Standard Chartered Bank, HKT, and Animoca Brands are establishing a joint venture to issue a Hong Kong dollar-backed stablecoin.
According to a press release today, this initiative follows the new regulatory framework set by the Hong Kong Monetary Authority (HKMA). The partnership aims to obtain a license under this system to introduce compliance-based stability into the financial system.
Bank-grade infrastructure and expertise in stablecoins
Standard Chartered Bank has a history of collaborating with stablecoin issuers. The bank’s involvement enables the joint venture to leverage its established infrastructure and governance framework.
Additionally, SCBHK has participated in all HKMA-led tokenized currency projects in recent years, strengthening its position in the digital asset space in Hong Kong.
The bank’s role in the joint venture aligns with its broader strategy to support tokenized financial instruments, including stablecoins and central bank digital currencies. SCBHK intends to contribute its expertise in governance, compliance, and risk management to the joint venture.
Notably, the new stablecoin initiative is expected to play a role in integrating digital assets with traditional finance. Standard Chartered has joined the HKMA’s stablecoin issuer sandbox, positioning itself as an early participant in Hong Kong’s regulated stablecoin market.
The joint venture plans to introduce a stablecoin designed for use across multiple applications, ensuring safety and reliability for both institutions and individuals.
Digital payment use cases
Animoca Brands, headquartered in Hong Kong, will provide its expertise within the Web3 ecosystem. The company’s participation will enable the joint venture to explore innovative stablecoin applications in blockchain-based transactions.
Animoca Brands emphasizes the increasing role of stablecoins in Web3 and aims to leverage its network to drive adoption. The joint venture will develop new use cases for stablecoins in both the retail and corporate sectors.
Meanwhile, HKT, a leader in telecommunications and digital payments, will contribute its mobile wallet infrastructure.
The company aims to incorporate stablecoins into domestic and cross-border transactions, thereby enhancing the efficiency of digital payments. HKT plans to utilize advanced Web3 technologies to support merchant transactions while ensuring the security of digital payments.
