In a significant development, HashKey Group, the operator of one of the two licensed cryptocurrency exchanges in Hong Kong, has announced a collaboration with The Open Network (TON), the blockchain operator created by Telegram Messenger.
According to a South China Morning Post report, the partnership aims to allow users in the Asia-Pacific region to exchange their Toncoin for cash, creating an on-ramp and off-ramp for the cryptocurrency.
The agreement also encompasses the joint exploration of new ecosystem projects, mentorship opportunities, networking, and other incubation activities, as the Open Network Foundation announced.
TON Foundation Prioritizes Compliance
The Foundation was established following Telegram’s decision to abandon its TON blockchain due to a settlement with the US Securities and Exchange Commission (SEC) in 2020.
Despite this setback, the foundation has continued to develop the blockchain and integrated it into Telegram through a mini app and business arrangements.
Although the Foundation aims to maintain a separate identity from Telegram, its blockchain’s primary utility remains closely linked to the popular messaging app, which boasts over 900 million global users.
The collaboration with HashKey is viewed as a significant opportunity by the TON Foundation. HashKey’s regulatory compliance measures, particularly in adhering to know-your-customer (KYC) rules, are expected to facilitate the integration of Toncoin into the Telegram ecosystem.
The Open Network Foundation President Steve Yun emphasized the importance of compliance and expressed confidence in “strategically” following the requirements to ensure regulatory adherence.
The Foundation views Telegram’s “mini app ecosystem” as a crucial driver for adopting its blockchain. Moreover, the blockchain has secured premium real estate within the Telegram app, making its blockchain the default wallet option in the sidebar.
However, the network faces regulatory challenges, restricting the use of the cryptocurrency function within Telegram for individuals in certain jurisdictions, including the US, China, and Hong Kong.
Asia’s ‘Super App’ Market For Toncoin Adoption
According to the report, TON recognizes Asia as a natural fit for its expansion due to the region’s familiarity with the concept of “super apps.” The partnership with HashKey aims to leverage the existing “super app” culture prevalent in Asia-Pacific, with renowned platforms such as Line, Kakao, and WeChat.
HashKey recently launched a global crypto exchange and received an upgraded license from Hong Kong’s Securities and Futures Commission, enabling it to sell crypto-related investment products to retail investors.
Notably, HashKey aims to surpass Coinbase’s trading volume by 2030, positioning itself as a formidable competitor in the crypto exchange landscape.
Ultimately, the partnership between HashKey Group and the Open Network Foundation opens new avenues for Toncoin adoption and cash conversion in the Asia-Pacific region.
By integrating Toncoin into the Telegram ecosystem, both organizations aim to cater to millions of potential Asian users who are already familiar with the “super app” concept.
Currently, the native token of the blockchain, TON, is trading at $7.14, reflecting a slight decline of nearly 3% within the last 24 hours. However, an analysis of the 1-day TON/USD chart reveals a noteworthy upward trend spanning the past 30 days. The token has exhibited substantial gains during this period, amounting to 63%.
Featured image from Shutterstock, chart from TradingView.com