Brazilian fintech unicorn Ebanx sees Hong Kong emerging as a stablecoin payment hub for mainland Chinese companies engaged in international trade, as its CEO visited the city’s largest-ever Fintech Week to explore expansion opportunities.
Hong Kong could serve as “a kind of initial validation, initial test” for Chinese companies exploring stablecoin use in cross-border commerce, said Joao Del Valle, CEO and co-founder of global digital payment services provider Ebanx, in a recent interview with the Post.
Del Valle said he expected more mainland companies would use stablecoins for international trade settlement in Hong Kong. Ebanx was considering integrating stablecoins into its artificial intelligence-powered payment system to facilitate business with global merchants, including those from the mainland.
Hong Kong’s new stablecoin regulations are “transformational”, Del Valle added. “It’s kind of an entry into [mainland] China. I think that is the most attractive aspect of it”, though “the adoption [of stablecoins] might be gradual”.
Ebanx’s Hong Kong exploration coincides with the city’s launch of the world’s pioneering stablecoin laws on August 1. Photo: Shutterstock
“Hong Kong for us … [is] an exploration and we are positive that it can drive some business in the future,” Del Valle said. The company expected “some significant growth next year in stablecoin use as a payment method [globally]” since international transfers took only seconds, compared to one to two days for traditional wire transfers, he said.
Ebanx’s Hong Kong exploration coincides with the city’s launch of the world’s pioneering stablecoin laws on August 1. The framework, administered by the Hong Kong Monetary Authority, requires stablecoin issuers to obtain licences and maintain reserve backing with high-quality liquid assets.
