HKMA Reveals Stablecoin Sandbox Participants Including Big Names

Hong Kong’s Financial Regulator Announces Stablecoin Issuer Sandbox Participants

The Hong Kong Monetary Authority (HKMA) has revealed the participants of its stablecoin sandbox, allowing these entities to begin experimenting with issuing digital currencies backed by fiat currencies. The list includes notable names such as Standard Chartered and Animoca Brands.

In its recent announcement, HKMA identified JD.com’s subsidiary JINGDONG Coinlink Technology Hong Kong, RD InnoTech, and a collaboration involving Standard Chartered Bank (Hong Kong), Animoca Brands, and Hong Kong Telecommunications as the sandbox participants.

According to a source familiar with the matter, the coalition plans to utilize the institutional digital asset custody capabilities of Zodia Custody, which is partially owned by Standard Chartered.

Key Points from HKMA’s Announcement

“The companies have shown genuine interest in developing a stablecoin issuance business in Hong Kong with a reasonable business plan,” stated HKMA.

The regulator emphasized that these sandbox pilots would operate within a limited scope and be managed in a risk-controllable manner. During the initial stage, members will not handle the general public’s funds, solicit funding from the public, or offer any products associated with the sandbox.

This announcement follows Hong Kong’s earlier disclosure of receiving over 100 submissions from market participants supporting the establishment of a stablecoin licensing regime. A vast majority of the 108 respondents to a public consultation agreed on the need for regulatory oversight as virtual assets continue to evolve.

HKMA Chief Executive Eddie Yue highlighted the potential for a well-regulated environment to foster the sustainable and responsible growth of the stablecoin ecosystem in Hong Kong.

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