Digital bank ZA Bank has announced that it is the first digital bank in Hong Kong that will provide reserve banking services tailored to stablecoin issuers, following the Hong Kong Monetary Authority (HKMA)’s recent initiative to open sandboxes to stablecoin issuers as part of its commitment to making the city a global leader in the fintech and Web3 ecosystems.

ZA Bank has partnered with Hong Kong fintech RD InnoTech, which was included in a previous batch of the HKMA’s sandbox participants. RD InnoTech will be the inaugural stablecoin issuer to leverage ZA Bank’s reserve banking services. This partnership, the bank says, “marks a critical advancement in strengthening the stability and reliability of digital assets, paving the way for broader adoption and trust in stablecoins”.

Ronald Lu, the bank’s CEO, adds: “We are thrilled to be the first digital bank in Hong Kong to offer innovative banking services for stablecoin issuers. This successfully integrates traditional banking with fintech innovation.

“We are currently onboarding nearly 10 additional stablecoin clients with more in the pipeline. We are pleased to see such progress with the sandbox initiative. By providing a secure and reliable banking infrastructure with greater security for users, we aim to build greater trust and confidence in the stablecoin market.”