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This afternoon, I was looking at some key points about Hong Kong's Compliance stablecoin. It's quite interesting. Making some notes.
1) Reserve assets: Accept cash in HKD and USD, government bonds with a maturity of less than three months, and deposit certificates from licensed banks in HK. BTC, ETH, and other cryptocurrencies are not accepted as reserve assets.
2) Total custodial assets = Total issuance * 102%, 2% as a buffer cost.
3) Custodian: Only licensed banks in Hong Kong and trust companies approved by the Securities and Futures Commission are allowed.
4) Audit: Conducted by an auditing agency to verify that reserve assets ≥ total value of circulating stablecoins + buffer capital daily. (The expected audit fee for a year is likely to exceed ten million HKD.)
5) Redemption: Requires t+1 arrival, proof of the ability to withstand a concentrated redemption shock of 30% circulation on a single day. The sandbox testing requires 1000 stress tests per second.
6) The application process is to first enter the sandbox and then apply for the license, helping enterprises save unnecessary margin costs. (A formal license requires a deposit of 20 million HKD.)
7) The companies currently entering the sandbox testing are: JD Coin Chain, Yuan Coin Technology (which is going to issue HKDR), and Anchorpoint Financial (a joint entity established by Standard Chartered Bank, Animoca Brands, and Hong Kong Telecommunications).
1) Reserve assets: Accept cash in HKD and USD, government bonds with a maturity of less than three months, and deposit certificates from licensed banks in HK. BTC, ETH, and other cryptocurrencies are not accepted as reserve assets.
2) Total custodial assets = total issuance * 102%, with 2% as a buffer cost.
3) Custodian institutions: Only licensed banks in Hong Kong and trusts permitted by the Securities and Futures Commission are allowed.
4) Auditing: An auditing firm must verify reserve assets daily to ensure they are ≥ the total value of circulating stablecoins + buffer capital. (The auditing fee is expected to exceed 10 million HKD per year.)
5) Redemption: Needs to be credited T+1, and proof is required to demonstrate the ability to withstand a concentrated redemption shock of 30% of the daily circulating supply. The sandbox test requires 1,000 transactions per second.
6) The application process is to enter the sandbox first, then apply for a license, helping companies save unnecessary Margin costs. (A formal license requires a deposit of 20 million HKD.)
7) Currently, companies entering the sandbox test include: JD Coin Chain, Yuan Coin Technology (planning to issue HKDR), and Anchorpoint Financial (a joint entity established by Standard Chartered Bank, Animoca Brands, and Hong Kong Telecom).