Standard Chartered’s Hong Kong arm (SCBHK), in collaboration with Animoca Brands and telecom firm HKT, A joint venture will launch a stablecoin backed by the Hong Kong dollar.
A statement dated Feb. 17, stated that the Hong Kong Monetary Authority’s (HKMA) regulatory approval is still pending.
Since July 2024, SCBHK, Animoca Brands, and HKT have actively participated in HKMA’s stablecoin issuer sandbox. Joint ventures will launch fiat-backed, compliant stablecoins in Hong Kong.
Mary Huen, CEO of Standard Chartered Hong Kong and Greater China & North Asia, expressed confidence in launching one of the first Hong Kong dollar-backed stablecoins.
She emphasized the joint venture’s commitment to fintech innovation to provide a secure and widely usable digital currency for institutions and individuals alike.
Three-pronged approach
SCBHK’s extensive experience with stablecoin issuers worldwide ensures the joint venture will benefit from its robust governance and bank-grade infrastructure.
The bank has actively participated in HKMA’s tokenized money projects, positioning itself as a key player in Hong Kong’s evolving digital asset ecosystem.
Animoca Brands, meanwhile, will use its extensive industry network to promote stablecoins in markets that are crypto-native. The company plans to explore various use cases across the Web3 space, supporting the stablecoin’s long-term growth and integration into digital commerce.
HKT is in the mobile wallets sector and will be enhancing the use of stablecoins with applications to facilitate domestic and trans-border payment.
Evan Auyang of Animoca Brands Group said that stablecoins were one of the best-established and most promising Web3 applications. He stressed that the partnership with SCBHK and HKT reaffirms Hong Kong’s potential to lead the digital asset industry in a safe and regulated environment.
According to Chainalysis’ latest “Geography of Crypto Report,” Hong Kong’s year-over-year growth in crypto adoption was 85.6%, the largest in Eastern Asia.
The report said the region’s supportive regulatory framework was the main driver for this growth, especially regarding institutional adoption.
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