Hong Kongs IDA Finance is collaborating with the Japanese banking titan Progmat, among others, to establish a stablecoin-driven international money transfer service that connects Hong Kong and Japan.
The intention is to furnish merchants with a substitute asset for import-export commerce between the two nations, employing blockchain technology to hasten operations. They will also scrutinize methods to enhance existing trade pathways while adhering to regulations.
IDA and Progmat Inc. are likewise cooperating with the Japanese blockchain enterprise Datachain and cross-chain infrastructure supplier TOKI to construct a proof-of-concept (PoC) for stablecoin dealings between Hong Kong and Japan.
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IDA will oversee the 1:1 reserve backing for the stablecoin, whereas Progmat will dispense the stablecoin and contribute its Progmat Coin platform. Datachain will formulate the technology for international stablecoin exchanges, and TOKI will offer its cross-chain proficiency.
Stablecoins have consistently been regarded as a revolutionary element for international payments, notably in commerce. They are swifter than conventional wire transfers, presenting payment verification in moments.
IDA, Progmat, Datachain, and TOKI intend to utilize stablecoins affixed to the Japanese Yen and Hong Kong Dollar, with domestic collaborators managing the fiat on/off ramps. Users will possess the ability to assess the service by initiating international payment solicitations.
IDA co-founder Sean Lee emphasized that Japan constitutes Hong Kongs fifth-largest trading associate, referencing data from the Hong Kong Trade Development Council.
Li pointed out in his declaration that stablecoins are progressively turning into a practical substitute for conventional transfer methodologies, and with more and more regulatory explicitness in the two locales, the area has huge development prospects.
Hong Kong Monetary Secretary Xu Zhengyu expressed that Hong Kong will zero in on tokenization and stablecoins in a work to change into a digital currency center. Xu Zhengyu likewise presented a bill on stablecoins to the Legislative Gathering in December 2024. As of late, both Hong Kong and Japan have been effectively advancing more stablecoin guidelines with the expectation of expanding reception.
In the interim, Japanese legislators keep on propelling a digital currency change bill that would permit stablecoins to be upheld by transient government securities and time stores, however covered at 50%. Subsequent to being endorsed by the Japanese Bureau, the bill has been submitted to the Japanese Diet for thought.
