On 17 February 2025, Standard Chartered Bank (Hong Kong) Limited (SCBHK), Animoca Brands, and HKT announced their partnership to form an HKD stablecoin joint venture.

The collaboration aims to apply for a license under Hong Kong’s new regulatory framework, still subject to the passage of the Stablecoins Bill introduced by the Hong Kong Monetary Authority (HKMA), to issue a stablecoin backed by the Hong Kong dollar.

Standard Chartered has a history of collaborating with stablecoin issuers worldwide, enabling the JV to leverage its secure banking infrastructure and governance.

As an active participant in the HKMA’s tokenised money projects in recent years, SCBHK aims to play a key role in supporting the growth of Hong Kong’s digital asset ecosystem through its involvement in the JV.

Next, Animoca Brands, a global company specialising in Web3 and based in Hong Kong, will bring its industry expertise and network to the joint venture.

By capitalising on crypto-native opportunities, the company aims to drive innovation and explore innovative use cases within the Web3 ecosystem, ensuring sustainable growth and long-term success for the partnership.

Finally, HKT, a provider of technology, media, and telecommunications services, will harness its mobile wallet expertise to drive the joint venture’s development of innovative stablecoin applications.

The goal is to revolutionise domestic and cross-border payments, delivering enhanced benefits to both consumers and merchants.

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. 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.”

Evan Auyang, Group President, Animoca Brands, said:

“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.”

SCBHK, Animoca Brands, and HKT have been collaborating within the HKMA stablecoin issuer sandbox, launched in July 2024, to explore the transformative potential of stablecoins.

By bridging Web3 and traditional finance, this HKD stablecoin joint venture aims to enhance financial markets and payment systems, further solidifying Hong Kong’s status as a leading global hub for digital assets. Strategically positioned, the joint venture is set to become one of the first in this emerging market within the region.

Source of image: Edited from Freepik