Standard Chartered plans to launch HKD-backed stablecoin with Animoca Brands and HKT

Standard Chartered's Hong Kong unit, web3 investor Animoca Brands and telecom company Hong Kong Telecommunications (HKT) have teamed up to form a joint venture to issue a stablecoin pegged to the Hong Kong dollar.The joint venture plans to apply for a license from the Hong Kong Monetary Authority (HKMA) under the city's upcoming stablecoin regulatory regime, aiming to be among the first regulated stablecoin issuers, according to an announcement Monday.The planned stablecoin will draw on Standard Chartered's banking infrastructure, Animoca's crypto expertise and HKT's mobile wallet technology. The companies aim to develop use cases in payments, finance and cross-border transactions.Hong Kong's planned stablecoin regulatory frameworkHong Kong is moving toward a regulated stablecoin framework as part of its broader digital asset strategy. In December 2024, the government published the Stablecoins Bill, which would establish a licensing and regulatory regime for fiat-backed stablecoin issuers. Last month, Hong Kong's Legislative Council held its first discussion on the bill, noting that stablecoin issuers will need to obtain an HKMA license.Standard Chartered Bank (Hong Kong), Animoca Brands and HKT have already been involved in shaping the regulatory framework. In March 2024, the HKMA included them in its stablecoin issuer sandbox, allowing them to explore how stablecoins could bridge web3 and traditional finance and contribute to Hong Kong's position as a global digital assets hub."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," said Mary Huen, CEO of Standard Chartered Hong Kong and Greater China and North Asia."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," Huen added.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.