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Hong Kong’s ZA Bank has rolled out its reserve banking services for stablecoin issuers in the region, multiple news outlets, including Hong Kong Business, reported on July 19.

The news comes on the heels of the Hong Kong Monetary Authority (HKMA) announcing the initial participants of its stablecoin testing sandbox, including a coalition by Standard Chartered and Animoca Brands, as the region inches closer to forming a stablecoin regulation.

In April, ZA Bank announced its intention to offer fiat reserve accounts to stablecoin issuers upon their approval to join the HKMA regulatory sandbox.  The bank has now onboarded RD InnoTech, a local stablecoin issuer admitted to the sandbox, as its first client for these specialized services.

Ronald Iu, ZA Bank CEO, said they’re currently in talks with nearly 10 other potential clients interested in issuing stablecoins.

“By providing a secure and reliable banking infrastructure with greater security for users, we aim to build greater trust and confidence in the stablecoin market,” Iu reportedly said.

“[ZA Bank] will continue to introduce more services and products in line with government policies, reinforcing Hong Kong’s position as a global virtual asset hub.”

Hong Kong is actively positioning itself as a digital asset hub in an effort to revitalize its status as a leading financial center. The city, which last year licensed its first crypto trading platforms under new regulations, has now introduced spot Bitcoin and Ether exchange-traded funds (ETFs) for trading.

Meanwhile, ZA Bank’s aggressive outreach to the Web3 sector, where companies previously struggled to access banking services, has reportedly resulted in over $1 billion in transactions from more than 100 Web3 clients.

Read more: Hong Kong legislator seeking crypto, Web3 policy recommendations