Chinese E-commerce: JD to Launch First HKD Stablecoin on Blockchain

Bittime - Chinese e-commerce giant JD.com announced plans to issue the first stablecoin whose value is pegged 1:1 to the Hong Kong Dollar (HKD). 

This stablecoin will later be stored on a public blockchain, a technology that ensures transparency and security of transactions.

HKD Stablecoin Will Be Issued JD Coinlink

The launch of the HKD stablecoin will be carried out through JD Coinlink, a Hong Kong-focused subsidiary of JD.com. Interestingly, JD Coinlink was one of three companies selected by the Hong Kong Monetary Authority (HKMA) to participate in the "stablecoin sandbox" program on July 18. 

This program aims to test the controlled issuance and use of stablecoins.

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Stablecoin JD Easy to Access and Use

In the future, the HKD stablecoin will not only be accessible to financial institutions, but also to individuals. Users can make transactions using this stablecoin on various popular blockchains, such as Binance Smart Chain (BSC), Ethereum, and TRON (TRC20). 

However, JD.com has not officially announced which blockchain it will use first.

JD.com hopes that the HKD stablecoin can become an efficient, cost-effective and secure payment solution for business people. With this stablecoin, business actors can receive payments for goods and services more easily and quickly.

Company Affirms Security

Despite being the first to issue HKD stablecoins, JD Coinlink emphasized that they are not a licensed stablecoin issuer. The company also emphasized that it does not support possible price fluctuations in this digital asset, as TerraUSD has experienced in the past. 

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However, JD Coinlink is committed to ensuring their stablecoin complies with all applicable regulations in Hong Kong. They will also work closely with relevant authorities outside Hong Kong to ensure compliance with existing and future regulations.

HKD Stablecoin Will Audited Periodically

To maintain user trust, JD Coinlink will not be the main party holding stablecoins. Once launched, these digital assets will be held in independent accounts at licensed financial institutions. 

Apart from that, JD Coinlink will also carry out regular audits and check reserves regularly to ensure the value of stablecoins is always maintained in accordance with a 1:1 ratio with HKD. This is in accordance with the new regulations regarding stablecoins in Hong Kong.

Crypto-Friendly Hong Kong

Hong Kong itself is known as one of the crypto-friendly countries. The country already has a comprehensive regulatory framework for the issuance and use of digital assets. 

In 2023, Hong Kong opened its doors to crypto exchanges through a new licensing program implemented in June. Currently, the country is home to renowned crypto companies such as HashKey Exchange and OSL Digital Securities Limited (OSL).

JD.com's move to issue the HKD stablecoin further strengthens Hong Kong's position as a leading financial center in Asia. In fact, in September 2023, Hong Kong was named the country with the best readiness for crypto adoption for the second year in a row. 

With a crypto readiness rating of 8.36, Hong Kong managed to outperform the United States and Switzerland.

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