Standard Chartered Bank (Hong Kong), Animoca Brands and HKT are engaging in a joint venture with the ambition to issue a Hong Kong dollar-backed stablecoin.
Together, the partners have agreed to apply for a license from the Hong Kong Monetary Authority under the new regulatory regime.
Bill Winters, group chief executive at Standard Chartered, said that keeping up with the development of digital assets is integral to market progression.
“Digital assets are here to stay and the development of different forms of tokenised money is integral to the advancement of this industry,” Winters. “That is why we are actively involved in various Central Bank Digital Currencies, tokenised deposits and, of course, stablecoins projects.”
Winters said the bank was 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,” said Winters. “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.”
To tap into crypto-native opportunities, Animoca Brands is leveraging its expertise, exploring the Web3 ecosystem to ensure the joint-venture’s long-term success.
Moreover, HKT, a technology, media, and telecommunication company, aims to enhance both domestic and cross-border payment through its contribution.
“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,” said Evan Auyang, group president at Animoca Brands.
“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.”
