Standard Chartered Bank (LON: STAN), Animoca Brands, and HKT have entered into agreements to establish a joint venture with the intention to apply for a license from the Hong Kong Monetary Authority (HKMA) in the new regulatory regime in order to issue “a Hong Kong dollar-backed stablecoin.”
Standard Chartered reportedly has a track record of working with stablecoin issuers globally, allowing the JV to “fully utilize its bank-grade infrastructure and rigorous governance.”
Having participated in HKMA’s tokenized money projects over the past few years, SCBHK is pleaed to “contribute to the digital asset ecosystem in Hong Kong by being a key anchor to the JV.”
Animoca Brands, a global Web3 firm headquartered in Hong Kong, will leverage its industry expertise and network in the Web3 space to enable the JV to tap into “crypto-native opportunities, and will explore innovative use cases across the Web3 ecosystem conducive to the JV’s long-term growth.”
Bill Winters, Group Chief Executive, Standard Chartered, said:
“Digital assets are here to stay and the development of different forms of tokenised money is integral to the advancement of this industry. That is why we are actively involved in various Central Bank Digital Currencies, tokenised deposits and, of course, stablecoins projects. We are introducing solutions and instruments that service this market and meet the growing client demand.”
Mary Huen, Chief Executive Officer, Hong Kong and Greater China & North Asia, Standard Chartered, added:
“As a participant of the HKMA’s stablecoin issuer sandbox, Standard Chartered looks forward to becoming one of the first issuers launching an HKD-backed stablecoin together with our strategic partners, bringing an innovative medium of exchange to Hong Kong and charting a new chapter for Hong Kong’s digital asset market. 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.”
Evan Auyang, Group President, Animoca Brands, said:
“As the leading Web3 ecosystem player headquartered in Hong Kong, Animoca Brands is absolutely thrilled to collaborate with SCBHK and HKT on this joint venture. Stablecoins are one of the best proven and most widely recognised use cases for Web3, and we are still in the early stages for mass adoption of stablecoins across retail, enterprises and institutions.”
Susanna Hui, Group Managing Director, HKT, said:
“We believe that issuing an HKD-linked stablecoin will enhance payment efficiency, streamline transactions, and provide greater security and transparency through advanced Web3 innovations, ultimately benefiting the broader retail sector.”
SCBHK, Animoca Brands and HKT have been jointly “participating in the HKMA stablecoin issuer sandbox launched in July 2024, to explore how stablecoins can play a key role in the development of financial markets and payments by bridging Web3 and traditional finance, thus strengthening Hong Kong’s position as a global digital assets hub.”
The JV is aid to be positioned to be among “one of the first issuers to pioneer this market in the region.”