Hong Kong, Thursday, July 25, 2024 – ZA Bank, a digital bank, said Wednesday, July 24 that it would provide reserve banking services tailored for stablecoin issuers, a first for Hong Kong.
The move comes as Hong Kong’s monetary authority opens sandboxes for stablecoin issuers, positioning the territory as a hub for digital assets.
ZA Bank has partnered with RD InnoTech, a participant in the authority’s sandbox program, to be the first stablecoin issuer to use its reserve banking services.
The bank said it is in talks with nearly 10 other potential clients.
ZA Bank is a Hong Kong-based licensed bank that became the first digital bank in the region.
Since early March, the arrangement of launching sandboxes for stablecoin issuers by the Hong Kong Monetary Authority (HKMA) has been in the pipeline, and ZA Bank enhanced its features targeting HKMA’s initiative on July 23.
ZA Bank has teamed up with one of the initial participants in HKMA’s sandbox, RD InnoTech Limited.
RD InnoTech would be the first stablecoin issuer, paving the way for ZA Bank to initiate the latest reserve banking services for customers.
The new venture is expected to broaden the Hong Kong customer base towards the adoption of innovative technology in collaboration with fintech, driving it to an esteemed level in the Web3 space.
