Standard Chartered, Animoca Brands, and HKT to Launch HKD-Backed Stablecoin
Felix Pinkston Feb 17, 2025 06:00
Standard Chartered, Animoca Brands, and HKT are forming a joint venture to issue a stablecoin backed by the Hong Kong dollar, pending regulatory approval.
In a significant move for the digital asset ecosystem, Standard Chartered Bank (Hong Kong) Limited (SCBHK), Animoca Brands, and HKT have announced the formation of a joint venture aimed at launching a Hong Kong dollar-backed stablecoin. This initiative is set to advance Hong Kong's position as a leader in the digital assets space, according to Animoca Brands.
Strategic Collaboration
The joint venture is poised to apply for a license from the Hong Kong Monetary Authority (HKMA) under the new regulatory framework, which is a crucial step in the issuance of the stablecoin. Standard Chartered, with its extensive experience in working with stablecoin issuers worldwide, will provide the necessary bank-grade infrastructure and governance to support this venture.
Animoca Brands, a prominent player in the Web3 space, will contribute its expertise and network to explore innovative crypto-native opportunities. Their focus will be on leveraging the potential of the Web3 ecosystem to drive growth for the joint venture.
HKT, known for its technological prowess in media and telecommunications, will bring its mobile wallet expertise to develop new stablecoin use cases. The aim is to enhance both domestic and cross-border payments, providing significant benefits to consumers and merchants.
Industry Impact and Future Prospects
Bill Winters, Group Chief Executive of Standard Chartered, emphasized the importance of digital assets, stating that stablecoins are integral to the growth of the digital asset industry. He highlighted that Standard Chartered's global reach and robust infrastructure position them well to contribute significantly to this burgeoning market.
Mary Huen, CEO of Standard Chartered Hong Kong, expressed enthusiasm about being among the first to issue an HKD-backed stablecoin. She believes this initiative will introduce a novel medium of exchange in Hong Kong, further consolidating the city's role as a financial hub.
Animoca Brands' Group President, Evan Auyang, underscored the potential for stablecoins as a leading use case in Web3, noting the early stages of mass adoption across various sectors.
HKT's Group Managing Director, Susanna Hui, highlighted the potential of the stablecoin to improve payment efficiency and security, ultimately benefiting the retail sector.
Regulatory Environment and Market Position
The joint venture has been actively participating in the HKMA's stablecoin issuer sandbox since July 2024. This initiative seeks to bridge the gap between Web3 and traditional finance, strengthening Hong Kong's position as a global hub for digital assets.
The success of this venture is contingent upon the passage of the Stablecoins Bill, which would provide the necessary legal framework for stablecoin issuance in Hong Kong.
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