Webuy Global explores stablecoin payment initiatives with Victory Securities

SINGAPORE - Webuy Global Ltd. (NASDAQ:WBUY), a Southeast Asian e-commerce and travel tech company with annual revenues of $58.3 million, announced Wednesday it plans to explore further collaboration on stablecoin payment initiatives with Victory Securities Company Limited (8540.HK). According to InvestingPro analysis, the company maintains a healthy balance sheet with more cash than debt, positioning it well for new initiatives.

The companies will jointly investigate integrating stablecoin-based payment infrastructure to enable cross-border transactions for global travelers and suppliers, according to a press release statement. The initiative would potentially position Webuy as one of the first Nasdaq-listed Southeast Asian e-commerce platforms to support stablecoin payments, initially focusing on USDC and USDT. With a current ratio of 1.32, InvestingPro data shows Webuy’s liquid assets adequately cover its short-term obligations, though the company faces challenges with rapid cash burn.

This exploration builds upon a previously signed memorandum of understanding between the companies.

Victory Securities, established in 1971, is regulated by Hong Kong’s Securities and Futures Commission and claims to be the first licensed firm in Hong Kong authorized to provide virtual asset dealing and advisory services to retail investors.

"Stablecoins open a new chapter for our business model," said Xue Bin, CEO and Co-Founder of Webuy Global Ltd., in the statement.

Kennix Chan, Executive Director of Victory Securities, noted the company sees "strong alignment in advancing Webuy’s capital structure while enabling safe and compliant adoption of stablecoin payment solutions."

The companies indicated they may explore additional opportunities in the virtual asset space, though specific timelines for implementation were not disclosed in the announcement. While analysts expect sales growth this year, InvestingPro reveals 16 additional key insights about Webuy’s financial health and market position that could be crucial for investors following this development.

In other recent news, Webuy Global Ltd. has integrated Coinbase Commerce into its platform, enabling customers to pay for travel packages and products using cryptocurrencies, including USDC. This development allows travelers from the U.S., Europe, and other regions to use digital assets when purchasing tour packages to China, Southeast Asia getaways, and local experiences. Additionally, Webuy Global has entered into a Memorandum of Understanding with CTG MICE Service Company Limited to develop inbound tourism services to China. The partnership aims to bring at least 20,000 travelers to China annually by improving infrastructure, designing travel routes, and offering VIP services. CTG MICE is a subsidiary of China Tourism Group Travel Services Co. Ltd., part of China’s largest state-owned tourism enterprise. These recent developments highlight Webuy Global’s strategic moves to enhance its offerings and expand its market reach.

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