Standard Chartered Bank Hong Kong, Animoca Brands and Hong Kong Telecommunications (HKT) have partnered to issue a Hong Kong dollar-backed stablecoin under a new joint venture.
The group plans to apply for a license from the Hong Kong Monetary Authority (HKMA), the city’s de facto central bank.
Standard Chartered’s involvement is notable given Hong Kong’s unique monetary system. Unlike a traditional central bank, the HKMA does not issue currency. Instead, Hong Kong dollars are issued by HSBC, Bank of China (Hong Kong) and Standard Chartered under the HKMA’s oversight.
Standard Chartered has worked with stablecoin issuers and participated in HKMA’s tokenized money initiatives. Animoca Brands is a major player in the blockchain scene with a unicorn status, while HKT specializes in mobile payment systems. The joint venture plans to explore stablecoin applications, including domestic and cross-border payments.
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Hong Kong’s stablecoin bill and licensing
The venture will apply for a license under Hong Kong’s proposed stablecoin bill, which is still under review.
The bill entered the Legislative Council on Dec. 6, 2024, and had its first of three readings on Dec. 18. If enacted, it will require stablecoin issuers to obtain an HKMA license and comply with reserve and price stability requirements.
The three companies have been part of Hong Kong’s stablecoin issuer sandbox since July 2024, alongside Jingdong Coinlink Technology and RD InnoTech.
Hong Kong’s stablecoin sandbox participants. Source: HKMA
Jingdong Coinlink announced plans for a Hong Kong dollar-pegged stablecoin in July, while RD InnoTech partnered with HashKey exchange to develop its own stablecoin.
Related: HashKey OTC secures in-principal license approval in Singapore
Hong Kong has positioned itself as a digital asset hub, competing with regional rival Singapore.
The special administrative region has approved spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds and imposed a strict licensing regime for crypto exchanges.
Nine platforms have secured licenses from the Securities and Futures Commission (SFC) so far. HashKey obtained its license in November 2022 and was one of only two licensed exchanges in Hong Kong until late 2024.
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