Licensed digital asset trading platform EX.IO has signed a MoU with electronic payment provider Payment Asia to explore the use of regulated stablecoins in Hong Kong.
The partnership will focus on payment, custody, trading and application scenarios, with the aim of building infrastructure to support licensed stablecoin issuers and facilitate adoption once implementation begins.
The move follows the Hong Kong Monetary Authority’s (HKMA) announcement on April 10 that it had issued two stablecoin issuer licenses.
EX.IO, one of the first platforms licensed under Hong Kong’s digital asset regulatory framework, provides services including anti-money laundering (AML), Know Your Customer (KYC), and custody.
Payment Asia, founded in 1999, offers online and offline payment solutions across Asia, including card payments, e-wallets and omni-channel systems.
The companies plan to collaborate on custody and exchange services. This includes enabling subscription and trading between stablecoins and fiat currencies such as the US dollar and Hong Kong dollar.
They will also explore merchant acquiring solutions, combining Payment Asia’s merchant network with EX.IO’s trading and custody capabilities to support stablecoin payments and settlement.
Chen Wu, Co-Founder and Chief Executive of EX.IO, said:
“The issuance of Hong Kong’s inaugural licensed stablecoin marks a significant milestone for the local digital asset ecosystem. The current timing of EX.IO’s strategic partnership with Payment Asia is exceptionally opportune.”
Paul Tang, Chief Operating Officer of Payment Asia, said:
“This strategic partnership with EX.IO marks a crucial step forward in building a licensed stablecoin application ecosystem… enabling the real economy to more effectively access the opportunities of the digital asset era.”
Both companies said the collaboration is intended to support the development of Hong Kong’s regulated stablecoin market, which has been projected by some investment banks to reach around US$16 billion.
Featured image credit: Edited by Fintech News Hong Kong, based on image by ilygraphic via Freepik
