Hong Kong’s ZA Bank starts offering services to stablecoin issuers

Hong Kong-based digital bank ZA Bank is launching reserve banking services for participants of the stablecoin sandbox.

Hong Kong‘s digital bank, ZA Bank, is now offering reserve banking services to stablecoin issuers, as the Hong Kong Monetary Authority (HKMA) reveals the list of participants approved for its stablecoin sandbox initiative.

In a press release on July 18, ZA Bank announced its partnership with RD InnoTech, one of the first companies listed by the HKMA for sandbox trials. ZA Bank is also in the process of onboarding nearly ten additional stablecoin clients, although specific details were not provided.

This initiative follows the HKMA’s announcement of the initial group of companies permitted to test stablecoins backed by fiat currencies. These companies are set to explore e-commerce, trade settlement, and tokenized assets, though the timeframe of their experiments remains unknown.

Alongside RD InnoTech, the first batch includes JD.com’s subsidiary JINGDONG Coinlink Technology Hong Kong and a consortium featuring Standard Chartered Bank (Hong Kong), Animoca Brands, and Hong Kong Telecommunications. As sources familiar with the matter earlier told crypto.news, the consortium intends to utilize crypto custody services of Zodia Custody, which is partly owned by Standard Chartered.

Earlier, the HKMA reported receiving over 100 submissions advocating for a stablecoin licensing regime. According to a public consultation, a “vast majority” of the 108 respondents supported regulatory oversight to ensure the sustainable growth of the virtual assets sector. HKMA Chief Executive Eddie Yue emphasized the importance of a well-regulated environment to foster responsible and sustainable growth within Hong Kong’s stablecoin ecosystem.