Why did Hong Kong choose JD.com for its stablecoin sandbox?

July is a hot month, and the Hong Kong cryptocurrency market is also “hot”.

7 Month 18, the Hong Kong Monetary Authority announced the list of participants in the "Sandbox" for stablecoin issuers, including JD CoinChain Technology (Hong Kong), JD.com is said to issue a stablecoin pegged to the Hong Kong dollar1:1.

BitkoalaKaola Finance learned that the Hong Kong Stablecoin Issuer "Sandbox" was launched in March this year, which is one of the measures taken by the HKMA to promote the sustainable and responsible development of the Hong Kong stablecoin ecosystem. The HKMA uses the "Sandbox" to allow institutions that intend to issue stablecoins in Hong Kong to test their operational plans and conduct two-way communication on the proposed regulatory requirements to formulate a regulatory system that is fit-for-purpose and risk-based. JD CoinChain Technology (Hong Kong) Hong Kong Stablecoin Sandbox, why did you choose JD?

JINGDONG Coinlink Technology Hong Kong Limited is the issuer of the stable currency launched by the Hong Kong Monetary Authority“Sandbox”One ​​of the participating institutions in the program, as the first to enter”Sandbox” As one of the institutions participating in the test, JD CoinChain Technology has made solid progress in the construction of digital currency payment systems and blockchain infrastructure. The main goal of JD CoinChain Technology's digital currency payment system is to simplify the payment process and improve the efficiency of cross-border payments. Although the specific details may not be disclosed due to commercial sensitivity, we can reasonably speculate that its features include: 1. Efficiency: JD CoinChain Technology's payment system may use blockchain technology to ensure fast confirmation and efficient processing of transactions.

2. Security: Digital currency payment systems usually have strong security measures to protect users' funds and privacy.

3. Cross-border payment: As a company participating in the “Sandbox”, JD CoinChain Technology may focus on cross-border payment solutions, enabling users to conduct international transactions more conveniently.

It is not difficult to see that the main business of JD Coin Chain Technology includes digital currency payment system and blockchain infrastructure construction. It is worth mentioning that the company has also made early arrangements and obtained the Hong Kong Securities and Futures Commission (SFC's Class 1 (Securities Trading), Class 2 (Securities Trading), Class 3 (Securities Trading), Class 4 (Securities Trading), Class 5 (Securities Trading), Class 6 (Securities Trading), Class 7 (Securities Trading), Class 8 (Securities Trading), Class 9 (Securities Trading), Class 10 (Securities Trading), Class 11 (Securities Trading), Class 12 (Securities Trading), Class 13 (Securities Trading), Class 14 (Securities Trading), Class 15 (Securities Trading), Class 16 (Securities Trading), Class 17 (Securities Trading), Class 18 (Securities Trading), Class 19 (Securities Trading), Class 21 (Securities Trading), Class 22 (Securities Trading), Class 23 (Securities Trading), Class 24 (Securities Trading), Class 25 (Securities Trading), Class 26 (Securities Trading), Class 27 (Securities Trading), Class 28 (Securities Trading), Class 29 (Securities Trading), Class 3 ... color:#333333;background: white;">4Type (providing advice on securities) and9Type (asset management) licences.

Market impact of JD.com's inclusion in the Hong Kong Stablecoin Sandbox

The impact of JD.com's inclusion in the Hong Kong Stablecoin Sandbox may cover the following aspects:

1.Increased market recognition: As one of the first stablecoin issuers, JD.com's CoinChain Technology will receive more attention. This will help increase its brand awareness and may attract more investors and users.

2. Cross-border payment innovation: Stablecoins have great potential in cross-border payments. JD CoinChain Technology can use this opportunity to test its solutions, improve cross-border payment efficiency and reduce costs.

3. Regulatory compliance challenges: Entering the Hong Kong Stablecoin Sandbox does not mean there are no regulatory requirements. JD CoinChain Technology needs to comply with relevant regulations to ensure that its stablecoin issuance and operations are compliant.

4. Responses from other competitors: Other stablecoin issuers may pay close attention to JD CoinChain Technology's moves. They may take similar steps or strengthen their own competitive advantages.

In fact, in addition to JD.com, Yuanbi Innovation Technology Co., Ltd. and Standard Chartered Bank (Hong Kong) and other institutions have also been selected for this Hong Kong Stablecoin Sandbox. These institutions will be in“Sandbox”testing their stablecoin issuance business in the "Sandbox" to promote the sustainable development and responsible development of Hong Kong's stablecoin ecosystem, which may have the following impacts on Hong Kong's financial market in the future:

1.Innovation promotion: These companies will test the stablecoin issuance business in the "Sandbox", which will help promote the innovation of stablecoin technology and solutions. This may prompt other financial institutions to follow up and explore more digital currencies and payment methods.

2. Increased market attention: Companies selected into the “Sandbox”will receive more attention. This may attract investors, partners and users, creating more opportunities for the company's development.

3. Discussion on regulatory compliance: These companies need to comply with relevant regulations to ensure that their stablecoin issuance and operations are compliant. This will also become the focus of regulators.

Summary

There is no doubt that JD Technology's JD Coin Chain Technology (Hong Kong) will issue a stable currency in Hong Kong that is pegged to the Hong Kong dollar at a 1:1 ratio.has attracted widespread attention in the market. This move is really surprising in the context of the rapid retreat of domestic major companies after entering the encryption field.

In fact, the Hong Kong Monetary Authority launched the stable currency issuer“Sandbox”, allowing the testing of stablecoin issuance within the scope of supervision. This policy shows that Hong Kong is open to the development of the virtual asset market and is expected to attract more international virtual asset companies to set up businesses in Hong Kong and enhance Hong Kong's status as an international financial center.

Although JD.com has a relatively limited share of the domestic blockchain market, it still has a strong market foundation in the direction of traceability and evidence storage. The launch of the stable currency may be aimed at the payment business“money-making effect”