Standard Chartered Bank Hong Kong, Animoca Brands, and Hong Kong Telecommunications (HKT) in the framework of a new joint venture will issue Hong Kong dollar-backed stablecoin.
The mentioned companies intend to apply for a license from the Hong Kong Monetary Authority (HKMA), which is actually the central bank of the city.
The media drew attention to the fact that a notable circumstance is the involvement of Standard Chartered in the specified project. In the relevant context, Hong Kong’s unique monetary system was highlighted. The HKMA does not issue a currency, unlike traditional central banks. Hong Kong dollars are issued by HSBC, Bank of China (Hong Kong) and Standard Chartered. As part of the relevant process, the HKMA performs oversight functions.
Standard Chartered works with issuers of stablecoins and participates in HKMA initiatives related to the tokenization of money. Animoca Brands is a major player in the blockchain market and has the status of a unicorn. HKT specializes in mobile payment systems. A joint venture, which includes the mentioned companies, intends to explore the possibilities of stablecoin applications. This includes paying attention to making domestic and cross-border payment transactions.
The mentioned venture will apply for a license following the proposed Hong Kong bill on stablecoins. It is worth noting that this bill is still under review.
The bill on stablecoins entered the Legislative Council on December 6, 2024, and less than two weeks later passed the first of three readings. If enforced, it will require the mentioned currency issuers to obtain an HKMA license and comply with reserve and price stability requirements.
Standard Chartered Bank Hong Kong, Animoca Brands, and HKT have been part of the Hong Kong-based stablecoin issuer sandbox since July last year. Jingdong Coinlink Technology and RD InnoTech are also involved in this platform.
Last July, Jingdong Coinlink announced plans to issue a stablecoin backed by the Hong Kong dollar. At that time, RD InnoTech collaborated with the HashKey exchange to develop its own stablecoin.
Hong Kong is currently positioning itself as a digital asset hub that competes with regional rival Singapore.
The special administrative region has approved spot Bitcoin and Ether exchange-traded funds. Hong Kong also imposed a strict regime for licensing crypto exchanges.
As of today, nine platforms have secured licenses from the Securities and Futures Commission (SFC). HashKey was licensed in November 2022 and was one of two licensed exchanges in Hong Kong until the end of 2024.
As we have reported earlier, Stablecoin Market Cap Reaches All-Time-High of Over $200B.
