Standard Chartered Bank joins hands with Animoca Brands and HKT to enter the Hong Kong stablecoin market

Standard Chartered Bank, Animoca Brands, and HKT will jointly establish a joint venture and apply to the Hong Kong Monetary Authority (HKMA) for a license to issue a stablecoin supported by Hong Kong dollars.

Standard Chartered, Animoca Brands, and HKT join forces to enter the Stable Coin market

According to the announcement, the Hong Kong subsidiary (SCBHK) of Standard Chartered Bank, web3 investor Animoca Brands, and telecommunications company Hong Kong Telecom (HKT) will join forces to establish a joint venture to issue a Stable Coin pegged to the Hong Kong dollar. The joint venture plans to apply for a license from the Hong Kong Monetary Authority (HKMA) under the upcoming Stable Coin regulatory framework in Hong Kong, with the aim of becoming one of the first regulated issuers of Stable Coins.

The planned Stable Coin will integrate the banking infrastructure of Standard Chartered Bank, the cryptographic expertise of Animoca, and the mobile wallet technology of Hong Kong Telecom. The goal of these companies is to develop use cases in the payment, financial, and cross-border transaction fields.

According to The Block, Standard Chartered Bank's Hong Kong subsidiary (SCBHK), Animoca Brands, and HKT have participated in the development of a regulatory framework. In March 2024, the Hong Kong Monetary Authority will include them in the Stable Coin issuer sandbox, allowing them to explore how Stable Coins can bridge web3 and traditional finance, and promote Hong Kong as a global digital asset center.

Hong Kong has legislated discussions on Stable Coin regulation, and Circle is also actively expanding its business in Hong Kong

In December 2024, Hong Kong issued the "Stable Coin Act", which will establish a licensing and regulatory regime for stable coin issuers backed by legal tender coin. Last month, the Hong Kong Legislative Council discussed the bill for the first time and pointed out that stable coin issuers need to obtain approval from the Hong Kong Monetary Authority.

Stable Coin issuance Circle CEO Jeremy Allaire said in a recent interview that Hong Kong has become the core business development region for Circle. He believes that Hong Kong is a crucial hub for global trade and capital flows, which will greatly assist Circle's business expansion in Asia. Currently, Circle is also establishing coin exchange services in Hong Kong, making it convenient for local users to create and exchange USDC at any time. In addition, Allaire is optimistic about the Hong Kong government's policy direction in promoting Web3 and digital asset development, which will be a significant boost for the stablecoin market.

(Circle CEO Allaire Interview: Stable Coin Drives Mainstreaming of Cryptocurrency Industry, Hong Kong Serves as Circle's Gateway to Asia)

Circle also signed a memorandum of understanding (MOU) with Hong Kong Telecom HKT at the end of last year, aiming to use blockchain technology to create customer loyalty services and enhance interaction with merchants.

This article Standard Chartered Bank joins hands with Animoca Brands and HKT to enter the Hong Kong Stable Coin market first appeared on Chain News ABMedia.