Reap Welcomes Policy Address and First Five-Year Plan to Promote Cross-Border Financial Innovation

Reap recently welcomed the Policy Address and the first five-year plan, particularly the measures related to finance, trade settlement, and clearing, as well as the supply chain finance strategies to assist small and medium-sized enterprises in expanding their cross-border business.

Challenges and Solutions in Cross-Border Payments

According to Reap co-founder Guo Daren, these measures will encourage manufacturing, logistics, and technology companies to consider conducting order-taking, foreign exchange, and trade financing through Hong Kong. He pointed out that the most vulnerable link in the current cross-border channels is the "last mile," and resolving settlement issues is key.

Guo Daren emphasized that when making payments to suppliers in another market, the most challenging aspect is not finding the supplier, but rather the final process of fund transfer. The "last mile" of payment that Reap is establishing aims to enable real-time settlement of cross-border payments under the existing recognized rules of banks and regulatory bodies, ensuring the security and timeliness of stablecoin settlements.

Hong Kong's Fintech Advantages

Reap collaborates with regulatory bodies, banks, and fintech partners through stablecoin-based payment cards and payment infrastructure to help businesses manage cross-border payments and treasury operations, thereby supporting enterprises in expanding into markets outside Hong Kong.

Guo Daren recalled that eight years ago, Reap chose to start its development in Hong Kong and was successfully acquired by Kraken's parent company Payward for US$600 million in May 2026, becoming one of the largest fintech mergers and acquisitions in Hong Kong. He noted that Hong Kong's unique advantage lies in its ability to support native and large-scale settlements in multiple major currencies while establishing a clear regulatory framework for fiat currencies referencing stablecoins.

He stated that Hong Kong's regulatory bodies remain open and actively engage with the industry, creating an environment that allows Reap to develop steadily. In the future, Reap will continue to collaborate with local banks, licensed issuers, and entrepreneurs to promote the robust development of Hong Kong's fintech ecosystem and build the payment cards and payment infrastructure needed to support cross-border trade over the next decade.