:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/7CMIC2ZQNBDNDDVZXTN3KPNPK4.jpg "ZA Bank in Hong Kong aims to be the bank of choice for crypto startups")
As crypto firms Signature Bank and Silvergate collapse, a virtual bank in Hong Kong welcomes Web3 startups.
Hong Kong-based ZA Bank is now authorized to act as settlement bank for the city's regulated Web3 companies, the company said today at the Hong Kong Web3 Festival, an event backed by the Hong Kong government. throughout Asia.
An online bank is set up to facilitate conversion of cryptocurrencies to fiat along with two Hong Kong licensed exchanges, Hashkey and OSL, where customers can exchange cryptocurrencies for fiat currencies. In other words, some conversions from cryptocurrency to fiat are done directly on regulated exchanges instead of ZA Bank.
ZA Bank will likely clear transactions for more cryptocurrency exchanges as more companies apply for digital asset licenses from Hong Kong authorities.
In addition, ZA Bank, founded in 2017 by Chinese online insurance company ZhongAn as one of Hong Kong's first virtual banks, has started providing core banking services to local Web3 startups, a business segment largely absent in traditional financial institutions. .
It will be interesting to see if other online banking groups in Hong Kong follow suit to compete for Web3 clients, and whether ZA Bank's offer will attract more crypto firms to set up shop in the Asian financial hub. .
The move comes as Hong Kong tries to position itself as a cryptocurrency-friendly alternative to hubs such as the United States and Singapore, and as a sandbox for Web3 startups in China, where cryptocurrency trading is illegal. The city is currently reviewing its digital asset regulatory framework, which plans to legalize retail trading of major cryptocurrencies such as bitcoin and ether.
said Ronald Eyo, CEO of ZA Bank.
This signal increases acceptance and recognition of the importance of this new industry and hopefully encourages other financial institutions to follow suit by offering dedicated Web3 business banking services. We look forward to exploring partnerships with leading global Web3 companies such as HashKey, OKX and others.