Hong Kong’s New Stablecoin Pegged to HK Dollar Launched

• Jingdong Coinlink Technology plans to issue a 1:1 stablecoin pegged to the HKD for efficient payments
• The stablecoin will adhere to global regulatory requirements for transparency
• This move is part of Hong Kong’s expanding crypto sector, following significant developments
• Reserves will be held in highly liquid and reliable assets at authorized institutions

Revealing the Hong Kong Dollar-Pegged Stablecoin

Jingdong Coinlink Technology Hong Kong Limited has announced plans to issue a stablecoin pegged to the Hong Kong dollar. The goal is to provide secure and cost-effective payment solutions while meeting regulatory requirements.

According to an announcement on their official website, the Hong Kong Monetary Authority (HKMA) has listed the company as a participant in their Sandbox program.

However, the HKMA wants to make it clear that just because a company is listed as a Sandbox Participant, it doesn’t mean that they’ve been approved, licensed or deemed authorised to issue stablecoins.

HKD Stablecoin Details

Jingdong Coinlink is planning to launch a stablecoin on the blockchain, pegged to the HKD. The goal is to provide businesses with efficient, cost-effective, and secure payment solutions.

You can redeem the stablecoin on a 1:1 basis, and authorized financial institutions will hold its reserves in “highly liquid and reliable assets.”

The company said they’d work closely with global regulatory authorities to make sure they’re up to date with current and future legal and regulatory requirements.

Hong Kong’s Crypto Expansion

The HKD stablecoin project by Jingdong Coinlink follows a series of developments in Hong Kong, showing that the city is becoming more open to crypto.

On July 23, CSOP Asset Management, one of China’s largest asset managers, launched the country’s first inverse Bitcoin futures product.

Exchanges Leaving Hong Kong Market

Meanwhile, HKX has pulled its license application from the SFC in Hong Kong.

The platform made its announcement on July 18, after initially applying for the license in February. It advised existing users to withdraw their crypto assets.

By July 22, reports indicated that 12 crypto exchanges or trading platforms had pulled out of the licensing process in Hong Kong, and a thirteenth faced rejection for undisclosed reasons.