Standard Chartered, Animoca Brands, and HKT have partnered to launch a Hong Kong dollar-backed stablecoin.
Standard Chartered, Animoca Brands, and HKT have partnered to launch a Hong Kong dollar-backed stablecoin. The joint venture aims to apply for a license from the Hong Kong Monetary Authority (HKMA) under the city’s upcoming stablecoin regulatory framework. The collaboration will combine Standard Chartered's banking infrastructure, Animoca’s blockchain expertise, and HKT’s mobile payment technology to develop use cases for the stablecoin in payments, finance, and cross-border transactions.
The three companies were included in the HKMA’s stablecoin issuer sandbox in March 2024, an initiative that allows participants to explore how stablecoins can integrate traditional finance with the growing digital economy. The sandbox has allowed the trio to test various applications for stablecoins and is a part of Hong Kong’s broader efforts to regulate digital assets. Other firms involved in the sandbox include Jingdong Coinlink and RD InnoTech, both of which are also working on Hong Kong dollar-pegged stablecoins.
In December 2024, the Hong Kong government introduced the Stablecoins Bill, which aims to regulate stablecoin issuers. The bill requires issuers to obtain a license from the HKMA and adhere to specific requirements related to reserve and price stability. The bill was discussed in the Legislative Council in December 2024 and is expected to establish a framework for regulated stablecoin issuers in the region.
Mary Huen, CEO of Standard Chartered Hong Kong and Greater China, expressed the company’s anticipation of becoming one of the first issuers of an HKD-backed stablecoin under the new regulatory regime. Huen emphasized that the stablecoin would be a secure medium of exchange for both institutions and individuals across various use cases.
Hong Kong has long positioned itself as a digital asset hub, competing with cities like Singapore. The city's regulatory actions, including the approval of Bitcoin and Ether exchange-traded funds and strict licensing requirements for crypto exchanges, have shown its commitment to becoming a global leader in digital finance. Hong Kong’s regulatory measures are designed to balance innovation with financial stability, and the stablecoin initiative is an integral part of this strategy.
The stablecoin launch, if successful, would mark a significant step in Hong Kong’s efforts to integrate traditional finance with the digital economy. As the city continues strengthening its position as a digital asset center, this project will help establish a new era for digital payments and financial services in the region. The stablecoin initiative highlights Hong Kong's role in shaping the future of digital assets, both in terms of regulatory leadership and innovative financial solutions.
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