ZA Group announced it has led a US$40 million Series A2 investment round in RD Technologies, which is one of just three participants in the Hong Kong stablecoin sandbox. There’s significant excitement in the sector with Hong Kong’s stablecoin legislation coming into force this week. ZA Group is the parent of Hong Kong’s first and largest digital bank, ZA Bank. The group is controlled by China’s ZhongAn Insurance, which was founded by the Chairmen of Alibaba, Tencent and PingAn Insurance.
With Hong Kong‘s stringent compliance rules, including a requirement to identify every stablecoin holder, massive early traction is not expected. The Hong Kong Monetary Authority has warned that very few stablecoin issuer applicants will succeed in the first phase, making the sandbox participants such as RD with its HKDR stablecoin, more likely successful candidates.
The other stablecoin sandbox participants are a joint venture involving Standard Chartered, HK Telecom and Animoca Brands, and JD Coinlink, a subsidiary of China’s large e-commerce firm JD.com. Yesterday news circulated on the internet about a JD trademark registration. However, since this news wasn’t officially announced and the trademark differs from expectations, there’s a risk it originated from bad actors attempting to pose as a legitimate project. Meanwhile, Hong Kong’s first stablecoin approval is expected early next year.
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