Hong Kong's financial industry may study launching stablecoin trading desks and institutional custody services

Hong Kong Monetary Authority recently announced the list of participants in the stablecoin issuer sandbox, including JD Coin Chain, Circle Coin Innovation, Standard Chartered Bank, Anni Group, Hong Kong Telecom and other institutions. Research reports released by Zeng Shengjun, a researcher at the Greater Bay Area Financial Research Institute of the Shenzhen Branch of Bank of China, and Guan Zhenqiu, a researcher at the Hong Kong Financial Research Institute of Bank of China, analyzed that the Hong Kong dollar stablecoin can improve the efficiency and inclusiveness of the Hong Kong financial system. Its stability, free convertibility, high security, high open source and cross-border mobility can provide support for a wider range of financial innovations.

For example, financial institutions that have obtained the qualification of stablecoin issuers in the sandbox can use the opportunity to issue stablecoins to strengthen the research and development of new products such as blockchain, and further enhance their financial technology strength around the goal of improving transaction efficiency, reducing transaction costs and improving the existing payment system. Financial institutions can closely follow the progress of Hong Kong's stablecoin pilot policy, gradually expand their service scope, such as researching and launching stablecoin trading counter services, launching stablecoin custody services for institutional investors, and launching digital asset consulting services including stablecoin consulting, trading and blockchain node operation.