Fintech Firm Launches World’s First Hong Kong Dollar-Pegged Stablecoin
Bitspark, a firm that claims to be the world’s first bankless money transfer platform, has launched Sparkdex.HKD, the first stablecoin pegged to the Hong Kong Dollar (HKD). This is to encourage stablecoin diversification in other national currencies aside from the U.S. dollar, according to a Fintech Hong Kong report on January 29, 2019.
First Stablecoin Pegged to the HongKong Dollar
Per sources close to the matter, Bitspark has launched Sparkdex.HKD as the first stablecoin backed 1:1 by the Hong Kong Dollar.
Sparkdex.HKD’s collateral has reportedly been reserved by the fintech, and the firm says the physical cash held in reserve will be audited on a regular basis by a local audit firm which will present a quarterly report to the public.
While pointing out what led to the initiative, George Harrap, Co-Founder, and CEO of Bitspark stated that there are other fiat currencies in the world, however, the market has been dominated with stablecoins backed by the U.S. dollars and GBP.
Making a Difference
Against that backdrop, the firm decided to create something different. “We are proud to have pioneered this landmark first for both the cryptocurrency and traditional finance industry,” said Harrap
That being the case, the company is hopeful that this will encourage the development of diverse stablecoins pegged to other currencies beyond USD.
Reportedly, Sparkdex.HKD was first listed on Sparkdex, a cryptocurrency exchange owned by Bitspark in October 2018. Also, the digital asset’s market capitalization after a month was HKD 500,000 (~$63,750).
Notably, stablecoins are steadily gaining traction in the cryptospace as forward-thinking hodlers may be using the non-volatile virtual currencies to overcome the bear market. For the uninitiated, stablecoins are less volatile than other cryptocurrencies and they are either pegged to an asset, commodity, or another cryptocurrency.
Many are usually pegged to the U.S. dollar, including the controversial Tether (USDT), Gemini (GUSD), TrueUSD, and USD Coin (USDC).
On August 30, 2018, BTCManager reported that Binance, Huobi, OKEx, and Dunamu cryptocurrency exchanges had collaborated in a $32 million project to develop the Terra stablecoin.
On January 22, 2019, BTCManager also informed that Crypto Garage had been approved by the Japanese Financial Services Agency (FSA) to pilot the delivery versus payment settlement service between a Japanese Yen stablecoin and digital assets.