Standard Chartered Bank (Hong Kong) Limited (SCBHK), Animoca Brands, and HKT have signed agreements to establish a joint venture (JV) aimed at issuing a Hong Kong dollar-backed stablecoin, pending regulatory approval. The companies plan to apply for a license under the Hong Kong Monetary Authority’s (HKMA) new stablecoin regulatory framework.
The proposed stablecoin would be among the first issued under the HKMA’s regime, positioning Hong Kong as a key player in the digital asset sector. The initiative seeks to enhance payment efficiency, expand financial inclusion, and integrate Web3 technology with traditional banking.
Banking, Web3, and Telecom Leaders Join Forces
SCBHK brings banking infrastructure and regulatory expertise to the project, leveraging its experience with stablecoin issuers and its participation in HKMA’s tokenized money initiatives. The bank said the venture aligns with its broader efforts in digital finance, including central bank digital currencies (CBDCs) and tokenized deposits.
Animoca Brands, a Web3-focused company headquartered in Hong Kong, will contribute its knowledge of blockchain applications and crypto-native markets. The company has been active in Web3 development and sees stablecoins as a key component of future financial systems.
HKT, a technology and telecom company, will use its expertise in mobile payments to explore real-world applications for the stablecoin, particularly in retail and cross-border transactions. The company stated that the initiative could enhance security and transparency in digital payments.
Stablecoin Regulation and Hong Kong’s Digital Future
The JV participants have been working within HKMA’s stablecoin issuer sandbox, launched in July 2024, to test potential use cases. Hong Kong has been positioning itself as a global digital asset hub, with regulators focusing on creating a secure and transparent framework for stablecoins.
SCBHK CEO Mary Huen said, “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.”
Animoca Brands Group President Evan Auyang noted that “As the leading Web3 ecosystem player in Hong Kong, Animoca Brands is absolutely thrilled to collaborate with SCBHK and HKT on this joint venture. Stablecoins are one of the best proven and most widely recognized use cases for Web3, and we are still in the early stages for mass adoption of stablecoins across retail, enterprises, and institutions.”
