HKMA Reveals Participants for Stablecoin Issuer Sandbox

The Hong Kong Monetary Authority (HKMA) has unveiled the list of participants for its stablecoin issuer sandbox, a significant initiative aimed at promoting the sustainable and responsible development of the stablecoin ecosystem in Hong Kong.

Participants Announced

In a press release dated July 18, 2024, the HKMA disclosed the names of the institutions selected to join the sandbox. These participants include:

• JINGDONG Coinlink Technology Hong Kong Limited
• RD InnoTech Limited
• A consortium comprising Standard Chartered Bank (Hong Kong) Limited, Animoca Brands Limited, and Hong Kong Telecommunications (HKT) Limited

These institutions were chosen based on their demonstrated interest in developing stablecoin issuance businesses in Hong Kong, coupled with reasonable business plans and risk-controlled operational proposals.

Sandbox Objectives

Launched in March 2024, the sandbox is part of the HKMA's broader efforts to facilitate the growth of the stablecoin sector. It allows institutions to test their operational plans and engage in two-way communication regarding regulatory requirements. This collaborative approach aims to establish a fit-for-purpose and risk-based regulatory framework for stablecoins.

Operational Guidelines

Participants in the sandbox are required to adhere to specific guidelines. Initially, they will not handle public funds or solicit investments from the general public. The HKMA has emphasized the importance of public vigilance against potential scams claiming association with the sandbox.

The HKMA has also indicated that it will make separate announcements if sandbox participants are permitted to handle public funds within a limited scope, following adjustments to the testing parameters.

Future Developments

The HKMA will continue to manage enquiries and applications for sandbox participation, ensuring timely announcements for any new entrants. This initiative underscores the HKMA's commitment to fostering innovation and ensuring the stability of the financial ecosystem in Hong Kong.

For more details, please refer to the official announcement by the Hong Kong Monetary Authority.