February 20, 2025
By Anjali Kochhar
Standard Chartered has announced a partnership with Animoca Brands and Hong Kong Telecom (HKT) to establish a joint venture aimed at issuing a Hong Kong dollar-backed stablecoin. The consortium plans to apply for a license from the Hong Kong Monetary Authority (HKMA) under the city’s evolving regulatory framework for stablecoins.
Standard Chartered highlighted that the collaboration will leverage its “bank-grade infrastructure and rigorous governance” to ensure a secure and compliant stablecoin issuance. Animoca Brands, a global Web3 leader based in Hong Kong, will contribute by “tapping into crypto-native opportunities,” while HKT will use its expertise in mobile wallets to develop stablecoin use cases, particularly for domestic and cross-border payments.
“As public chain instruments with proven use cases, stablecoins play a critical role in the overall digital asset ecosystem,” said Standard Chartered CEO Bill Winters. “With our strong infrastructure, governance, and global reach, we are well-positioned to contribute to the development of Hong Kong’s digital asset landscape.”
Stablecoins are virtual assets (VAs) issued by private entities that maintain a stable value relative to government-issued fiat currencies or other reference rates. They act as a bridge for blockchain transactions that require fiat currency integration, making them a key component of the digital asset ecosystem.
Hong Kong has been actively positioning itself as a global cryptocurrency hub. In December, the government proposed a stablecoin bill to establish a regulatory framework for their issuance. By July, the HKMA had approved three stablecoin issuers, including Standard Chartered’s joint venture, Jingdong Coinlink Technology, and RD InnoTech to test their stablecoins in various real-world scenarios.
“This opportunity to become one of the first to issue a fiat-backed stablecoin under the HKMA’s licensing regime reinforces our belief that Hong Kong has a bright future as a global Web3 hub,” said Evan Auyang, president of Animoca Brands. He emphasised the importance of fostering industry growth in a secure and compliant manner.
Susanna Hui, managing director of HKT, noted that a Hong Kong dollar-linked stablecoin could improve payment efficiency, streamline transactions, and enhance security and transparency through advanced Web3 technology.
In a separate development, the Hong Kong High Court has approved the use of blockchain technology to serve a tokenized injunction order against two virtual asset wallet addresses linked to suspected fraud. The Financial Services and the Treasury Bureau described this as a “practical solution” for legal matters involving digital assets and a key precedent for future cases in Hong Kong.
Regulators in the city continue to work towards a robust legal framework to capitalise on the opportunities presented by Web3 and position Hong Kong as a global leader in the virtual asset space.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
