Hong Kong, which wants to be the center of the cryptocurrency sector, has signed another innovation! Here are the details

Hong Kong, Standard Chartered Bank ve Animoca Brands announced the first group of participants of its stablecoin sandbox initiative, which includes leading organizations such as

Hong Kong to Trial Stablecoin with Standard Chartered Bank and Animoca Brands Among First Participants

However, authorities stipulated that these participants would not be allowed to solicit public funds during the trial phase. The move is part of Hong Kong’s broader aim to establish itself as a leading cryptocurrency hub.

In a statement, the Hong Kong Monetary Authority (HKMA), the territory’s de facto central bank, detailed the trial’s aim to allow institutions to test operational plans for stablecoin issuance. The aim was to develop a regulatory framework that was both appropriate and risk-based.

First announced in March, the sandbox will include Jindong Coinlink Technology, RD InnoTech, Standard Chartered Bank, Animoca Brands, and Hong Kong Telecommunications in its first phase.

In a separate statement, Darryl Chan, deputy director general of the HKMA, stressed that sandbox participants should not solicit funds from the public or offer investment products under the name of the sandbox. “They cannot use funds from the general public in the initial phase of their testing,” Chan said.

The first group of participants suggested use cases include applications in payments, supply chain management, and capital markets.

Chan highlighted the potential benefits of stablecoins, noting their ability to lower costs, reduce transaction times and offer innovative solutions thanks to their programmability.

“They will create more automated and ‘smarter’ financial services, thereby facilitating fund flows and enabling better management of risks associated with transactions,” he added.

*This is not investment advice.