funds seized is real.
Fed mulls “skinny” payment accounts to open rails for fintech, crypto firms
The US Federal Reserve is considering the introduction of a new type of payment account that would make it easier for smaller companies to participate in the central bank’s payment system, signaling the end of the crypto industry’s banking access challenges.
The newly floated “payment accounts” would seek to grant full access to fintech companies seeking to utilize the Fed’s payment services, which are currently reserved for large banks and financial institutions through the Fed’s “master accounts.”
“I believe we can and should do more to support those actively transforming the payment system,” said Fed Governor Christopher J. Waller during his speech at the Payments Innovation Conference on Tuesday, adding:
“To that end, I have asked Federal Reserve staff to explore the idea of what I am calling a “payment account.”
The payment accounts would be available for all institutions legally eligible for an account that currently conducts payment services through a third-party bank.
The “skinny” master accounts would provide access to the Fed’s payment rails, while “controlling for various risks to the Federal Reserve and the payment system,” Waller said.
