KEY TAKEAWAYS
- Standard Chartered, Animoca Brands, and HKT form a joint venture to issue a Hong Kong dollar-backed stablecoin.
- The initiative aims to secure a license from the Hong Kong Monetary Authority under the new regulatory framework.
- Animoca Brands will explore innovative Web3 use cases for the stablecoin, enhancing its utility in the digital asset ecosystem.
- HKT will leverage its mobile wallet expertise to develop stablecoin use cases for improved domestic and cross-border payments.
On February 17, 2025, Standard Chartered Bank (Hong Kong) Limited (SCBHK), Animoca Brands, and HKT announced the formation of a joint venture aimed at issuing a Hong Kong dollar-backed stablecoin. The initiative seeks to obtain a license from the Hong Kong Monetary Authority (HKMA) under the new regulatory framework.
Standard Chartered, with its extensive experience in collaborating with stablecoin issuers globally, will provide the joint venture with robust bank-grade infrastructure and governance. The bank has been actively involved in HKMA’s tokenized money projects, positioning itself as a key contributor to Hong Kong’s digital asset ecosystem.
Animoca Brands, a leader in the Web3 space, will leverage its expertise and network to explore innovative use cases for the stablecoin within the Web3 ecosystem. This collaboration aims to tap into crypto-native opportunities and foster long-term growth.
HKT, known for its technology and telecommunication services, will utilize its mobile wallet expertise to develop stablecoin use cases that enhance domestic and cross-border payments. The goal is to provide greater benefits to consumers and merchants alike.
Strategic Positioning in Hong Kong’s Digital Asset Market
Bill Winters, Group Chief Executive of Standard Chartered, emphasized the importance of digital assets and tokenized money in advancing the industry. He noted that stablecoins are crucial to the digital asset ecosystem, and Standard Chartered’s infrastructure and global reach position it well to contribute to the ecosystem’s development in Hong Kong and beyond.
Mary Huen, CEO of Standard Chartered Hong Kong and Greater China & North Asia, highlighted the bank’s participation in the HKMA’s stablecoin issuer sandbox. She expressed anticipation for launching an HKD-backed stablecoin with strategic partners, aiming to introduce a secure medium of exchange across various use cases.
Evan Auyang, Group President of Animoca Brands, expressed enthusiasm for collaborating with SCBHK and HKT. He noted that stablecoins are a proven use case for Web3, and the joint venture’s efforts align with Hong Kong’s potential as a global Web3 hub.
Susanna Hui, Group Managing Director of HKT, stated that the issuance of an HKD-linked stablecoin would enhance payment efficiency and security, benefiting the retail sector. She emphasized HKT’s commitment to supporting Hong Kong’s businesses and reinforcing its status as an innovation hub.
The joint venture has been participating in the HKMA stablecoin issuer sandbox since July 2024. This initiative explores how stablecoins can bridge Web3 and traditional finance, strengthening Hong Kong’s position as a global digital assets hub.
For more details, visit the announcement here.
Why This Matters: Impact, Industry Trends & Expert Insights
Standard Chartered, Animoca Brands, and HKT have announced a joint venture to launch an HKD-backed stablecoin, aiming to secure a license from the Hong Kong Monetary Authority under the new regulatory framework.
Recent developments in Hong Kong’s stablecoin regulations include the introduction of the Stablecoins Bill in December 2024. This bill proposes a comprehensive regulatory framework for stablecoin issuance and trading in Hong Kong. Key components include licensing requirements for stablecoin issuers, restrictions on offering and marketing stablecoins, and enhanced consumer protection measures. Issuers must obtain a license from the Hong Kong Monetary Authority (HKMA) and meet stringent reserve asset requirements. The bill also outlines transitional arrangements for existing stablecoin entities, allowing them to continue operations temporarily while applying for a license. The legislation aims to solidify Hong Kong’s position as a leading crypto hub in the Asia-Pacific region. This aligns with the joint venture’s goal of establishing a stablecoin in compliance with the new regulations. KWM
As per insights from KWM, Hong Kong is actively developing a regulatory framework for fiat-referenced stablecoins, including those backed by the Hong Kong Dollar (HKD). The proposed regime involves a licensing requirement for issuers, ensuring that stablecoins are fully backed by reserve assets at all times. This approach aims to address financial stability and investor protection concerns while promoting the development of the virtual asset market. This supports the joint venture’s plan to issue an HKD-backed stablecoin, ensuring compliance with regulatory standards and enhancing the digital asset ecosystem.
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