HKMA unveils latest additions to stablecoin issuer sandbox
The Hong Kong Monetary Authority (HKMA) has revealed the latest additions to its stablecoin issuer sandbox, which has been underway since March.
Three new additions to HKMA’s stablecoin sandbox
Joining the sandbox is Hong Kong Telecommunications, RD InnoTech, Standard Chartered Bank (Hong Kong), Animoca Brands, and JINGDONG Coinlink Technology, with their participation effective immediately.
The selected entities were identified through their “genuine interest in developing a stablecoin issuance business in Hong Kong”, according to the HKMA.
They are said to have presented a “reasonable business plan” for their proposed operations under the sandbox arrangement, which are to be conducted “within a limited scope and in a risk-controllable manner”.
The regulator goes on to clarify that participants are “expected to comply with the sandbox requirements”, and that with this, selected entities “will not handle the general public’s funds at the initial stage, and will not solicit funding from the public or offer any products associated with the sandbox”.
The HKMA first launched the sandbox this year with a view of “facilitating the sustainable and responsible development of stablecoin ecosystem in Hong Kong”, according to a statement.
In practice, this will enable institutions seeking to issue stablecoins in Hong Kong to trial their operational strategies and converse about the proposed regulatory requirements.
The central banking institution also hints that it is accepting additional institutions to join the initiative, stating that “announcements will be made in a timely manner for any new participants joining the sandbox”.
