Hong Kong-listed company Kest Empire Holdings has announced an investment of HKD 1.7 million to establish a stablecoin research center in collaboration with Hong Kong Polytechnic University. The center aims to conduct comprehensive research and development on stablecoins and the tokenization of real-world assets to meet the regulatory requirements outlined in Hong Kong’s upcoming Stablecoin Bill and Virtual Asset Policy Declaration 2.0. Stablecoins are digital currencies typically pegged to stable assets like the US dollar or gold, designed to reduce cryptocurrency price volatility. With increasing government oversight in Hong Kong to ensure financial stability and consumer protection, the research center will focus on developing tokenization and real-time asset valuation models using artificial intelligence, fostering innovation in financial technology. This investment seeks to strengthen the legal and technical framework for stablecoins in Hong Kong, enhancing the city’s position in regional and global financial markets. The initiative represents a strategic step toward aligning Hong Kong’s financial sector with modern demands and playing a key role amid the growing popularity of virtual assets. While such research centers could improve transparency and provide reliable technical solutions in financial services, regulatory challenges and market uncertainties remain significant risks.
Source: binance
