HashKey: The first batch of HKDR within 2024
During the Fintech Week 2004, Livio Weng, CEO of HashKey Exchange, announced that Hong Kong's first Hong Kong dollar stablecoin (HKDR) is set to launch as early as the fourth quarter of this year. HashKey Exchange is collaborating with YuanCoin Technology, one of the participants in the stablecoin sandbox, to issue the stablecoin. The company is also actively preparing to launch a withdrawal card, expecting to accelerate related efforts in the next six months.
Weng pointed out that the rise of global trade protectionism and changes in geopolitical situations drive the diversification of payment methods. Existing international payment systems face issues such as weekend settlement difficulties, which regulated stablecoins can address. Regarding the issuance of the withdrawal card, Weng mentioned that the platform is working with banks and card-issuing institutions, although he did not disclose specific partners.
When asked about the Hong Kong government's push for a digital Hong Kong dollar and whether it would conflict with stablecoins, Weng believes that both will focus on different markets. “The world is not black and white,” he stated. “More traditional users might prefer WCBDC, while those more inclined towards blockchain adoption might use HKDR due to its flexibility.”
On the performance of Hong Kong's first virtual asset ETFs, which have underperformed expectations, Weng attributed this mainly to capital outflows resulting from U.S. interest rate hikes over the past two years. He noted that Eastern capital has been depleted during this period, leading to a lack of liquidity in the market. He believes that the Hong Kong stock market was severely oversold earlier this year and expects that as the U.S. enters a rate-cutting cycle, capital will flow back to Hong Kong, initially revitalizing the traditional stock market and subsequently improving ETF trading volumes within a year. He added that the U.S. elections will impact the overall market, but will not directly determine the dynamics between Eastern and Western capital.
As the Chief Operating Officer of HashKey Group, Weng revealed that the group recorded its first monthly profit in May this year. The Hong Kong business is still in the investment phase but is expected to become profitable next year. HashKey Group is also actively evaluating and selecting major global markets for listing, with Hong Kong being one of the target locations.
Regarding the recent release of Binance founder Zhao Changpeng from prison, Weng highlighted that this underscores the inevitable trend toward global compliance. He believes that licensed operations will become a dividing line, with unlicensed and non-compliant markets gradually diminishing while licensed, compliant, and trusted exchanges will thrive.
Weng also mentioned that, with the support of government policies, HashKey Exchange has completed transactions worth HKD 540 billion, with total assets exceeding HKD 5.3 billion, of which HKD 3.5 billion came from trades with financial institution partners. He indicated that custody services are one of HashKey Exchange's most mature areas, as many investors purchase cryptocurrency ETFs through brokerage platforms, all backed by HashKey Exchange's comprehensive Omnibus solutions.
Looking ahead, Weng believes that the outcome of the U.S. elections, along with breakthroughs in Web3 compliance processes in the U.S., Hong Kong, Dubai, and other regions, will usher in a new phase of rapid development in the cryptocurrency market.
