Presently, the Ledger Wallet supports Tether [USDT] for its 2 hand-held storage merchandise, the Ledger Nano and Ledger Blue, however it intends to feature the U.S. dollar-linked cryptocurrency to its institutional vault service.
Despite Tether [USDT]’s recent loss of parity with the USD amid revived questions on its issuer’s reserves, Benjamin Soong, Ledger’s new head of operations for the Asia-Pacific region.
“One thing that’s slightly distinctive in China and South Korea is the demand for USDT,” aforementioned Soong, an alumnus of S&P global Market Intelligence and Deloitte, whose hiring Ledger declared recently. “Since each of these countries have capital controls, in terms of your ability to maneuver currency out of the country.”
According to Soong – who is launching the Paris-based Ledger’s primarily Asia office in Hong Kong – Chinese and South Korean investors are typically more well-off with fiat-pegged currencies or assets that mirror ancient capital markets.
Even once it bust the buck in the past, demand for USDT continues to dominate trading pairs on Asian exchanges like Huobi Exchange, where CoinMarketCap shows the trading volume is nearly up by 26% in a very single 24-hour-period last week.
Adding further Soong aformentioned:
“Tether [USDT] is a vehicle that’s quite distinctive within the market out here, that I’ve seen until so far.”
Even beyond Tether [USDT], Ledger (which conjointly supports MakerDAO’s dollar-linked dai token) will also add alternative stablecoins as it pursues a significant growth of its custody business, with the goal of supporting over a hundred totally different tokens by the tip of next year.
Explaining further Ledger President Pascal Gauthier said:
“We have an enormous road of integrating several things without delay, along with stablecoins.”
As a capital markets veteran who speaks Mandarin, Cantonese, and Japanese, Soong was the perfect candidate to make out a 12-person team in Hong Kong and appraise the potential of satellite offices in places like Japan and Singapore, Gauthier aforementioned:
“You ought to hire native talent, individuals that perceive the native culture.”
Roughly 30% of Ledger’s hardware sales already come back from Asian markets, despite a previous lack of presence on the bottom.
“This is asset class category where the retail has actually led the way, following by the institutional players coming back in.” However, Soong added:
“We’re undoubtedly seeing tons of traditional asset managers and banks begin to explore how they’re about to enter and support this asset category moving forward.”
Yet when it involves Bitcoin [BTC], Soong aforementioned traditional asset managers across APAC still like better to move their funds into crypto when custody solutions offers identical security and trust level as banks. Hence, Ledger has an institutional custody partnership production with the Japanese bank Nomura.
“They [wealth managers] would ultimately like better to work with traditional financial establishments, that is why partnering with Nomura makes tons of sense,” Soong aforementioned.
Corporations, currency exchanges, and banks in Hong Kong have already started reaching out to inquire concerning crypto custody solutions, Soong said. “Hedge fund managers, individuals that were in investment banking, are all getting into this area to assist build up the infrastructure for this new quality category,” he said.