The virtual bank from Hong Kong, aptly named ‘Bank of Blockchain,’ is confident that web3 startups will find its services useful and welcoming. The bank offers a range of services catering to cryptocurrency firms, including banking and trading tools, as well as disaster planning and insurance.
ZA Bank, which is based in Hong Kong, was recently allowed to serve as the settlement bank for regulated web3 companies in the city. This move is likely to attract more institutional investors and crypto startups to Hong Kong, which is a hub for blockchain and digital asset innovation.
Traditional banks have been slow to adapt to the tidal wave of cryptocurrencies, but online banks are starting to take notice. ZA Bank is set to facilitate crypto-fiat conversions through two licensed exchanges in Hong Kong. This will allow customers to swap their crypto into fiat currencies, which should make trading and investing in cryptocurrencies a lot easier.
The increasing interest in cryptocurrency trading by large, traditional financial institutions has likely led to a increase in requests from ZA Bank to transact business with more crypto exchanges. The permitting process for digital assets in Hong Kong is still relatively new, so it is likely that more companies will be applying for permits in the future. This could lead to an increase in the volume of trades conducted between cryptocurrencies and Za bank, as well as other major financial institutions.
The arrival of ZA Bank into the local web3 startup space represents a significant development in the banking sector’s willingness to provide services to small businesses. While traditional financial institutions remain largely uninterested in offering services to these firms, ZA Bank is hoping its easy-to-use platform and strong customer service will help it gain a foothold in this underdeveloped market.
The recent openings of ZA Bank and BBVA in Hong Kong, as well as the impending launches of other online banks in the city, suggests that cryptocurrencies are becoming increasingly popular in the Asia financial center. Crypto companies may look to this region as a destination for setting up shop given its established banking infrastructure and growing market appeal.
As Hong Kong ramps up its efforts to become a global crypto-regulatory hub, it may be looking to move its digital assets exchange platform away from mainland China. This could provide an outlet for crypto businesses that originate from the mainland, where trading in cryptocurrencies is illegal. If successful, this would position Hong Kong as a key rival to other major hubs like the U.S. and Singapore, while also paving the way for more blockchain companies from within China.
Ronald Iu, CEO of ZA Bank, believes that the online account opening for Web3 startups represents a major step forward in the integration of traditional banking services with the Web3 world. By providing an easy way for aspiring entrepreneurs to get started banked online, ZA Bank is helping to foster a more open and secure Internet economy.
HashKey, OKX, and other leading Web3 companies are continuing to increase their presence in the financial sector, signaling a greater acceptance and recognition of the importance of this emerging sector. This move is likely to encourage other financial institutions to follow suit in offering tailored banking services for Web3 companies.
