"Hong Kong's Big Three Team Up for HKD-Backed Stablecoin"

Standard Chartered, Animoca Brands, and Hong Kong Telecommunications (HKT) have joined forces to launch a Hong Kong dollar-backed stablecoin, seeking regulatory approval under the city's evolving digital asset framework. This strategic partnership aims to leverage the trio's expertise in traditional banking, blockchain technology, and mobile payment systems to revolutionize digital transactions within the region and beyond.

The group plans to apply for a license from the Hong Kong Monetary Authority (HKMA) to ensure compliance with the city's regulatory framework for stablecoin issuance. This move aligns with Hong Kong's ambition to solidify its position as a global leader in digital asset innovation, competing directly with neighboring Singapore in the digital finance and cryptocurrency sectors.

The collaboration brings together three distinct players, each contributing a unique expertise to the venture:

• Standard Chartered Bank Hong Kong: A key issuer of Hong Kong's fiat currency and a trusted financial institution with a deep understanding of traditional banking regulations and international financial markets.
• Animoca Brands: A globally recognized blockchain company and venture capital firm, known for its investments in metaverse projects, non-fungible tokens (NFTs), and Web3 applications.
• Hong Kong Telecommunications (HKT): A leading mobile payment and telecommunications provider, instrumental in expanding digital financial services and payment infrastructures across the region.

With this powerful alliance, the joint venture plans to explore various applications of stablecoin technology, including domestic and cross-border payments, integrating blockchain-based finance into everyday transactions, remittances, and digital commerce.

The announcement comes amid Hong Kong's ongoing legislative efforts to establish a clear regulatory framework for stablecoins. The proposed Stablecoin Bill, which entered the Legislative Council on Dec. 6, 2024, and underwent its first reading on Dec. 18, 2024, seeks to require stablecoin issuers to obtain an HKMA license and adhere to reserve, audit, and price stability requirements.

If enacted, the bill will introduce a stringent licensing regime similar to the licensing framework imposed on cryptocurrency exchanges by the Securities and Futures Commission (SFC). This move is designed to ensure investor protection and financial stability while promoting the growth of the stablecoin sector in Hong Kong.

The three companies behind the new stablecoin initiative have already been