Hong Kong’s Stablecoin Race: Standard Chartered Takes a Lead

• Standard Chartered, Animoca, and HKT are teaming up to launch a stablecoin backed by HKD.  
• They will apply for a license under Hong Kong’s new rules to issue regulated stablecoins.  
• The stablecoin aims to improve trade by combining banking security with digital technology.

Standard Chartered Bank (Hong Kong) Limited (SCBHK), Animoca Brands, and Hong Kong Telecommunications (HKT) have signed agreements to form a joint venture focused on issuing a Hong Kong dollar (HKD)-backed stablecoin. The JV will apply for a license under Hong Kong’s evolving compliance framework, aligning with the city’s push to become a global hub for digital assets. The initiative integrates traditional financial expertise with blockchain innovation to enhance domestic and cross-border payment solutions.  

Leveraging Bank-Grade Infrastructure and Web3 Innovations  

The JV will expand Standard Chartered’s infrastructure and governance while benefiting from Animoca Brands’ expertise in blockchain-based financial solutions. HKT, a leading Hong Kong service provider, aims to integrate stablecoin into its mobile wallet offerings, ensuring streamlined settlements with improved security and transparency.  

The bank has been actively engaged in stablecoin initiatives worldwide and has participated in every money initiative led by the Hong Kong Monetary Authority. Bill Winters, CEO of Standard Chartered, highlighted the essential nature of digital assets, stating, “Stablecoins are critical in the overall digital asset ecosystem. Standard Chartered’s bank-grade infrastructure, governance, and global reach mean that we are in a good position to contribute materially to developing the systems being built in Hong Kong and globally.”  

Since July 2024, Standard Chartered, Animoca Brands, and HKT have participated in Hong Kong’s stablecoin issuer sandbox alongside JINGDONG Coinlink Technology and RD InnoTech. This participation has provided insights into stablecoins’ potential to transform payment systems by bridging Web3 advancements with traditional finance.  

A Step Toward Regulatory Compliance and Market Expansion  

This move follows Hong Kong’s institutional developments surrounding currency regulation. The proposed bill, introduced to the Legislative Council on December 6, 2024, passed its initial reading on December 18, 2024. Once enacted, issuers must secure an HKMA license and comply with reserve and price stability requirements.  

Related: Tether Pushes USDT to BTC as TRON Leads Stablecoin Transfers

The JV partners intend to be among the first issuers of an HKD-backed stablecoin under this new government framework. With Standard Chartered’s institutional backing, Animoca Brands’ blockchain expertise, and HKT’s telecommunications network, the initiative is positioned to redefine digital transactions in Hong Kong. The project aligns with the city’s ambition to lead in digital finance by integrating traditional financial structures with cutting-edge digital solutions.  

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