Hong Kong's ZA Bank to Offer Stablecoin Issuers Banking Solutions

IconCryptoNewsTerminal Staff19 Jul, 2024

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Hong Kong's ZA Bank to Offer Stablecoin Issuers Banking Solutions

Hong Kong's largest virtual bank, ZA Bank, has announced plans to provide reserve banking services to issuers of stablecoins, a type of cryptocurrency pegged to the value of a fiat currency like the U.S. dollar. The move is seen as a major step forward for the adoption of stablecoins in the financial industry. According to a statement from ZA Bank, the bank is currently in discussions with approximately 10 stablecoin companies and has already signed RD InnoTech Limited as its first client. RD InnoTech Limited is a financial technology company that issues the Renminbi-backed stablecoin, RNB. The provision of reserve banking services by ZA Bank will allow stablecoin issuers to hold their fiat currency reserves with a regulated financial institution. This will provide greater security and transparency for stablecoin users and will help to boost confidence in the use of stablecoins as a means of payment and investment. The move by ZA Bank is a significant development in the stablecoin market and is likely to be followed by other banks and financial institutions. As the use of stablecoins continues to grow, the need for regulated banking services to support the industry will become increasingly important.

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