Standard Chartered, Animoca Brands, and HKT Form JV for HKD-Backed Stablecoin

In order to issue a stablecoin backed by the Hong Kong dollar, Standard Chartered Bank (Hong Kong) Limited (SCBHK), Animoca Brands, and HKT have formed a joint venture (JV). The businesses intend to submit an application for a license under the Hong Kong Monetary Authority’s (HKMA) changing regulatory environment.

Having taken an active position in all of HKMA’s tokenized money initiatives, SCBHK contributes its knowledge in banking governance and infrastructure. Its participation in the JV enhances the growing ecosystem of digital assets in Hong Kong.

In the meantime, Hong Kong-based Web3 leader Animoca Brands will offer its extensive network and industry understanding. By incorporating stablecoins into Web3 platforms and crypto-native applications, the business hopes to promote acceptance.

HKT, a pioneer in telecommunications and financial technology, will leverage its mobile wallet capabilities to enhance domestic and cross-border transactions. The firm seeks to improve the efficiency of digital payments while offering merchants and consumers new financial tools.

Industry Leaders on the Future of Digital Assets

Bill Winters, Group Chief Executive at Standard Chartered, emphasized the significance of stablecoins in the digital economy. “Digital assets are here to stay, and the development of different forms of tokenized money is integral to the advancement of this industry,” he stated. He also highlighted Standard Chartered’s involvement in Central Bank Digital Currencies, tokenized deposits, and stablecoin initiatives.

Mary Huen, CEO of Standard Chartered Hong Kong, expressed the bank’s ambition to be among the first issuers of an HKD-backed stablecoin. “By leveraging the bank’s and our partners’ core strengths, we aim to launch a stablecoin that can be used securely by institutions and individuals across a wide number of use cases,” she said.

Evan Auyang, Group President of Animoca Brands, reinforced Hong Kong’s potential as a global Web3 hub. “Stablecoins are one of the best proven and most widely recognized use cases for Web3, and we are still in the early stages of mass adoption,” he noted.

Susanna Hui, Group Managing Director of HKT, emphasized the benefits for merchants and consumers. “Issuing an HKD-linked stablecoin will enhance payment efficiency, streamline transactions, and provide greater security and transparency through advanced Web3 innovations,” she explained.

Since July 2024, SCBHK, Animoca Brands, and HKT have actively participated in the HKMA’s stablecoin issuer sandbox. Their efforts focus on bridging traditional finance with Web3 technologies, reinforcing Hong Kong’s role as a global leader in digital assets.

With this joint initiative, the three companies are positioning themselves as key players in Hong Kong’s regulated stablecoin market, aiming to enhance financial accessibility and innovation in the region.