Hong Kong’s OneDegree sees significant stablecoin development interest

OneDegree, a Hong Kong-based virtual insurance company, reported interest from over 100 project teams for stablecoin development. 

The enthusiasm spans a variety of applications, including payments, international trade finance, the equity and debt capital markets, and emerging sectors like defi and gamefi.

This uptick in interest coincides with the release of a public consultation paper by Hong Kong’s Financial Services, the Treasury Bureau, and the Hong Kong Monetary Authority focusing on stablecoins. According to a local media publication, Mr. Kwok Yan-lun, co-founder of OneDegree, highlighted the significant attention the company has garnered in the context of stablecoin development. Notably, several of these projects are exploring stablecoin applications and considering applying for a Virtual Asset Service Provider (VASP) license in Hong Kong.

Mr. Guo Yanlin, representing OneDegree, emphasized the pivotal role of stablecoins in the evolution of web3. He elaborated on the expanding scope of stablecoin use cases and their growing acceptance in regulated markets. Yanlin also predicted that this trend will likely lead to increased trading volumes and capital flows for virtual asset exchanges, custodians, and asset managers. 

In light of these developments, OneDegree is advocating for an increase in the upper limit of investor protection for both warm and hot wallets, anticipating a more robust and secure future for digital asset transactions.