ZA Bank in Hong Kong has announced its foray into the blockchain industry by lending its banking services to stablecoin firms, which could be a momentous event for the sector.
In an announcement, ZA Bank, a virtual bank in Hong Kong, claimed it would provide banking services to stablecoin issuers. In an initial move, the bank will open security for fiat reserves. Stablecoin firms could use these reserves to back their assets. Moreover, the stablecoin firms will also get access to traditional banking services. These include payroll management, fund transfers, deposits, and others.
Devon Sin, a senior executive of ZA Bank, said, “With these new services, we’re directly addressing the unique challenges faced by stablecoin issuers, ultimately promoting growth and stability within the Web3 economy.” Thus, with the bank’s services, stablecoin issuers will no longer have issues in managing their assets in fiat currency.
Exactly a year back, ZA Bank introduced a conversion feature for its clients. They could use their ZA Bank accounts to convert crypto to fiat money and vice versa. Moreover, the stable and transparent crypto regulatory environment in Hong Kong benefits the sector. The government of Hong Kong is proactive in these measures. Recently, one of the government regulators announced their wholesale digital currency project as well.
Government officials have also spoken about the benefits of crypto ETFs and are considering their presence in Hong Kong. As a result, the private sector in Hong Kong has taken the lead to lead similar initiatives. Global corporations like Visa and HSBC have led crypto projects in Hong Kong.
Hong Kong has also partnered with other countries and international organizations on central bank digital currencies.
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