Hong Kong’s IDA partners with Japanese firms to build stablecoin cross-border remittance service

Hong Kong Digital Asset Company, Ida Finance, is associated with the Japanese banking group Progmat and other companies to develop a stablecoin discount service between the two regions.

According to a recent The press release, IDA and Progmat include also working with Japanese blockchain Firm datachain and toki cross -infrastructure provider to build concept proof or a POC that allows stable Transfrontal transactions between Hong Kong and Japan.

The POC is intended to provide merchants with an alternative asset for export importing transactions between the two regions using blockchain technology. It will also identify improvements and potential advantages that can be made to current trade routes as well as on regulatory and compliance considerations.

The use of stablecoins for cross -border paymentsIn particular in the trade in raw materials, we have long been thinking of important advantages. The Stablecoin transaction generally takes less time to deal with compared to regular credit transfers and can provide confirmation of payment in a few seconds.

IDA, Progmatus, Datachain and Toki provide that a user tests the service by making a cross -border payment request using Stablecoins denominated in the Japanese Yen and the Hong Kong dollar through local partners outside the ramp.

The IDA will be responsible for maintaining reserve support 1: 1 for the stablecoins, while Progmat will issue the Stablecoins and provide the platform, Coin Progmat. On the other hand, Datachain will develop and implement the technology necessary for the exchanges of stable frights and Toki will give its transversal expertise to the project.

The co-founder of Ida, Sean Lee, cited data Hong Kong Trade Development Council archives in 2023, which showed that Japan was the fifth largest trading partner in Hong Kong.

“Stablecoins emerging as a viable alternative to traditional transmission methods, as well as the regulatory clarity of the stablescoin of the two regions, the growth potential in this area is enormous,” said Lee in his declaration.

In recent months, Hong Kong and Japan have both put pressure for more stablecoin regulations in the hope of increasing adoption. Hong Kong Financial Services Secretary Christopher Hui, said the region will be focus On tokenization and stablecoins in its efforts to transform into an cryptographic center. Hui too presented A bill on differences to the legislative council in December 2024.

Meanwhile, Japan legislators continue to put pressure for a Crypto reform bill This would allow stablecoins to be supported by short -term state bonds and a term deposits a 50%higher limit. The bill is already headed to the national regime after receiving the approval of the Japanese cabinet.