Hong Kong Dollar Stablecoin Aims to Reduce USD Reliance in Belt and Road Settlements

On June 19, Evan Auyang, President of Anni Group, shared insights on the upcoming Hong Kong dollar stablecoin in an interview. The stablecoin, backed by the Hong Kong Monetary Authority, is set to be issued through a joint venture with Standard Chartered Bank and Hong Kong Telecom. Auyang highlighted the stablecoin's pivotal role in globalizing mainland asset transactions, emphasizing its potential to reduce reliance on the USD in Belt and Road settlements.

The Hong Kong SAR government has scheduled the Stablecoin Ordinance to take effect on August 1, 2025. Auyang noted that this ordinance signifies the start of a long-term digital asset ecosystem. He underscored the coin’s utility in gaming, trade, and financial settlements, stating that games are likely to achieve mass adoption in Web3 first. Anni Group, initially a mobile gaming firm, transitioned into a Web3 company after successes in blockchain games and NFTs. Its flagship project, The Sandbox, paved the way for ventures in DeFi, identity, and AI, with the stablecoin project continuing this evolution.

In July 2023, the HKMA selected Anni Group for its stablecoin sandbox program. The joint venture assigns specific roles to each partner: Anni Group will develop native Web3 use cases, Standard Chartered will manage customer onboarding and banking infrastructure, and HK Telecom will drive adoption through its e-payment app, Tap & Go. Auyang described stablecoins as the bridge between native and enterprise Web3, emphasizing the need for leading players from different sectors to ensure stablecoins thrive in real use cases. The stablecoin will support cross-border trade, game asset purchases, and blockchain finance, potentially becoming a core settlement tool for public chain financial services.

Anni Group aims to collaborate with mainland institutions on blockchain infrastructure, with many of its 570 investments including mainland talent. Auyang expressed interest in deeper cooperation despite regulatory restrictions, noting that mainland assets going global require a Hong Kong dollar stablecoin. The HKMA sandbox process provided Anni Group with insights into compliance, aligning the firm with KYC and AML norms. Auyang stressed the risks of unregulated stablecoins, highlighting the importance of legal backing for programmable features and 24/7 transaction settlement. He sees significant potential in applying stablecoins for consumer vouchers, trade, and asset chains.

Despite regulatory support, stablecoin adoption faces challenges. Auyang acknowledged that mainstream society lacks understanding of stablecoins, emphasizing the need for ecosystem education and real-world use. He pointed to global competition, particularly from the U.S., where the GENIUS Act has accelerated stablecoin innovation. Auyang urged Hong Kong to build globally competitive companies to lead the industry. Anni Group's business model includes developing Web3 projects, investing in startups, and offering consulting with performance-based fees. The company plans to announce new use cases for the Hong Kong dollar stablecoin, with regulation in place and strong partnerships potentially reshaping digital finance in Hong Kong and beyond.