As cryptocurrencies gradually enter traditional finance, stablecoin issuer Circle and Bitcoin reserve strategy pioneer Micro Strategy have become familiar stock names to investors, and more Bitcoin reserve strategy companies, SOL reserve strategy companies, and even companies with ETH and TRX as reserves have sprung up like mushrooms after rain, and most of them have increased several times in the early stage, which is more amazing than the cryptocurrency itself! This article will introduce how to join this new blue ocean market by opening an overseas securities account or a multiple-trust account.
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ToggleWhat are the advantages and disadvantages of opening an overseas securities account?
There are two ways to invest in overseas listed companies. The most direct way is to open an overseas securities account. Investors who need regular transactions are advised to open an overseas account directly, because most brokerage firms claim that they do not charge transaction fees. Investors who are accustomed to frequent transactions to earn price differences can save a lot of transaction costs.
Currently, many overseas brokerage firms provide online account opening procedures. American brokerage firms such as Firstrade, Charles Schwab, and Interactive Brokers IB are popular options commonly used by Taiwanese people. As long as you fill in the information online and upload your ID, you can quickly open an overseas securities account.
The disadvantage of opening an overseas securities account is that the funds have to be remitted overseas, and the remittance fee is usually about NT$1,000 each time, depending on the handling fees of each bank. The brokerage firm will also charge an additional handling fee when the funds are remitted back. It is not suitable for frequent deposits and withdrawals. This method is suitable for investors who want to diversify some of their assets overseas.
For complete instructions on opening a U.S. stock account, the author recommends Mr. Market ’s article. Interested readers are welcome to refer to it. ABMedia does not charge any commission and is not responsible for any recommendation .
How to open a consignment account? Is it better to settle in Taiwan dollars or foreign currencies?
A more convenient way is to place an order directly through a Taiwanese brokerage firm through a multiple-entrustment transaction, and keep the funds in a Taiwanese bank. In case of an accident, there are Taiwanese businesses to help communicate.
What is a re-order transaction?
Sub-brokerage is formally known as "foreign securities trading business under entrustment". It allows investors to open a "sub-brokerage account" with a domestic brokerage firm that is qualified to sub-broker foreign securities without having to fly overseas to open a securities account. The domestic brokerage firm will then place an order with a foreign brokerage firm after receiving the order. Because the order is processed twice by the domestic and foreign brokerage firms, it is called "sub-brokerage".
How to open a multiple-mandate account? What kind of investors is it suitable for?
Taiwanese investors can open a multiple-mandate account directly through a brokerage firm. If an investor already has a Taiwan stock securities account, most of them can directly open a multiple-mandate account on the brokerage platform. Multiple-mandate accounts of Taiwanese brokerage firms generally support the United States, Japan, Hong Kong, Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. Investors do not need to open accounts one by one and can invest in multiple overseas markets.
However, repeated entrustment will incur two levels of fees, including handling fees from Taiwan brokerage firms and overseas exchanges, and most brokerage firms have a "minimum handling fee", so frequent small transactions are not recommended.
Another difference from the Taiwan stock market is that the re-entrustment transaction adopts a circle deposit system. Investors must ensure that there is sufficient settlement funds (transaction price plus handling fees and various miscellaneous fees) in the agreed settlement account before they can place an order.
Should I choose Taiwan dollar settlement or foreign currency settlement?
The re-entrusted delivery account can be a foreign currency account or a New Taiwan dollar account. If you are an investor who does not trade frequently, I suggest you use a New Taiwan dollar account to trade first, which can save you the trouble of exchanging currency by yourself and calculating the handling fee first. However, if you are an investor who regularly trades US stocks or other countries' stock markets, you can exchange currency and store it in a foreign currency account when the exchange rate is lower, which may save you some fees on the exchange rate difference.
Should I choose an overseas broker or a duplicate entrusted account?
The author has compiled a comparison table of overseas brokerages and multiple commissions in the United States. For the Cathay United Bank multiple commission account that the author often uses, placing orders through its securities app only charges a transaction fee of 0.1% for US stocks, and there is no minimum threshold limit. In addition, many types of stocks are supported, and all stocks with codes displayed in the system can be traded. On the contrary, the US stock broker Firstrade has restrictions on penny stocks with poor liquidity and stock prices less than $5, like many crypto stocks that can be seen but not eaten.
However, re-mandates usually do not support long-term orders (such as Firstrade's GTC orders, which can be valid for up to 90 days). Investors need to re-place orders every day, and re-mandates do not support pre-market and after-market trading.
Practical teaching of account opening process, taking Cathay United Bank's multiple-trust account as an example
If investors already have a Taiwan stock securities account, they can directly click on the order app to open an online re-entrustment account. If not, they can open a securities account online at the bank they often use. Here we take Cathay United Bank as an example. As long as the following conditions are met, you can apply online. According to the author's actual test, all processes can be completed on the same day.
- A natural person who is 18 years of age or older and does not have a "U.S. taxpayer", multiple citizenship, or "guardianship or support declaration" status
- Hold a foreign currency current account at Cathay United Bank and have a valid mobile phone number on file with the bank
After entering the Cathay United Bank CUBE App, click "Investment", "Start to Experience Securities Services", and prepare your ID card and second ID (Health Insurance Card, Driver's License, Passport) and follow the steps to complete the online account opening. Then deposit funds and you can trade stocks in multiple markets such as the United States, Japan, Hong Kong and Mainland China!
Risk Warning
Cryptocurrency investment carries a high degree of risk. Its price may fluctuate drastically and you may lose all your capital. Please assess the risk carefully.
Naveen Mallela, co-director of JP Morgan's blockchain platform Kinexys, announced in an interview this morning (June 18) that he will work with the well-known exchange Coinbase to launch a pilot program for the deposit token JPMD and deploy it on the Base chain for testing. He emphasized: "This is the first time in history that a commercial bank has put a deposit token on a public chain."
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ToggleUsers can receive interest by holding deposit tokens JPMD
Deposit Token is a transferable digital currency, which means that the user's deposit in the bank is "tokenized" and can achieve instant settlement on the chain.
Mallela said that JPMD represents the user's right to claim physical deposits from JPMorgan Chase, similar to demand deposits, and can receive interest in the future. He also pointed out that deposit tokens are "better" than stablecoins because they are based on the fractional reserve system of traditional banks and enjoy deposit insurance protection, which are currently unavailable to mainstream stablecoins.
JPMD will be tested on Base, with institutional users from both parties as the main audience
JPMorgan Chase, which just submitted the "JPMD" trademark application, is planning to launch its own deposit token JPMD pilot program. Mallela said that in a few days, a fixed amount of JPMD will be transferred from its own wallet to the blockchain Base of the well-known exchange Coinbase for testing, mainly for its own institutional users. Coinbase's institutional customers will also have the opportunity to use JPMD transactions in the future.
He added that JPMD will be denominated in US dollars. This is the first time that JPMorgan Chase has transferred its deposit token products to L2 for testing. The entire pilot program will last for several months. If approved by regulators in the future, it will be expanded to more currencies and support more users.
Currently, Base is one of the most popular Ethereum L2s, with a total locked-in volume of approximately US$3.8 billion, mainly attracting Memecoin and various DeFi projects.
Kinexys Payment Platform Continues to Expand
JPMorgan Chase has previously launched a blockchain payment platform called Kinexy and issued its own stablecoin JPM Coin to settle its own banking transactions. To date, it has processed transactions totaling more than US$1.5 trillion.
JPM Coin is designed to be 1:1 anchored to fiat currency, and currently corresponds to the US dollar, British pound and euro. It is mainly used for transactions and clearing services between large institutions.
Mallela said that Kinexys will continue to expand in the future, and the JPMD deposit token launched this time is targeted at institutional users who want to use products that are "bank-backed" and serve as "stablecoin alternatives."
JPMorgan Chase is already seeing deposit tokens going mainstream
A few years ago, JPMorgan Chase predicted in a white paper :
“Deposit tokens will become a widely used form of currency in the digital asset ecosystem, just like more than 90% of the currency currently in circulation is in the form of bank deposits.”
Risk Warning
Cryptocurrency investment carries a high degree of risk. Its price may fluctuate drastically and you may lose all your capital. Please assess the risk carefully.
Eyenovia, a US-listed eye medicine technology company, announced yesterday that it would raise $50 million in private placement funds to purchase Hyperliquid's native token HYPE, becoming the first international company to include HYPE in its financial reserves. At the same time, the company will change its name to Hyperion DeFi, appoint a new chief investment officer, and participate in the staking node verification program. As soon as the news came out, EYEN's stock price rose 134% in a single day.
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ToggleEyenovia embraces Hyperliquiquid, is it recognition or hype?
Eyedrops digital technology company Eyenovia (ticker: EYEN) announced yesterday that it has completed a $50 million private placement (PIPE), which will be used to establish its first cryptocurrency reserve, locking in the high-growth potential Hyperliquid native token HYPE, even far exceeding the company's market value of $20 million.
The transaction is limited to institutional investors. The company will issue 15.4 million convertible preferred shares and 30.8 million common stock warrants, both with a conversion price and exercise price of $3.25 per share. If all warrants are subscribed, it can further attract up to $150 million in funds.
Apparently in order to implement this transformation strategy, the company appointed Hyunsu Jung as the new chief investment officer and member of the board of directors, and simultaneously announced that the company name and stock code will be changed to "Hyperion DeFi" and "HYPD".
CEO is optimistic about Hyperliquid: Staking HYPE to earn income stream
Eyenovia said it will use the funds to purchase more than 1 million HYPEs, becoming one of the world's largest holders, and plans to participate in the staking verification on Hyperliquid, which will be managed by Anchorage Digital. The company's CEO Michael Rowe said:
This is not just an investment decision, but a big step for us to seek diversified returns for shareholders and embrace the blockchain revolution.
New Chief Investment Officer Jung also added: "We believe HYPE is one of the strongest digital assets with the greatest growth potential."
On the other hand, HYPE coin price soared: Eyenovia stock price fell 86% in one year
As Hyperliquid has recently jumped to become the 8th largest L1 in the world in terms of TVL, and HYPE has reached the 13th largest cryptocurrency in terms of market value, the trading volume and active users of its main on-chain order book DEX continue to rise rapidly. However, on the other hand, EYEN's stock price does not seem to be so good.
Even though the HYPE reserve caused EYEN's stock price to soar 134% in a single day, the company has fallen 40.3% so far this year and 86.2% in a year, and has lost 99% of its value since its listing in 2018. Even if it turns to follow the trend of hyping crypto reserves, if its own business continues to lose money, it may be unable to turn the tide.
Eyenovia continues to develop its dual-engine growth model
Eyenovia emphasized that even though it has invested heavily in the crypto field, it has not deviated from its core medical business, including the development of a new generation of innovative treatment devices designed specifically for dry eye patients, such as UFD. The CEO said that it will steadily advance the "dual engine" operating model of combining medical technology with crypto investment as part of its Web3 transformation strategy to provide shareholders with a richer source of value.
Risk Warning
Cryptocurrency investment carries a high degree of risk. Its price may fluctuate drastically and you may lose all your capital. Please assess the risk carefully.
