Chinese E-commerce Giant JD to Issue First HKD Stablecoin on Public Blockchain
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Coinspeaker Chinese E-commerce Giant JD to Issue First HKD Stablecoin on Public Blockchain JD.com, one of China’s largest e-commerce groups, has announced plans to issue the first-ever stablecoin pegged 1:1 to the Hong Kong Dollar (HKD) on a public blockchain. The stablecoins will be backed by highly liquid and credible reserve assets. The HKD stablecoin will be introduced to the market through the company’s Hong Kong subsidiary, JD Coinlink. The firm was one of the three companies selected by the country’s financial regulator, the Hong Kong Monetary Authority (HKMA), for its stablecoin sandbox program on July 18. Accessibility and Usage of the HKD Stablecoin Once the HKD stablecoin goes live, both institutional and retail traders will be able to access the virtual assets on public blockchains such as Binance Smart Chain (BSC), Ethereum, TRON (TRC20), among others. However, the firm has yet to choose its preferred blockchain for the debut. The company stated that the launch of the HKD stablecoin aims to provide enterprises with “efficient, cost-effective, and secure payment solutions.” Businesses and merchants can use the stablecoin for payments of goods and services. JD Coinlink clarified on its official website that despite issuing the first HKD stablecoins, it is not a licensed stablecoin issuer. Additionally, the firm noted that it does not endorse or support the digital assets, as they could still be affected by market volatility, as history has shown in the case of TerraUST. However, it will ensure that the stablecoins comply with existing regulatory requirements in Hong Kong. The firm plans to work with other regulatory authorities outside the jurisdiction to ensure full compliance with existing or future regulations. Regular Audits JD Coinlink stated that it will not be the primary custodian of the stablecoin. Once the digital assets are launched, the company will store the…
Filed under: News - @ July 24, 2024 9:18 pm