OK Group’s founder, Star Xu, has announced a partnership with blockchain-focused trust company Prime Trust, potentially allowing the firm to launch its own compliant stable coin.
The news came in a tweet from Star Xu on March 28, retweeting an earlier March 27 tweet from Prime Trust announcing the partnership.
Star Xu has claimed that the new partnership will see OK Group undertaking “an in-depth collaboration and offer[ing] diverse, secure and regulatory compliant services with Prime Trust.”
Prime Trust’s earlier tweet on March 27 had explicitly noted OK Group’s reported plans to launch a compliant stablecoin, saying:
“Prime Trust and OK Group signed a strategic investment agreement this month. OK Group is our lead strategic investor and plans to launch a compliant stablecoin #OKUSD, which will operate #OKChain in the future @starokcoin”
According to Cointelegraph, Prime Trust is a blockchain-focused trust company that is a qualified crypto and fiat currency custodian and chartered, regulated financial institution, providing compliance services that include AML/KYC checks, funds processing, as well as asset protection for initial coin offerings.
From the name it appears the compliant stable coin will be a USD-pegged asset. As per Prime Trust’s tweet, it will run on the OKChain blockchain — OKEx’s blockchain that is currently in its final development stage, as the exchange had announced earlier this week.