A Hong Kong logistics technology firm said on Monday it plans to apply for a stablecoin issuer license once the city’s new regulations take effect on August 1, joining a growing list of tech and financial services companies looking to tap into opportunities in digital assets.
Reitar Logtech aims to launch its own Hong Kong dollar-pegged stablecoin, RHKD, which will mainly be used for payments and settlements in cross-border e-commerce, logistics, and supply chains.
The company said blockchain technology, which stablecoins are built on, will allow all transactions to be recorded on-chain, enhancing transparency and enabling auditing and tracking of both fund and goods flows.
By integrating smart contracts, payment scenarios — such as cash-on-delivery — will be automated, which could help improve capital efficiency and facilitate transactions within its smart warehouse network.
According to Reitar Logtech, this would transform its storage facilities into hubs for goods transactions, going beyond their traditional logistics functions. The RHKD stablecoin will also connect with digital payment platforms and supply chain finance products.
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Reitar’s announcement comes as other firms, including Ant Group’s Singapore-based unit Ant International, signal plans to enter Hong Kong’s stablecoin market.
The digital payment company said it will apply for a fiat-referenced stablecoins (FRS) issuer’s license once the process is open after the Stablecoins Ordinance takes effect on August 1.
Once the ordinance comes into effect, anyone who issues a FRS in the course of business in Hong Kong, or issues a FRS tied to the value of the Hong Kong dollar either in Hong Kong or elsewhere, will be required to get a license from the Hong Kong Monetary Authority.
ALSO READ: Hong Kong's stablecoins bill to come into force from Aug 1
Hong Kong Financial Secretary Paul Chan Mo-po said on Sunday many market participants have shown strong interest in the new rules.
The HKMA will expedite the processing of license applications after the ordinance is implemented, to enable eligible issuers to launch operations, Chan said.
As part of its push to promote the “sustainable and responsible development” of the stablecoin ecosystem, the HKMA launched a stablecoin issuer sandbox last March. Companies now testing under the sandbox include e-commerce giant JD.com’s Jingdong Coinlink Technology Hong Kong, RD InnoTech, Standard Chartered Bank (Hong Kong), Animoca Brands, and Hong Kong Telecommunications (HKT).
Contact the writer at irisli@chinadailyhk.com
