IDA Finance Hong Kong Limited (IDA), a leading digital asset company based in Hong Kong, Progmat Inc. (Progmat), a digital assets platform provider backed by Japan's largest banking groups and technology firms, Datachain, Inc. (Datachain), a leading blockchain firm in Japan, and TOKI FZCO (TOKI), a cross-chain infrastructure provider, have announced a strategic partnership to develop a proof of concept (PoC) to enable stablecoin-based cross-border use cases between Hong Kong and Japan.
IDA Finance Hong Kong Limited (IDA), a leading digital asset company based in Hong Kong, Progmat Inc. (Progmat), a digital assets platform provider backed by Japan’s largest banking groups and technology firms, Datachain, Inc. (Datachain), a leading blockchain firm in Japan, and TOKI FZCO (TOKI), a cross-chain infrastructure provider, have announced a strategic partnership to develop a proof of concept (PoC) to enable stablecoin-based cross-border use cases between Hong Kong and Japan.
The PoC will explore the potential of stablecoins to facilitate efficient and cost-effective cross-border payments and remittances, ultimately contributing to increased trade and economic activity between the two regions. It will also examine the technical and regulatory feasibility of using blockchain technology to integrate stablecoins into existing financial systems.
The initiative aims to provide a viable alternative for initiating, processing, and settling import/export trades between Japan and Hong Kong using stablecoins and blockchain technology. Both regions are positioned as attractive destinations for stablecoin issuance and related activities. This initiative demonstrates a robust commitment to creating a secure and efficient framework for digital assets, supported by regulatory clarity from both Hong Kong and Japan regarding stablecoin development.
“According to the Hong Kong Trade Development Council (HKTDC), Japan was Hong Kong’s fifth-largest trading partner in 2023, making it one of the largest markets for imports and exports. With stablecoins emerging as a viable alternative to traditional remittance methods, along with stablecoin regulatory clarity from both regions, the potential for growth in this area is enormous,” said Sean Lee, Co-Founder of IDA.
This PoC will evaluate the improvements and benefits compared to current trade routes while addressing regulatory and compliance considerations. As a starting point, IDA, Progmat, Datachain and TOKI will identify a testing user to initiate a cross-border payment request using stablecoins denominated in Japanese Yen and Hong Kong Dollars. The parties will ensure successful receipt of both stablecoins and fiat funds through local off-ramp partners. IDA will maintain robust monetary management and a transparent 1:1 reserve backing, strictly adhering to regulatory compliance under Hong Kong’s regime. Progmat will provide the stablecoin issuance and management platform, Progmat Coin. Datachain will support the development and implementation of cross-border stablecoin exchanges. TOKI will leverage its cross-chain expertise to enable seamless cross-chain transactions.
This initiative aligns with the broader industry efforts to promote the use of stablecoins and blockchain technology for cross-border payments and trade finance. As the ecosystem matures and integrates, we can anticipate the development of even more sophisticated and efficient solutions for facilitating global commerce and economic cooperation.
