Core Viewpoint - StoneLink Limited and Tykhe Capital Group Limited have officially established a technological collaboration to enhance the compliance technology for virtual assets, tokenization of physical assets, stablecoin custody mechanisms, and blockchain infrastructure in Hong Kong [1][4]. Group 1: Company Profiles - Tykhe Group is a leading digital financial group in Hong Kong, owning several licensed or compliant entities, including the top virtual asset trading platform HKbitEX and a pioneering asset management company [2]. - StoneLink is a prominent fintech service provider focused on digital asset infrastructure, blockchain technology, and compliance technology, with extensive experience in providing end-to-end digital technology capabilities [3]. Group 2: Collaboration Focus Areas - Research on compliance technology for the entire lifecycle of virtual assets, including issuance, trading, clearing, and settlement, to develop systems that meet Hong Kong's regulatory requirements [4]. - Exploration of tokenization paths and underlying infrastructure, focusing on the feasibility of tokenizing physical assets and the design of blockchain infrastructure [4]. - Development of stablecoin custody and on-chain settlement mechanisms tailored for the Hong Kong market to ensure safety and compliance in the issuance and circulation of stablecoins [4]. - Participation in the formulation of standards and policy research related to virtual asset technology, aiming to enhance Hong Kong's international influence in digital asset technology standards [4].

Group 1 - The State Taxation Administration has intensified the crackdown on tax evasion by online anchors, with over 360 cases investigated since 2021, resulting in tax recovery exceeding 3 billion yuan [1] - The People's Bank of China conducted a reverse repurchase operation of 789.3 billion yuan, with a net injection of 601.8 billion yuan, the second-highest this year, to address liquidity pressure and rising funding rates [1] Group 2 - Several rural commercial banks in Hunan have adjusted ATM service rules, prohibiting withdrawals using other bank cards from midnight to 6 AM, as a measure against fraud [2] - The People's Bank of China and the General Administration of Customs are seeking public opinions on optimizing the cross-border cash transport process for the renminbi [2] Group 3 - Hong Kong's banking sector is preparing for the implementation of the Stablecoin Ordinance, which requires stablecoin issuers to select licensed banks for asset custody, leading to increased competition among banks for custody services [3] - Ruifeng Bank successfully issued 300 million yuan in technology innovation bonds, with a low coupon rate of 1.77%, aimed at supporting technology innovation [4] Group 4 - Agricultural Bank of China has made personnel adjustments in its technology sector, appointing new executives to enhance its digital transformation efforts [5] - Many banks have emphasized growth and risk management in their mid-year meetings, focusing on increasing revenue, optimizing asset-liability structures, and enhancing digital transformation [5][6]

Core Viewpoint - The upcoming implementation of Hong Kong's Stablecoin Regulation is creating new business opportunities for the banking sector, particularly in custody services for reserve assets [1][2]. Group 1: Custody Business Opportunities - Banks selected as custodians for stablecoin issuers can gain valuable non-interest income amidst narrowing net interest margins [2][11]. - Notable banks such as ZhongAn Bank and Deutsche Bank have already been chosen by institutions for custody services, while Standard Chartered and Tianxing Bank are potential candidates [2][4]. - The Hong Kong banking sector is large, with potential for multiple issuers to select the same custodian, raising questions about the number of licenses to be issued [2][3]. Group 2: Regulatory Environment - The Hong Kong Monetary Authority (HKMA) is tightening regulations on virtual asset custody, which may lead to the consolidation of license types [2][12]. - The HKMA has indicated that only a few licenses will be granted initially, despite significant interest from various institutions [7][12]. Group 3: Market Dynamics - The average custody fee in the industry ranges from 0.1% to 0.5%, with negotiations likely to occur between issuers and custodians [11]. - The example of Circle, which pays over $100 million annually to its custodian for managing over $60 billion in reserves, illustrates the potential revenue from custody services [11]. Group 4: Competitive Landscape - Ant Group is also entering the stablecoin market, with its Ant International selecting Deutsche Bank as its reserve bank [7]. - Other banks, including China Merchants Bank, are actively promoting their stablecoin custody services, indicating a competitive landscape [9].