Group 1 - Marco Digital Technology (01942) announced a conditional agreement to subscribe for 750,000 preferred shares of KUN International Group Limited for a total consideration of $6 million, equivalent to approximately HKD 47.1 million [1] - Following the completion of the transaction, the 750,000 preferred shares will represent about 5.27% of the total issued share capital of KUN International Group [1] - KUN operates a stablecoin-based payment and financial infrastructure platform, providing comprehensive services including payment, asset management, and card issuance for various clients such as B2B cross-border e-commerce and Web3 projects [1] Group 2 - The financing round will be utilized by KUN to enhance research and development in areas such as cross-border transaction security, underlying blockchain infrastructure, and wallet technology [2] - KUN aims to upgrade its AI risk control system and compliance capabilities while collaborating with global ecosystem partners to create a seamless digital payment network between Web2 and Web3 [2] - The collaboration with KUN is viewed as a significant strategic move for the group in the insurtech infrastructure space, focusing on building compliant and efficient stablecoin payment applications and solutions [2]

Investment Rating - The report does not explicitly state an investment rating for Yeahka (9923 HK) Core Insights - Stablecoins are reshaping the global cross-border payment landscape with advantages such as short settlement times, low costs, and resistance to exchange rate fluctuations, making them ideal for various payment scenarios [2][10] - Yeahka has expanded internationally since 2021, obtaining payment licenses in Singapore and the U.S., and launched its cross-border payment brand YeahPay in 2023, achieving an overseas transaction volume of over 1.1 billion RMB in 2024, a nearly 5-fold year-on-year increase [11][12] - The traditional cross-border payment model incurs fees of approximately 3-8% for merchants, while third-party payment platforms like Yeahka generate revenue through diverse models including transaction fees, currency conversion fees, and interest income from deposited funds [12][10] Summary by Sections Section: Stablecoins in Cross-Border Payments - Stablecoins enable peer-to-peer real-time settlement through distributed ledger technology, reducing transaction costs and compressing settlement times to minutes compared to the traditional banking system which relies on the SWIFT network [2][10] Section: Yeahka's Overseas Expansion - Yeahka has successfully launched its cross-border payment brand YeahPay and signed a global strategic cooperation memorandum with Alipay International, marking significant growth in its overseas business [11][12] Section: Existing Payment Industry Model - The revenue model for third-party payment platforms includes transaction fees, currency conversion fees, interest income from overseas payments, and technology output, showcasing a diverse approach to profitability [12][10] Section: Future Business Models for Third-Party Payment Providers - Stablecoins present new business opportunities for acquirers, allowing them to expand into overseas markets and diversify payment scenarios, such as providing one-stop services for merchants [13][14]

Group 1 - The core point of the article is that Uber is currently in the research phase of using stablecoins as a payment tool [1]

Financial Data and Key Metrics Changes - Total transaction volume for Q1 2025 reached $1,060 million, representing a 40% sequential decline and a 23% decrease compared to the broader market [4] - Year-over-year performance showed a 23% increase in transaction volume, indicating resilience despite market volatility [5] - Total revenues net of crypto costs decreased by 25.9% year-over-year to $12.6 million, while total operating expenses decreased by 36.3% to $31.1 million [6] - Net income improved by 176.5% year-over-year to $16.2 million, marking a significant turnaround from a loss [6][35] - Adjusted EBITDA loss improved by 11% year-over-year to $14.5 million [7][37] Business Line Data and Key Metrics Changes - Crypto trading accounted for $1,060 million of total notional volumes, while loyalty redemptions contributed $153 million [30] - Active accounts totaled 777,349, with 399,765 in crypto trading and 377,679 in loyalty redemption, reflecting a sequential decline but relatively flat year-over-year [29] - Gross crypto services revenue was $1,070 million, up 27.7% year-over-year but down 40.3% sequentially [31] Market Data and Key Metrics Changes - Assets under custody totaled $1,873 million, an 18.7% decrease from the previous quarter but a 52.5% increase year-over-year [30] - The loyalty redemption volumes declined both sequentially and year-over-year, indicating challenges in that segment [30] Company Strategy and Development Direction - The company is transforming into a pure play crypto infrastructure company, divesting its custody business to ICE and exploring alternatives for its loyalty business [7][10] - A cooperation agreement with DTR aims to enhance Bakkt's capabilities in stablecoin payments and AI technology [10][12] - The strategic focus includes disciplined expense management and a bottom-up approach to operational efficiency [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential of integrating DTR's technology to redefine digital payments [11][18] - The regulatory environment is seen as favorable, creating opportunities in crypto trading and stablecoin payments [10][21] - The company is suspending quarterly guidance as it finalizes its commercial agreement with DTR [9] Other Important Information - The sale of the custody business is expected to close around May 15, 2025, and is presented as an asset held for sale [36] - Key hires in leadership positions are expected to accelerate the company's strategic transformation [17] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call may have concluded without a Q&A segment or that the details were not included in the transcripts.

Financial Data and Key Metrics Changes - Total transaction volume for Q1 2025 reached $1,060 million, representing a 40% sequential decline and a 23% decrease compared to the broader market [4][5] - Total revenues net of crypto costs decreased by 25.9% year over year to $12.6 million, while total operating expenses decreased by 36.3% year over year to $31.1 million [6] - Net income improved by 176.5% year over year to $16.2 million, marking a significant turnaround from a loss [6][34] - Adjusted EBITDA loss improved by 11% year over year to CHF 14.5 million [6][37] Business Line Data and Key Metrics Changes - Crypto services revenue for Q1 was $3.5 million, reflecting a 5.4% decrease year over year and a 47.8% decrease sequentially [32] - Net royalty revenues were $9.2 million, down 30.3% year over year and 17.1% sequentially [32] - Total notional volumes in Q1 reached $1,210 million, with $1,060 million from crypto trading and $153 million from royalty redemptions [30] Market Data and Key Metrics Changes - The company reported 6.8 million crypto-enabled accounts, with 777,349 active accounts in Q1, showing a sequential decline but relatively flat year over year [29] - Assets under custody totaled $1,873 million, representing an 18.7% decrease from the previous quarter but a 52.5% increase year over year [30] Company Strategy and Development Direction - The company is transforming into a pure play crypto infrastructure company, divesting its custody business to ICE and exploring strategic alternatives for its loyalty business [5][6] - The collaboration with DTR aims to enhance the stablecoin payments ecosystem and improve operational efficiency [7][9] - The company is suspending quarterly guidance as it finalizes the commercial agreement with DTR and optimizes its operations [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the favorable regulatory environment and the potential for significant growth in the stablecoin market [9][20] - The integration of DTR's technology is expected to create a powerful combination that will redefine digital payments globally [18][21] - The company aims to balance speed to market with client experience in its rollout strategy for new products [15][16] Other Important Information - The sale of the custody business is expected to close around May 15, 2025, and is presented as an asset held for sale on the balance sheet [6][36] - Key hires in leadership positions are expected to accelerate the company's strategic transformation [17] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call concluded without a Q&A segment [38]