Airstar Bank Partners with JD in Exploring New Cross-Border Payment
Solutions for Businesses in HKMA’s Stablecoin Issuer Sandbox
Airstar Bank announced its partnership with JD.com, Inc.’s (“JD” or “JINGDONG”) subsidiary, JINGDONG Coinlink Technology Hong Kong Limited1 (“JINGDONG Coinlink”) in the Hong Kong Monetary Authority’s (“HKMA”) stablecoin2 issuer sandbox. As one of the participating institutions in the Stablecoin issuer sandbox, JINGDONG Coinlink plans to develop a pioneering stablecoin cross-border remittance solution that addresses the cross-border payment challenges faced by many businesses.
The current remittance sector is grappling with high costs from fees, slow bank transfers, and volatile exchange rates. However, stablecoins have the potential to make payment and settlement processes more efficient, transparent, and reliable with distributed ledger technology and immutable transaction data. Airstar Bank is leveraging its strengths as a bank to support JINGDONG Coinlink in exploring new stablecoin-based solutions for cross-border transactions. As a wholly-owned subsidiary of JD Technology, JINGDONG Coinlink aims to provide efficient, affordable, and secure payment solutions for businesses and individuals worldwide. The solutions are designed to simplify cross-border payments for both JINGDONG’s own operations and global businesses.
Mr. Justin Hu, CEO of Airstar Bank, said: “We are delighted to partner with JINGDONG Coinlink on this groundbreaking initiative. Airstar Bank has always been deeply committed to empowering business growth and innovation. Going forward, we will continue striving to provide even better products and services for our business customers by addressing their needs.”
Information revealed that the stablecoin issuer sandbox was launched by the HKMA on 12 March 2024. The HKMA’s stablecoin issuer sandbox enables the HKMA to communicate supervisory expectations and guidance to institutions that plan to issue fiat-referenced stablecoins in Hong Kong. Sandbox participants can test the feasibility of their intended business models and communicate with the HKMA directly to understand how to comply with future regulatory requirements.
Sandbox participants are expected to comply with the sandbox requirements. They will not handle the general public’s funds at the initial stage, and will not solicit funding from the public or offer any products associated with the sandbox. Members of the public should stay vigilant to potential scams purporting to be related to the sandbox. When in doubt, members of the public may contact the HKMA to enquire and confirm about the information of the sandbox participants.
1JD Technology is a subsidiary of JINGDONG, specializing in technology-driven industrial services. JINGDONG Coinlink is a whollyowned subsidiary of JD Technology.
2Stablecoins are virtual assets that are designed to maintain a stable value relative to certain assets, typically currencies.