Standard Chartered, Animoca Brands, and HKT to Launch Hong Kong Dollar-Backed Stablecoin

In a significant move for Hong Kong’s digital asset landscape, Standard Chartered Bank Hong Kong, Animoca Brands, and Hong Kong Telecommunications (HKT) have announced a partnership to launch a Hong Kong dollar-backed stablecoin. The initiative comes under a new joint venture that aims to tap into the growing demand for stable digital assets in the region.
A Strategic Partnership for Digital Payments
The trio of companies will apply for a license from the Hong Kong Monetary Authority (HKMA), the city’s de facto central bank, to issue and manage the new stablecoin. This collaboration is noteworthy not only because of the companies involved but also because of Hong Kong's unique monetary system.
Unlike traditional central banks, the HKMA does not issue currency directly. Instead, it oversees the issuance of Hong Kong dollars by major financial institutions such as HSBC, Bank of China (Hong Kong), and Standard Chartered. The latter’s involvement in the project is especially significant, as the bank has previously collaborated with stablecoin issuers and participated in the HKMA’s initiatives related to tokenized money.
In addition to Standard Chartered's financial expertise, Animoca Brands, a leading player in the blockchain space, brings its deep understanding of digital assets and gaming, while HKT contributes its specialization in mobile payment systems. Together, the joint venture will focus on leveraging the stablecoin for both domestic and cross-border payments, with the potential to explore further applications in the digital asset ecosystem.
Navigating Hong Kong's Stablecoin Bill and Licensing Requirements
The stablecoin initiative is aligned with Hong Kong's evolving regulatory framework for digital assets. The Hong Kong government has introduced a stablecoin bill that is currently under review. The bill, which was first presented to the Legislative Council on December 6, 2024, is designed to create a comprehensive licensing regime for stablecoin issuers.
Under the proposed legislation, stablecoin issuers would be required to obtain a license from the HKMA and adhere to strict reserve and price stability requirements to ensure the stability and reliability of the assets. The bill has already completed its first reading in the Legislative Council, and further readings are expected in the coming months.
Hong Kong’s Push to Become a Digital Asset Hub
Hong Kong has emerged as a global hub for digital assets, positioning itself as a strong competitor to regional rival Singapore. The city has made significant strides in creating a regulatory environment that fosters innovation while maintaining financial stability. As part of this strategy, Hong Kong has approved exchange-traded funds (ETFs) for Bitcoin (BTC) and Ether (ETH), signaling its commitment to integrating digital currencies into the mainstream financial ecosystem.
Moreover, the Hong Kong government has implemented a strict licensing regime for cryptocurrency exchanges, with nine platforms having already secured licenses from the Securities and Futures Commission (SFC). Notably, HashKey, which obtained its license in November 2022, was one of only two licensed exchanges in Hong Kong until late 2024.
The introduction of the stablecoin bill and the licensing of stablecoin issuers are key components of Hong Kong's broader efforts to position itself as a leader in the digital asset space.
A Promising Future for Hong Kong's Digital Asset Ecosystem
As Hong Kong continues to strengthen its regulatory framework and attract global players in the blockchain and digital asset industries. The launch of a Hong Kong dollar-backed stablecoin by Standard Chartered, Animoca Brands, and HKT represents a significant milestone. The venture will not only help enhance the city’s standing as a digital finance hub but also pave the way for greater adoption of blockchain-based financial solutions.
With the backing of some of the region's most influential players, the Hong Kong dollar-backed stablecoin could become a vital tool for domestic and international transactions, further expanding the use cases for stablecoins and blockchain technology across various industries. As Hong Kong's regulatory landscape continues to evolve, it will likely see even more innovations in digital assets, solidifying its position as a leading global financial center.
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