In the year since Brave New Coin last caught up with Yat Siu, Co-founder and Chairman of Animoca Brands, the company has been at the forefront of shaping the future of Web3 and beyond. As the crypto world gears up for a bustling conference season, we sat down with Yat to learn more about the company’s groundbreaking initiatives – from stablecoins to strategic partnerships – and the inside scoop on what’s next for the industry powerhouse.
First up, the Hong Kong Stablecoin project
Q: What attracted Animoca to working on a stablecoin?
A: We were drawn to the stablecoin project because it aligns perfectly with the mission of onboarding users to Web3. Stablecoins bring essential liquidity to networks and provide critical access to decentralized exchanges (DEXs) and peer-to-peer services. They also offer an alternative to traditional payment systems, which often block third-party access and charge high fees. While lower fees are a key advantage, the real opportunity lies in offering value-added services. Stablecoins play a crucial role in making Web3 more accessible and competitive, particularly within Animoca’s Mocaverse ecosystem.
Stablecoin regulation vs Crypto Exchange Regulation
Q: Do you think the regulation of stablecoins displaces or replaces the need for regulation of crypto exchanges?
A: You need both, in parallel. There is still a demand for investor education, and CEX’s are like the nursery ski slopes for new entrants. Often, their first experience of buying or trading crypto will be on a CEX, as it is relatively easy to deposit fiat funds – you don’t even need a stablecoin to do that.
Q: How does Animoca Brands envision the role of stablecoins in the broader Web3.0, digital asset, metaverse and Digital Property Rights ecosystem?
A: First of all, there has to be value in being on-chain – otherwise, why do it? Secondly, stablecoins will bring more inflows to crypto, initially via CEX platforms, but eventually P2P. Third, users will become accustomed to paying for Web3.0 goods and services with stablecoins – this also means that users will hold stablecoins for longer durations; once money is on-chain, it will stay there. Finally, access to and management of Digital Property Rights will be conducted via stablecoins, either directly or via other tokens and Web3.0 protocols
Editor’s note: HK consumers will be used to the idea of “private label” stablecoins, since local currency is issued by commercial banks. The Government, through the Hong Kong Monetary Authority, authorises three commercial banks to issue currency notes in Hong Kong: The Hongkong and Shanghai Banking Corporation Limited; the Standard Chartered Bank (Hong Kong) Limited; and the Bank of China (Hong Kong) Limited.)
MOCA and TON
Q: How is the partnership between $MOCA coin and TON driving user adoption for Mocaverse?
A: One of the main benefits is that it brings MOCA ID, which is a soul-bound reputation protocol, into the massive Telegram and TON network. With Telegram’s 900 million users, this opens up huge possibilities for Web3 adoption that we’ve never seen before. Traditional app platforms like Apple and Google often limit what you can do with NFTs and content payments, but partnering with TON lets developers create decentralized apps within Telegram, like Gamee, which is a great example of what’s possible.
LayerZero
Q: What is the significance of the LayerZero partnership and the $MOCA token launch?
A: We often get asked “when Animoca chain” but we’re NOT building own chain! Animoca is chain agnostic and supports cross-chain interoperability – specifically, MOCA ID brings omnichain capabilities and reputation. In essence, “transferable trust” which drives interoperability and network effects. We ran several token launchpads/pools (including MocaList, co-branded with CoinList) and Bybit. $MOCA is a fungible token (FT) built on the LayerZero v2 protocol and LayerZero as an issuance platform enables Animoca to facilitate 3rd party token issuance (underwriting using Animoca’s reputation).
An Animoca IPO?
Q: Is the market likely to see an Animoca Initial Public Offering any time soon?
A: While we do get asked about an Animoca IPO from time to time, the company is already a public entity with around 2,500 shareholders, mostly retail, but it’s not currently listed on any exchanges—just traded over-the-counter (OTC). There’s no certainty about an IPO, but Animoca might explore issuing a security token, which could act as a proxy stock for the crypto market, with a strong focus on Asia and Web3. However, there are still technical, operational, and regulatory barriers that need to be addressed, especially regarding traditional finance (TradFi) exchanges and security tokens. For example, when Animoca launched the Mocaverse NFT collection, we encountered challenges in automating NFT distribution to shareholders due to limitations in online and on-chain verification, as well as shareholder familiarity with digital wallets.
Bitcoin’s stablecoin evolution
Q: What are your thoughts on the recent developments regarding stablecoins being integrated into the Bitcoin ecosystem via the Lightning Network?
A: Recent Lightning developments bring utility to BTC’s core function as a store of value – but being able to pay for everyday goods and services with BTC is something of a paradox! Stablecoins on Bitcoin only makes sense if it helps to bring a different audience to crypto. For crypto natives and early adopters, who represent a new wealth class, they are looking for new ways to express themselves, via their personal interests and values. So, if these pursuits are being facilitated by enhancements to their Bitcoin experience, then it will gain traction.
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