Stablecoin sandbox draws solo, group players

Staff reporter

Five institutions - three of which are in a group - are to join the stablecoin issuer sandbox launched by the Hong Kong Monetary Authority.

Jingdong Coinlink Technology Hong Kong and RD InnoTech are two participants while the group includes Standard Chartered (Hong Kong), Animoca Brands and HKT (6823).

Sandbox participants will not handle the general public's funds at the initial stage and will not solicit funding from the public or offer any products associated with the sandbox, the HKMA said.

HKMA deputy chief executive Darryl Chan Wai-man, however, stressed that sandbox participation is not a prerequisite for the application for a stablecoin issuer license in the future.

Authorities will submit the bill to the Legislative Council this year to implement a regulatory regime for fiat-referenced stablecoin issuers in Hong Kong.

Meanwhile, the latest green bond offering by the Hong Kong government saw over HK$120 billion equivalent in orders from global investors, according to an announcement yesterday.

The deal comprised 10 billion yuan (HK$10.75 billion) worth of offshore yuan bonds with 2, 5, 10, 20, and 30-year maturities - the yields range from 2.6 percent to 3.15 percent.

It also includes a US$1 billion (HK$7.8 billion) three-year US dollar bond and a seven-year 750 million (HK$6.393 billion) euro-denominated bond, with the yields coming in at 4.336 percent and 3.379 percent respectively.

In other news, Hong Kong plans to unveil a roadmap to adapt the localized rules to align with the standards proposed by the International Sustainability Standards Board by the end of this year, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said at an event. The roadmap aims to provide a transparent and clear path for the city's enterprises to prepare for sustainability reporting.