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Hong Kong: Jingdong Coinlink Technology Hong Kong Limited, a subsidiary of JD Technology Group, has unveiled plans to issue a stablecoin pegged 1:1 to the Hong Kong dollar (HKD).
According to an announcement on their official website, the Hong Kong Monetary Authority (HKMA) lists Jingdong Coinlink as one of its Sandbox Participants. However, a disclaimer clarifies that this status does not equate to an endorsement or a license to issue stablecoins.
The HKD Stablecoin
Jingdong Coinlink plans to launch the stablecoin on the blockchain, aiming to provide businesses with efficient, cost-effective, and secure payment solutions. The stablecoin will be redeemable on a 1:1 basis, with reserves consisting of highly liquid, trusted assets stored in licensed financial institutions. The company also emphasizes its commitment to collaborating with global regulatory authorities and adhering to both current and future legal and regulatory requirements.
Hong Kong’s Expansion into Crypto
This move by Jingdong Coinlink aligns with Hong Kong’s growing pro-crypto stance. On July 23, CSOP Asset Management, one of China’s largest asset managers, launched Asia’s first Bitcoin futures inverse product in Hong Kong. The CSOP Bitcoin Future Daily (-1x) Inverse Product (7376.HK) follows the successful launch of their Bitcoin Futures ETF (3066.HK) in December 2022.
Exchanges Leaving the Hong Kong Market
Despite these advancements, some cryptocurrency exchanges are exiting the Hong Kong market. On July 18, the cryptocurrency exchange HKX announced the withdrawal of its license application to the Hong Kong Securities and Futures Commission, advising existing users to withdraw their assets. By July 22, a total of 12 crypto exchanges or trading platforms had withdrawn their license applications, with a 13th application being returned for undisclosed reasons.
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