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Standard Chartered Bank Hong Kong (SCBHK), Animoca Brands, and HKT have announced a joint venture to develop and issue a Hong Kong dollar-backed stablecoin, marking a major step in Hong Kong’s push to establish itself as a global leader in regulated digital assets.
The consortium intends to apply for a license under the Hong Kong Monetary Authority’s (HKMA) new regulatory framework for stablecoin issuers, with plans to pioneer the region’s first compliant HKD-pegged digital currency, according to a statement on Monday.
This initiative brings together three key players across banking, Web3, and telecom sectors, each contributing distinct expertise. Standard Chartered, leveraging its global banking infrastructure and experience with stablecoin projects worldwide, aims to provide institutional-grade governance and security. Animoca Brands will integrate the stablecoin into the broader digital economy, enabling adoption across metaverse applications, gaming, and decentralized finance (DeFi). HKT, a telecom and fintech powerhouse, will contribute its mobile wallet expertise to drive real-world payment adoption, enhancing cross-border transactions and merchant integrations.
"We are 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. 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," Bill Winters, group chief executive, said.
Stablecoins as a Catalyst for Digital Finance Growth
Stablecoins, particularly fiat-backed variants, have emerged as a vital component of the evolving digital asset ecosystem. Globally, stablecoins like USDC and USDT have facilitated billions in on-chain transactions, improving efficiency and reducing settlement times. In the U.S., major institutions such as PayPal, BlackRock, and Franklin Templeton have launched or invested in tokenized money markets and stablecoin projects, signaling increasing institutional adoption.
For Hong Kong, an HKD-backed stablecoin represents a crucial step toward digital currency adoption in a highly regulated environment. Unlike existing global stablecoins, a locally issued HKD stablecoin could offer greater regulatory clarity, compliance with financial laws, and integration into Hong Kong’s financial infrastructure, including the e-HKD initiative and upcoming tokenization projects.
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Regulatory Milestone and Market Potential
Hong Kong has been steadily positioning itself as a leading jurisdiction for regulated digital assets. The HKMA’s stablecoin issuer sandbox, launched in July 2024, has been exploring the feasibility of fiat-backed digital currencies in real-world applications. SCBHK, Animoca Brands, and HKT have been active participants in this initiative, giving them a strategic advantage in securing one of the first licenses under the upcoming regulatory framework.
"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. 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," Animoca Brands president Evan Auyang said.
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