HashKey Group has unveiled its strategic alliance with Yuanbi Technology and Zhongan Bank to launch a Hong Kong dollar-backed stablecoin. This announcement was made at a recent strategic cooperation signing ceremony with KUN & Hashkey Exchange. Dr. Xiao Feng, the founder of Hashkey Group, unveiled plans to launch the stablecoin pegged to the Hong Kong dollar.
Yuanbi Technology, now under the leadership of Chen Delin, a former president of the Hong Kong Monetary Authority, has secured a stored value facility (SVF) license. The license is a crucial milestone, enabling the company to operate within the regulatory framework of Hong Kong’s monetary system. Hashkey Group’s alliance with such a strategically placed entity underscores its commitment to regulatory compliance and financial stability.
Extending reach to retail investors
Moreover, Hashkey Group has broadened its horizon, extending its services to retail investors. The HashKey Exchange, now one of the two virtual asset exchanges in Hong Kong approved for retail investors, represents a significant step in the group’s consumer engagement strategy. Additionally, the HashKey Exchange app is another leap forward. Recently greenlighted by the Securities and Futures Commission (SFC), this app promises to enhance the trading experience for users in Hong Kong.
Hong Kong residents now have the unprecedented capability to trade bitcoin and ether directly with their local currency or US dollars. Such transactions can occur seamlessly, with funds transferred from local bank accounts. Hence, the HashKey Exchange app is more than a trading platform; it’s a bridge connecting traditional banking to the evolving world of cryptocurrencies.
This initiative is in tandem with the Hong Kong government’s broader goals to stimulate the virtual asset sector. Despite setbacks like the JPEX scandal, the city’s treasury secretary reaffirmed during fintech week that Hong Kong will persist in nurturing the web3 market. Consequently, a new mandatory licensing scheme for cryptocurrency platforms is on the horizon. This scheme will enable such platforms to offer tokens with significant market capitalization to retail traders, fostering a more inclusive financial landscape.
Hashkey Group’s strategy reflects a deep understanding of the market’s needs. By focusing on the B2B market, Hashkey aims to resolve prevalent issues faced by trading companies, such as cross-border payment obstacles and foreign exchange risk management.