- Standard Chartered, Animoca Brands, and HKT partner to apply for a license to issue HK dollar-backed stablecoins under HKMA’s new framework.
- The collaboration aims to simplify cross-border transactions and boost blockchain adoption with a stablecoin backed by the Hong Kong dollar.
Standard Chartered Bank (Hong Kong) Limited (SCBHK), Animoca Brands, and HKT have entered into an agreement to form a joint venture to apply for a license under the Hong Kong Monetary Authority’s (HKMA) new regulatory framework. They plan to issue a stablecoin backed by the Hong Kong dollar.
This action reflects Hong Kong’s goal to establish a center for blockchain-based financial innovation in Asia rather than only a commercial plan.
“Imagine being able to send money across borders in seconds, without high fees and complicated processes. This is what we want to make possible with a Hong Kong dollar-based stablecoin,” said a source involved in the project.
Along with helping domestic transactions, the plan to issue this stablecoin opens a lot of possibilities in international trade.
We’ve entered into agreements with @StanChart and HKT to establish a joint venture to apply for a license from the @hkmagovhk to issue a Hong Kong dollar-backed stablecoin.
For more information about Hong Kong’s digital asset ecosystem and the initiative to launch a HKD-backed… pic.twitter.com/mAh99bVdfV
— Animoca Brands (@animocabrands) February 17, 2025
Collaboration of Three Giants with Specific Roles
Three companies contribute special knowledge for this project. SCBHK boasts a strong infrastructure and long banking sector experience. Animoca Brands, meanwhile, adds knowledge of the Web3 ecosystem and an innovative stance in the blockchain space. Conversely, HKT makes advantage of its strengths in mobile wallet technology and the telecom industry.
This cooperation is seen as a crucial move among the rising need for dependable and consistent stablecoins. Hong Kong has proved its commitment to regulating digital assets by establishing a specific legal framework for stablecoin issuing. Clear rules help investors and consumers to feel more secure in applying this technology.
Potential Impact on the Local Crypto Ecosystem
The digital asset ecosystem in Hong Kong is expected to benefit from dollar-based stablecoins based in Hong Kong. This stablecoin can be a link between traditional banking and the blockchain world since full backing of local currencies promises stability. Local crypto users and entrepreneurs most likely embrace this creativity.
Still, there are other difficulties to be overcome. Among the factors that demand particular focus are tight rules, changes in the market, and public education regarding the advantages of stablecoins. Furthermore, under importance is maintaining public confidence in the security and stability of stablecoins.
Animoca Brands Expands Blockchain Influence with Oasys Partnership
In a previous report, CNF reported that Oasys had collaborated with Animoca Brands Japan to expand the blockchain-based gaming ecosystem globally. This collaboration also strengthens their presence in Greater China, which is one of the potential markets for digital asset adoption.
This action naturally reflects the aim of Animoca Brands to increase its impact in the blockchain industry: the cooperation between the firm and SCBHK and HKT follows from this direction. Expected to be a tool supporting transactions in several contexts, including the fast-expanding blockchain-based gaming environment, is the Hong Kong dollar-based stablecoin.
Although this project seems exciting, ground-based issues cannot be disregarded. Given that the authority of the HKMA imposes strict requirements in licensing digital assets, the process of acquiring a license from them might be a test in and of itself. Moreover, the success of this project depends much on public knowledge of the benefits and security of stablecoins.
