IDA aims to simplify trade between Hong Kong and Japan with stablecoin in collaboration with Progmat, Datachain, and TOKI.

Table of Contents* 1. Trade Revolution through stablecoin Settlement

• 2. The Reality of High International Remittance Fees
• 3. Expanding the use of stablecoins
• 4. Trade Settlement evolves to the next generation

Trade Revolution through Stablecoin Settlement

The Hong Kong-based digital asset platform company IDA announced on March 21, 2025, that it will commence a joint proof of concept (PoC) utilizing stablecoins for trade transaction settlements between Hong Kong and Japan in collaboration with Progmat, Datachain, and TOKI.

According to the official announcement, this demonstration experiment aims to establish a low-cost and rapid international remittance method using stablecoins linked to the Hong Kong dollar and Japanese yen, compared to traditional bank transfers.

Additionally, IDA offers a stablecoin linked to the Hong Kong dollar, Progmat issues and manages a stablecoin linked to the Japanese yen, and Datachain is responsible for interoperability between different blockchains. It is also explained that Toki provides the cross-chain infrastructure and plays a role in supporting remittance flows.

The Reality of High International Remittance Fees

Trade between Hong Kong and Japan amounts to about HK$300 billion (about ¥5.8 trillion) per year, but with current international remittances via banks, it may take several days to arrive.

Moreover, according to a World Bank survey, international remittance fees remain high at an average of 6.35%, posing a significant burden on businesses.

The trade settlement using the stablecoin promoted by IDA this time is expected to significantly reduce costs and time lags as an alternative to the traditionally high-cost and time-consuming remittances. In Japan, the revised Payment Services Act came into effect in June 2023, legally recognizing remittances using stablecoins.

Regulatory frameworks are also being developed in Hong Kong, and the momentum for the use of digital currencies between the two countries is increasing.

Expanding Use of Stablecoins

This initiative by IDA is seen as an example of the trend of utilizing blockchain technology and digital currencies in the field of international trade. Overseas, major financial institutions and settlement networks are already conducting experiments on cross-border remittances using stablecoins, etc.

In 2023, Visa launched a pilot program to utilize the stablecoin "USDC" on Ethereum (ETH) and Solana (SOL) for part of its settlement network. Kai Sheffield of Visa stated that the goal is to accelerate cross-border payments and improve convenience, with USDC settlements already amounting to several million dollars being processed.

The use of stablecoins by financial institutions is also advancing in Hong Kong. In February 2025, Standard Chartered Hong Kong and Animoca Brands announced the establishment of a joint venture aimed at issuing a Hong Kong dollar-linked stablecoin. After going through the sandbox of the Hong Kong Monetary Authority (HKMA), they aim to provide stablecoins that comply with regulations.

In addition, PayPal in the U.S. issued its own stablecoin "PayPal USD (PYUSD)" in 2023. These initiatives utilizing stablecoins are attracting attention for their potential to transform the very nature of international trade settlements.

Trade Settlement Evolves to the Next Generation

The demonstration experiment by IDA and each company announced this time is positioned as a concrete use case connecting the two markets of Japan and Hong Kong in the global trend described above.

The fusion of international trade and blockchain technology has just begun, but if it reaches practical application, the transfer of export and import payments could become more seamless, potentially providing new options for companies.

The results of this PoC are attracting attention from domestic and international stakeholders as they propose a new approach to future trade Settlement.

*The price is based on the exchange rate at the time of writing (1 Hong Kong Dollar = 19.205 Yen).

Latest cryptocurrency news here

Source: IDA Official Announcement

Writing and Translation: BITTIMES Editorial Department

Thumbnail: Used with permission from Shutterstock's licensing.