Thomas Daniels
A stablecoin-powered cross-border remittance service has been launched by Hong Kong-based digital asset firm IDA Finance in collaboration with Japan’s Progmat Inc., blockchain developer Datachain Inc., and cross-chain infrastructure provider TOKI FZCO. The partnership seeks to expedite import-export transactions between Japan and Hong Kong by utilizing blockchain technology.
A proof-of-concept (PoC) for stablecoin-denominated payments in Hong Kong dollars and Japanese yen will be created by the consortium. By cutting down on transaction delays and increasing efficiency, this project aims to provide traders with a quicker and more dependable substitute for conventional cross-border payment systems.
To ensure monetary stability and user trust, IDA Finance would keep a 1:1 reserve backing for the issued stablecoins within the project framework. Progmat Inc. will use Progmat Coin, its digital asset platform, to manage the issuing procedure. To guarantee smooth cross-chain operation, TOKI FZCO offers its experience in blockchain interoperability, while Datachain Inc. will spearhead the development of the cross-border exchange technology.
According to 2023 data from the Hong Kong Trade Development Council, Japan is Hong Kong’s fifth-largest trading partner, according to Sean Lee, co-founder of IDA. “The potential for growth in this area is enormous, given stablecoins’ emergence as a viable alternative to traditional remittance methods and the regulatory clarity of stablecoins from both regions,” Lee added.
Additionally, the initiative coincides with a more general change in regulations in both jurisdictions. To establish a precise legislative framework for stablecoin issuance and circulation, Hong Kong introduced the Stablecoins Bill in December 2024. At the same time, a crypto reform measure has been advanced by Japanese MPs that would allow stablecoins to be backed by fixed-term deposits and short-term government bonds up to a 50% ceiling.
This multi-party partnership demonstrates a strong commitment to modernizing cross-border payments and enhancing financial links between Hong Kong and Japan by coordinating technical innovation with changing regulatory frameworks.
