Catenaa, Tuesday, April 01, 2025-IDA Finance, a Hong Kong-based digital asset firm, has partnered with Japan’s Progmat and other key blockchain companies to develop a stablecoin remittance service aimed at facilitating faster, more efficient cross-border payments between the two regions.
The partnership also includes Datachain, a Japan-based blockchain firm, and TOKI FZCO, a cross-chain infrastructure provider. Together, they will create a proof of concept (PoC) for the stablecoin-powered remittance service, focusing on transactions between Hong Kong and Japan. This service will use Japanese Yen and Hong Kong Dollar-denominated stablecoins to assess the potential benefits of stablecoin transactions over traditional trade financing methods.
The PoC will initially test the system’s ability to process cross-border payments and ensure compliance with regional financial regulations. The companies will collaborate on verifying the receipt of stablecoins and fiat funds through local off-ramp partners, aiming to guarantee the efficiency and reliability of the new remittance system.
Stablecoins, known for their speed and near-instant payment confirmations, are gaining recognition as an alternative to traditional cross-border payment methods. IDA’s Sean Lee emphasized the potential for stablecoin-powered services to grow in the context of increasing regulatory support in both Hong Kong and Japan.
Both regions have been making strides to establish themselves as global leaders in blockchain and cryptocurrency innovation. Hong Kong’s blockchain sector has seen significant growth, and Japan has recently approved reforms to make its crypto regulations more accessible, spurring greater interest from international businesses and investors.
