Hong Kong’s ZA Bank starts offering services to stablecoin issuers

by

As a seasoned crypto investor with a strong interest in the latest developments in the digital asset space, I find the recent announcement from Hong Kong-based digital bank ZA Bank particularly intriguing. Having closely followed the regulatory landscape of various jurisdictions, it’s clear that the approach being taken by the Hong Kong Monetary Authority (HKMA) is a step in the right direction.

ZA Bank, a digital bank based in Hong Kong, is introducing reserve banking facilities for members of the city’s stablecoin experimental program.

Hong Kong’s digital bank, ZA Bank, has commenced providing reserve banking services to stablecoin issuers. This announcement follows the Hong Kong Monetary Authority (HKMA) unveiling the names of the approved participants for its stablecoin experimentation program.

On July 18, ZA Bank unveiled its collaboration with RD InnoTech, one of the initial firms approved by the HKMA for sandbox experiments. Meanwhile, ZA Bank is in the midst of bringing on board close to ten more stablecoin clients, without disclosing further information.

The HKMA has revealed the first batch of businesses given permission to trial stablecoins backed by real currencies. These businesses will focus on applications such as e-commerce, trade transactions, and digital asset representation. However, the exact timelines for these trials have yet to be disclosed.

I, as an analyst, would rephrase it as follows: RD InnoTech is joined in the initial group by JINGDONG Coinlink Technology Hong Kong, a subsidiary of JD.com, and a consortium comprising Standard Chartered Bank (Hong Kong), Animoca Brands, and Hong Kong Telecommunications. According to earlier reports from crypto.news, the consortium aims to leverage the cryptocurrency custody services provided by Zodia Custody, in which Standard Chartered holds a stake.

Previously, the Hong Kong Monetary Authority (HKMA) disclosed receiving over 100 proposals advocating for a regulatory framework for stablecoins. A large proportion, specifically 108 out of the total respondents, in a public consultation expressed their backing for regulatory supervision to facilitate the healthy expansion of the virtual asset market. The HKMA’s CEO, Eddie Yue, underscored the significance of an effectively regulated landscape to promote responsible and enduring growth within Hong Kong’s stablecoin sphere.

Read More

2024-07-19 12:26