In a groundbreaking move, Standard Chartered Bank Hong Kong, Animoca Brands, and HKT have announced the formation of a joint venture to issue Hong Kong's first regulated HKD-backed stablecoin. This initiative marks a significant step in Hong Kong's ambition to cement its place as Asia's crypto hub, and as a global leader in regulated crypto assets.
The joint venture will apply for a license from the Hong Kong Monetary Authority (HKMA) under its new regulatory framework for stablecoin issuers. A bill issued in December is currently under review by the Legislative Council. This collaboration brings together three key players from Hong Kong's banking, Web3, and telecommunications sectors, each contributing their unique expertise to the project.
Standard Chartered, with its experience in stablecoin projects worldwide, will provide bank-grade global infrastructure and rigorous governance standards to secure compliance with regulatory obligations.
Animoca Brands, a global leader in the Web3 space, will leverage its industry expertise and extensive network to integrate the stablecoin into the broader digital economy. This includes adoption across metaverse applications, gaming, and decentralized finance (i.e. DeFi), thereby enabling innovative use cases and driving long-term growth.
HKT, a pioneer in technology, media, and telecommunications, will contribute its mobile wallet expertise to enhance real-world payment adoption. This will facilitate both domestic and cross-border transactions, providing greater benefits to consumers and merchants alike.
Bill Winters, Group Chief Executive of Standard Chartered, emphasized the importance of digital assets in the evolving financial landscape,
Digital assets are here to stay, and the development of different forms of tokenized money is integral to the advancement of this industry. We are introducing solutions and instruments that service this market and meet the growing client demand
The joint venture's licensing application with the HKMA is expected to progress in the coming months. Alongside the city's progress in regulated tokenisation, crypto asset trading, and digital bond issuance, the latest announcement represents broad institutional support for Hong Kong's ambitions as a global crypto asset leader.
Written by J Huang and S Pettigrove
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