One of China's largest retailers, JD.com, has announced the launch of the first ever stablecoin pegged to the Hong Kong dollar. The issuance of the asset will be handled by their Hong Kong-based JD Coinlink division. The firm was previously one of three companies selected by the Hong Kong Monetary Authority to participate in the Stablecoin sandbox program.

Once the stablecoin is launched, institutional and retail traders will be able to use it on several public blockchains, including Binance Smart Chain (BSC), Ethereum and TRON (TRC20). JD Coinlink has yet to select a specific network for the startup.

JD.com officials believe that the issuance of a stablecoin pegged to the Hong Kong dollar will provide companies with “efficient, cost-effective and secure payment solutions.” The asset will be able to be used to pay for goods and services, making transactions much easier and cheaper.

After announcing the launch of the stablecoin, JD Coinlink clarified that it will not act as a licensed issuer of the asset or its primary custodian. The funds will be held in the accounts of several financial institutions. In addition, the company emphasized that it does not support or endorse digital assets as they can negatively impact market volatility.

However, JD Coinlink plans to conduct regular audits and reserve checks to ensure assets are fully collateralized at a 1:1 ratio, as required by new Hong Kong regulations. This should increase confidence in the new stablecoin and ensure its stability and reliability in the market.