Hong Kong’s ZA Bank to Partner with Stablecoin Issuers

Hong Kong’s virtual bank ZA Bank will provide reserve services for stablecoin issuers. According to its representatives, the bank is in talks with ten companies regarding potential partnerships.

ZA Bank, the largest virtual bank in Hong Kong, announced that it will provide reserve bank services for stablecoin issuers and is currently negotiating cooperation with nearly 10 stablecoin companies. The HK government requires cryptocurrency stablecoin issuers to deposit…

— Wu Blockchain (@WuBlockchain) July 19, 2024

The first partner is the Yuancoin project.

ZA Bank announced plans to serve an additional ten firms with a similar profile in the future, beyond those currently in negotiations.

The authorities of the special administrative region of China require stablecoin issuers to place reserves in local institutions.

The Hong Kong Monetary Authority is expected to introduce mandatory licensing for such organizations. The regulator plans to oversee the management, issuance, and maintenance of token-to-fiat pegs.

Earlier, Circle CEO Jeremy Allaire predicted the strengthening of the special administrative region’s position in the digital assets and stablecoins market.