Stablecoins have a huge impact on the financial market as we know it, but more can still be done. Looking to take stablecoin usage to the next level in Hong Kong, Standard Chartered Bank (Hong Kong) Limited (SCBHK), Animoca Brands, and HKT have announced a joint venture (JV) to issue a Hong Kong dollar-backed stablecoin.
The process won’t be as simple as just launching a stablecoin though. The firms will need to apply for a licence from the Hong Kong Monetary Authority (HKMA) in the new regulatory regime. The JV has the potential to accelerate stablecoins in the region as, individually, SCBHK, Animoca Brands, and HKT are all innovators in the payments and web3 space. By combining their efforts, there could be a huge uptake in stablecoin usage.
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 strategically positioned to be among one of the first issuers to pioneer this market in the region.
Mary Huen, chief executive officer, Hong Kong and Greater China and North Asia, Standard Chartered, said: “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.”
Standard Chartered
Standard Chartered has a track record of working with stablecoin issuers globally, allowing the JV to fully utilise its bank-grade infrastructure and rigorous governance. Having participated in all of the HKMA’s tokenised money projects over the past few years, SCBHK is excited to contribute to the growing digital asset ecosystem in Hong Kong.
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. As public chain instruments with proven use cases, stablecoins play a critical role 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 materially contribute to the development of the ecosystem being built in Hong Kong and globally.”
Animoca Brands
Animoca Brands, a global Web3 leader 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. It will also explore innovative use cases across the Web3 ecosystem conducive to the JV’s long-term growth.
Evan Auyang, group president, Animoca Brands, said: “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. This opportunity to become one of the first to issue a fiat-backed stablecoin under the HKMA’s licensing regime reinforces our conviction that Hong Kong has a bright future as a global Web3 hub, leading the charge to grow the industry in a safe and compliant manner.”
HKT
HKT, a technology, media, and telecommunication pioneer, will leverage its mobile wallet expertise to enable the JV to develop innovative stablecoin use cases, aiming to enhance both domestic and cross-border payments and provide greater benefits to consumers and merchants alike.
Susanna Hui, group managing director, HKT, said: “HKT is dedicated to leveraging technology to support our dynamic consumer and merchant ecosystem, aiding merchants in navigating the constantly evolving retail landscape. 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.”
