Amaka Nwaokocha57 minutes agoHK bank supports nation"s regulatory goals with reserve servicesThis development aligns with the city’s regulatory goals and represents a forward-thinking approach to integrating traditional banking with cutting-edge financial technologies.277 Total views1 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksHong Kong’s largest virtual bank, ZA Bank, has announced an initiative to provide exclusive reserve bank services for stablecoin issuers. This move aligns with the territory"s new stablecoin licensing regime.
This recent regulatory framework mandates cryptocurrency stablecoin issuers deposit reserve assets in local banks, a significant step toward ensuring greater stability and security within the digital asset market.
According to local media, in a statement released today, ZA Bank confirmed its role as the first digital bank in Hong Kong to provide such services, marking a crucial development in the intersection of traditional banking and financial technology innovation.Reserve bank services
As stablecoins become increasingly integral to the global financial system, providing robust reserve bank services by established financial institutions like ZA Bank is crucial for ensuring their stability and reliability.
According to the latest sandbox participant list unveiled by the Hong Kong Monetary Authority (HKMA), Yuancoin, in collaboration with ZA Bank, is among the first members to participate.
Yuancoin has become ZA Bank’s inaugural stablecoin issuer to utilize these reserve bank services, highlighting a significant partnership to promote innovation and enhance digital asset stability.
Related:Animoca, Standard Chartered team up in HKMA stablecoin sandbox
ZA Bank CEO Yao Wensong highlighted the significance of providing banking services to stablecoin issuers, stating that it merges traditional banking with fintech innovation. He also mentioned that their partnership with Yuancoin demonstrates a shared commitment to promoting innovation and enhancing the stability of digital assets.Alignment with HKMA policies
The bank is in talks with around 10 other stablecoin companies, indicating potential future projects and partnerships. The bank has expressed support for the HKMA’s policies and is positive about the developments entering the sandbox stage.
ZA Bank has been making strides to tap into Hong Kong’s thriving Web3 market, facilitating over $1 billion in transactions for Web3 clients in 2023 alone.
In May 2023, it revealed plans to launch retail virtual asset trading services in the region, just one day after the Hong Kong Securities and Futures Commission (SFC) announced it would start accepting license applications for retail virtual asset trading platforms (VATPs)
Following its entry into the retail virtual asset trading market, the bank has captured over 80% of the client banking market share for VATPs in Hong Kong.
The Hong Kong Securities and Futures Commission added seven unlicensed cryptocurrency trading platforms to its alert list on July 15, citing concerns about investors" safety and the unauthorized operation of these platforms.
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