ZA Bank, a virtual bank in Hong Kong, will offer cash custody accounts for institutions that want to issue stablecoins. The organization is in talks with several parties seeking to issue their stablecoins, and this service would be available for them after receiving a license from the Hong Kong Monetary Authority (HKMA).
Hong Kong's ZA Bank to Offer Custody Accounts for Stablecoin Issuers
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ZA Bank to Offer Stablecoin Support Infrastructure
ZA Bank, a Hong Kong-based virtual banking organization, is preparing to support the upcoming stablecoin boom. The bank announced it is ready to offer special accounts that will serve institutions issuing stablecoins in the region to custody the resources backing these tokens.
ZA Bank’s service would be available for institutions after receiving a special license from the Hong Kong Monetary Authority (HKMA). The authority launched a sandbox structure for stablecoin issuers in March, allowing it to receive feedback from market participants on how these should be regulated.
ZA Bank Alternate Chief Executive Devon Sin stated that the bank had been contacted by up to eight potential customers about this new service offering.
Sin referred to stablecoins as tools that can be useful in many use cases, ranging from retail use to tokenization and even remittance settlements. He explained:
We are keen to explore how to put them into real-world use with the potential issuers.
Sin stressed that this contribution from ZA Bank would help solve some common problems faced by stablecoin issuers, addressing specific pain points and supporting the growth of the Web3 economy. In addition, he said that ZA Bank might offer custody services for digital tokens in the future, exploring the infrastructure needed for this task.
However, cryptocurrency and Web3 are not new areas for ZA Bank. The bank facilitated transactions of $1 billion for Web3 companies in 2023, serving over 100 customers in this field. According to its reports, 80% of the local virtual asset service providers (VASPs) are ZA Bank’s customers.
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