BEA and IDA launch HKD-pegged stablecoin

The initiative includes a trial involving a local payment gateway.

The Bank of East Asia (BEA) and Hong Kong-based fintech company IDA partnered to support the city’s digital asset market through the development of a 1:1 HKD-pegged stablecoin. 

The collaboration aims to explore the integration of stablecoins into payment and settlement systems to improve cash flow for businesses and promote economic growth.  

Under this partnership, BEA will serve as the reserve bank and authorised minter, ensuring compliance with regulatory frameworks. 

The initiative includes a trial involving a local payment gateway to test a stablecoin use case designed to simplify payment processes, enhance user experience, and enable instant transactions with minimal fees.  

“Leveraging BEA's financial and relevant regulatory expertise, we will explore a stablecoin use case to enable instant transactions and enhance cash flow for merchants with its 24/7 availability and minimal transaction fees,” Lawrence Chu, Co-Founder & CEO of IDA said in a press release.