HK bank supports nation's regulatory goals with reserve services
Hong 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.
Magazine: Meet the hackers who can help get your crypto life savings back
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
38% Dogecoin Rebound, Cardano Tests AI Limits, But Unstaked’s AI Advantage Steals the Show
Dogecoin (DOGE) jumps 38%, and Cardano (ADA) launches an AI testnet, but Unstaked’s advanced AI agents go beyond marketing, offering real impact and value.Dogecoin (DOGE) Future: Aiming for $3.94 with MomentumCardano (ADA) Blockchain Tests AI ScalabilityUnstaked: AI That Goes Beyond MarketingFinal Take: Real AI Utility vs. Hype

ETH Trades at Historic Lows vs BTC Since 2019
ETH hits lowest value compared to BTC since 2019, raising questions on a potential rebound amid mixed fundamentals.ETH Undervalued Against BTC: A Historical SetupBullish History, Bearish FundamentalsPatience Required for Ethereum Bulls

Popcat Climbs, Dogecoin Stalls, But BTFD Triples Tokens with 200% Bonus—Best Meme Coin Presale to Buy Now Before May 26 DeadlineConclusion: Don’t Mis
BTFD Coin surges in Stage 15 with 90% APY staking and 200% bonus. Best meme coin presale to buy now before it launches on May 27!BTFD Coin (BTFD) – The Bulls Are Charging, Are You In?Dogecoin (DOGE) – The OG Meme King Facing Shaky GroundPopcat (POPCAT) – The Smart Money Magnet of the Moment

SHIBA’s Hype Fades, ADA Devs Work; Meanwhile, Web3 ai Becomes Highest Trending Crypto With $500K Frenzy
Explore Shiba Inu (SHIBA) recovery trends, Cardano (ADA) prediction backed by developer growth, and how Web3 ai’s Portfolio Optimizer replaces guesswork with smart strategy. Learn why Web3 ai is gaining traction among the highest trending crypto tools.Web3 ai’s Portfolio Optimizer Turns Guesswork Into GainsShiba Inu (SHIBA) Recovery Sparks Renewed Interest After Key Price ReboundCardano (ADA) Prediction: Development Surge Fuels Bullish OutlookStrategy Over Speculation

Trending news
MoreCrypto prices
More








