ZA Bank, a virtual bank based in Hong Kong, is getting ready to support the upcoming rise of stablecoins. They've announced plans to offer special accounts for institutions that issue stablecoins in the region. These accounts will help these institutions safely hold the assets backing their tokens and make them tokens backed by RWA. The move is very useful for growing legitimacy in the crypto world.
License to offer this type of Account
To offer this service, ZA Bank needs a special license from the Hong Kong Monetary Authority (HKMA). In March, HKMA introduced a sandbox program for stablecoin issuers to gather feedback on how to regulate them effectively.
Devon Sin, ZA Bank's Alternate Chief Executive, mentioned that they've already been in touch with up to eight potential customers interested in this new service. Sin sees stablecoins as versatile tools with various uses, such as in retail, tokenization, and remittance settlements. ZA Bank wants to explore ways to apply them in practical situations with potential issuers.He believes that ZA Bank's involvement will help address common challenges faced by stablecoin issuers and support the growth of the Web3 economy. Additionally, ZA Bank is considering offering custody services for digital tokens in the future, which would require building the necessary infrastructure.
Despite this new focus, ZA Bank isn't new to the world of cryptocurrency and Web3. In 2023, they handled transactions totaling $1 billion for Web3 companies, serving over 100 customers in this sector. They also claim that 80% of the local virtual asset service providers are ZA Bank customers.
This move brings numerous benefits to the crypto world. As it Provides a safe and regulated environment for stablecoin issuers to hold their assets, ZA Bank enhances legitimacy and trust in the Crypto industry. This move not only addresses common challenges faced by stablecoin issuers but also supports the growth of the Web3 economy by facilitating the practical application of stablecoins in various sectors such as retail, tokenization, and remittance settlements.
Hence, it is a revolutionary move in the crypto world that helps the crypto world to interact with Real-world which helps this industry to go for Mass Adoption.
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