Growing Interest in Stablecoin Development in Hong Kong's OneDegree

Interest in Stablecoin Development Grows

OneDegree, a virtual insurance company based in Hong Kong, has received interest from over 100 project teams for stablecoin development. These teams are exploring various applications for stablecoins, including payments, international trade finance, equity and debt capital markets, as well as emerging sectors like defi and gamefi.

This surge in interest aligns with the release of a public consultation paper by Hong Kong’s Financial Services, the Treasury Bureau, and the Hong Kong Monetary Authority, which focuses on stablecoins. OneDegree’s co-founder, Mr. Kwok Yan-lun, acknowledged the significant attention the company has received in relation to stablecoin development. Many of these projects are also considering applying for a Virtual Asset Service Provider (VASP) license in Hong Kong.

The Role of Stablecoins in Web3

Mr. Guo Yanlin, representing OneDegree, emphasized the crucial role of stablecoins in the evolution of web3. He discussed the expanding range of use cases for stablecoins and their growing acceptance in regulated markets. Yanlin predicted that this trend would result in increased trading volumes and capital flows for virtual asset exchanges, custodians, and asset managers.

Advocating for Increased Investor Protection

Given these developments, OneDegree is advocating for an increase in the upper limit of investor protection for warm and hot wallets. The company envisions a more robust and secure future for digital asset transactions.

Hot Take: The Growing Interest in Stablecoin Development

The surge of interest from project teams in stablecoin development indicates the increasing recognition of stablecoins’ potential across various sectors. From payments to trade finance and even emerging areas like defi and gamefi, stablecoins are gaining traction. Hong Kong’s consultation paper on stablecoins has further fueled this interest, with many projects considering obtaining a VASP license in the region.

OneDegree highlights the pivotal role of stablecoins in the web3 evolution and expects their use cases to continue expanding. This growth will likely lead to increased trading volumes and capital flows for virtual asset exchanges and custodians. As the industry progresses, OneDegree advocates for enhanced investor protection to ensure a secure environment for digital asset transactions.