Mainland digital yuan partner signs deal to develop stablecoin tech in Hong Kong

A Beijing-based fintech services provider, which has provided billing systems for China’s digital yuan, has signed a strategic partnership with a Hong Kong firm to tap stablecoin and virtual asset business opportunities, in the latest sign of mainland interest in the city’s recent moves to license cryptocurrency issuers.

Shenzhen-listed North King Information Technology said on Wednesday that it had struck a deal with Hong Kong-listed GoFintech Quantum Innovation to develop infrastructure to support the ecosystem for stablecoins and other cryptocurrencies, as well as tokenised real-world assets (RWAs).

The mainland company said in a statement on Wednesday that it would leverage its information technology capabilities and products to fit into the stablecoin ecosystem by collaborating with stakeholders such as regulators, stablecoin issuers, crypto exchanges and asset custodians. North King said it planned to use Hong Kong as a springboard to expand into the global fintech market.

The plans, according to North King, included developing both hard and soft wallets for stablecoins. GoFintech Quantum is already involved in making hardware wallets. In February, the company formed a joint venture with Quakey Tech, another mainland firm, to develop and sell hardware wallets resistant to quantum computing attacks.

North King and GoFintech did not immediately respond to requests for comment on Wednesday.

Hardware wallets are used for storing cryptocurrency offline, often built with special chips to enforce security. Stablecoins are a type of cryptocurrency pegged to a reference asset, typically backed one-to-one with a fiat currency such as the US dollar.