14th July 2026
By Shubhii Verma
Cryptocurrency company Payward, the parent firm of U.S.-based exchange Kraken, has selected Hong Kong as its primary gateway for expanding stablecoin operations across Asia, citing the city’s clear regulatory framework, strong financial infrastructure, and strategic position as a bridge between traditional finance and digital assets.
The decision follows Payward’s $600 million acquisition of Hong Kong-based Reap Technologies, a stablecoin-focused payments infrastructure provider. The acquisition marks the company’s largest investment in Asia and forms a key part of its regional expansion strategy.
Regulatory Clarity Drives Hong Kong Selection
According to Payward Co-CEO Arjun Sethi, Hong Kong’s combination of regulatory certainty and multi-currency financial ecosystem made it the preferred choice over other regional financial centers, including Singapore. He noted that while both cities remain important financial hubs, Hong Kong offers a unique advantage as a gateway connecting global businesses with digital asset markets.
Sethi said the company plans to use Hong Kong as its operational base for expanding throughout Asia, including future growth into Singapore and other regional markets. He believes the city’s evolving stablecoin regulations create a safer and more predictable environment for businesses developing blockchain-based financial services.
One of the key advantages of stablecoins, according to Sethi, is their ability to provide around-the-clock liquidity and faster cross-border payments. Traditional banking systems and the global SWIFT network often face delays, particularly outside business hours or in regions with limited financial infrastructure. Stablecoins, operating on blockchain networks, can enable businesses to send and receive payments at any time, helping reduce transaction costs and improve access to capital.
Sethi highlighted the challenges faced by businesses in developing markets across Africa and Latin America, where delays in traditional banking systems can disrupt supply chains and limit financing opportunities. He explained that immediate access to digital payments through stablecoins could help businesses purchase inventory more efficiently and reduce financial friction.
The global stablecoin market has grown rapidly in recent years, with transaction volumes reaching approximately $2.3 trillion in 2025, reflecting increasing adoption among businesses and financial institutions.
Hong Kong has actively positioned itself as a leading global digital asset hub by introducing dedicated regulations for cryptocurrencies and stablecoins. Earlier this year, authorities granted the city’s first stablecoin licenses as part of efforts to build a well-regulated digital finance ecosystem.
Industry Confidence Strengthened by Regulatory Transparency
Daren Guo, co-founder of Reap Technologies, said regulatory clarity has become one of the most important factors for fintech companies operating in the digital asset industry. He noted that Hong Kong’s transparent regulatory approach provides businesses with greater confidence when investing in stablecoin payment infrastructure and expanding their operations across international markets.
