The payment processor Bitspark has launched the world’s first Hong Kong dollar-linked stablecoin. Until now, many stablecoins were linked to the US dollar, but with this step, Bitspark hopes to be able to bring the benefits of stablecoins to Asia.
Stablecoins are cryptocurrencies that are directly linked to a traditional currency. For every stablecoin that Bitspark issues, the company has 1 HKD on the bank. In this way the value of the crypto can be kept stable at 1, making it an ideal instrument for international transactions.
Since Bitspark is involved in facilitating international payment without involving banks, the new stablecoin, Sparkdex.HDK, is therefore an ideal addition for the company. With the stablecoin the company can convert Hong Kong dollar into the stablecoin, send a payment, after which the recipient can convert the stablecoin back to the Hong Kong dollar. Both parties do not have to worry about a fluctuating course.
Until now, the stablecoins market has been dominated by US dollar-linked stable coins. Cryptos such as Gemini dollar (GUSD) and True USD (TUSD) are noted on many cryptocurrency exchanges and the popularity of these cryptos is increasing. The co-founder and CEO of Bitspark said about the new Hong Kong stablecoin:
We are proud that we have achieved this milestone for both the cryptocurrency and the traditional financial sector, and we expect this to pave the way for the much-needed diversity of other currencies within the stablecoin sector.