TLDR
- Standard Chartered Bank Hong Kong, Animoca Brands, and HKT are forming a joint venture to create a Hong Kong dollar-backed stablecoin
- The group will apply for a license from the Hong Kong Monetary Authority under new stablecoin regulations
- Standard Chartered is one of only three banks authorized to issue Hong Kong dollars, alongside HSBC and Bank of China
- The venture has been part of Hong Kong’s stablecoin issuer sandbox program since July 2024
- The stablecoin aims to enhance both domestic and cross-border payment capabilities
Standard Chartered Bank Hong Kong, Animoca Brands, and Hong Kong Telecommunications (HKT) have announced plans to create a stablecoin backed by the Hong Kong dollar. The three companies will form a joint venture to develop and launch this digital currency, which would be one of the first regulated stablecoins in Hong Kong.
The partnership brings together three different areas of expertise. Standard Chartered contributes its banking knowledge and position as one of Hong Kong’s note-issuing banks. Animoca Brands brings its blockchain technology experience, while HKT adds its mobile payment systems knowledge to the project.
Hong Kong’s monetary system works differently from most countries. The Hong Kong Monetary Authority (HKMA) does not directly issue currency. Instead, three banks – HSBC, Bank of China (Hong Kong), and Standard Chartered – issue Hong Kong dollars under HKMA oversight. This makes Standard Chartered’s involvement in the stablecoin project particularly relevant.
The joint venture plans to seek approval from the HKMA under Hong Kong’s new stablecoin regulations. These rules were introduced to the Legislative Council in December 2024 and require stablecoin issuers to obtain an HKMA license.
Mary Huen, Chief Executive Officer of Standard Chartered’s Hong Kong and Greater China & North Asia division, expressed the bank’s goal to be among the first issuers of an HKD-backed stablecoin with its strategic partners.
The three companies have already gained practical experience through their participation in Hong Kong’s stablecoin issuer sandbox program. They joined this testing environment in July 2024, along with other companies including Jingdong Coinlink Technology and RD InnoTech.
The proposed stablecoin aims to serve multiple purposes. The joint venture plans to explore its use in both domestic and cross-border payments, potentially making transactions faster and more efficient.
Under the new regulations, stablecoin issuers must meet specific requirements. These include maintaining adequate reserves and ensuring price stability. These rules aim to prevent the problems seen with some unregulated stablecoins in other markets.
Similar Projects
Other companies are also working on similar projects. Jingdong Coinlink announced its plans for a Hong Kong dollar-pegged stablecoin in July, while RD InnoTech has partnered with HashKey exchange for stablecoin development.
The stablecoin initiative is part of Hong Kong’s broader push into digital assets. The city has already approved spot Bitcoin and Ether exchange-traded funds and created a licensing system for crypto exchanges.
Nine platforms have received licenses from the Securities and Futures Commission so far. HashKey was an early recipient, getting its license in November 2022.
The joint venture will combine Standard Chartered’s financial infrastructure with Animoca Brands’ Web3 expertise. This collaboration aims to tap into opportunities in the crypto space while maintaining regulatory compliance.
HKT’s involvement adds a practical layer to the project. As a major telecommunications service provider in Hong Kong, HKT brings experience in handling daily digital transactions for consumers.
The project represents a structured approach to digital currency development. By working within regulatory frameworks and combining traditional banking with new technology, the joint venture aims to create a stable and trusted digital version of the Hong Kong dollar.
The timeline for the license application and potential launch will depend on the regulatory review process. The HKMA’s stablecoin bill is currently progressing through its required readings in the Legislative Council.
Oliver Dale
Editor-in-Chief of CoinCentral and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology & a Free and Fair Internet for all. His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch & More. Contact Oliver@coincentral.com
