Stablecoin pegged to Hong Kong dollar unveiled

Jingdong Coinlink Technology Hong Kong Limited, a subsidiary of JD Technology Group, has announced that it plans to issue a 1:1 stablecoin linked to the Hong Kong dollar (HKD).

According to an announcement on the official website, the Hong Kong Monetary Authority (HKMA) currently lists the firm as one of The Sandbox Participants.

Although the company is included as a Sandbox Participant by the HKMA, a disclaimer states that it cannot be considered as being “endorsed or granted or deemed to be licensed to issue stablecoin.”

Related: Animoca, Standard Chartered team up in HKMA stablecoin sandbox

The HKD stablecoin

Jingdong Coinlink plans to issue the stablecoin on the blockchain with a peg to the HKD, aiming to provide businesses with “efficient, cost-effective, and secure payment solutions.”

According to the website, the stablecoin will be redeemable on a 1:1 basis, and its reserves will consist of “highly liquid, highly trusted assets” stored in licensed financial institutions.

The website also states that the stablecoin will “actively” collaborate with “global regulatory authorities” while adhering to existing and future legal and regulatory requirements.

Related: Hong Kong to launch Asia’s first inverse Bitcoin ETF

HK expansion into crypto

The planned HKD stablecoin intended by Jingdong Coinlink follows a pattern of developments in Hong Kong that suggest an emboldening pro-crypto financial approach.

On July 23, CSOP Asset Management, one of the largest asset managers in China, launched Asia’s first Bitcoin ( BTC ) futures inverse product in HK.

The CSOP Bitcoin Future Daily (-1x) Inverse Product (7376.HK) followed the launch of the asset management firm’s successful Bitcoin Futures ETF (3066.HK) in December 2022.

Related: HKX joins list of crypto exchanges to quit Hong Kong market

Exchanges leave the HK market

In a growing list of exchanges, the cryptocurrency exchange HKX withdrew its license application to the HK Securities and Futures Commission (SFC).

Announcing its decision on July 18, the exchange advised existing users to withdraw their crypto assets after initially applying for the HK license in February.

On July 22, it was noted that 12 crypto exchanges or trading platforms had withdrawn their license applications in HK, while a 13th had its application returned for undisclosed reasons.

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