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Standard Chartered has joined forces with Animoca Brands and HKT to establish a joint venture focused on issuing a Hong Kong dollar-backed stablecoin. This initiative aims to enhance the city’s digital asset ecosystem by leveraging Standard Chartered’s extensive experience with stablecoin issuers and its bank-grade infrastructure and governance.
As a key participant in all of the Hong Kong Monetary Authority’s (HKMA) tokenized money projects in recent years, Standard Chartered Bank Hong Kong (SCBHK) will play an anchor role in the joint venture. The partnership will explore innovative applications for stablecoins in financial markets and payments, bridging the gap between Web3 and traditional finance.
Animoca Brands will focus on developing Web3 use cases for the stablecoin across Hong Kong’s growing digital economy, while HKT, a leading multimedia and telecom provider, plans to integrate the stablecoin into its mobile wallet platform.
The three partners have been actively participating in the HKMA’s stablecoin issuer sandbox, launched in July 2024. This regulatory initiative is designed to assess the role of stablecoins in financial transactions and their potential to streamline payments and digital asset adoption.
Looking ahead, the joint venture partners intend to apply for a regulatory license from the HKMA to officially issue the stablecoin.
Bill Winters, Group Chief Executive of Standard Chartered, emphasized the significance of this development, stating:
“Digital assets are here to stay, and the evolution of tokenized money is crucial to advancing the industry. Stablecoins, as public chain instruments with established use cases, play a vital role in the digital asset ecosystem. With our bank-grade infrastructure, governance, and global reach, Standard Chartered is well-positioned to contribute meaningfully to the development of this ecosystem in Hong Kong and beyond.”
The move aligns with Hong Kong’s broader efforts to position itself as a global hub for digital assets and blockchain innovation, reinforcing the city’s commitment to fostering a regulated and secure stablecoin market.
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