Hong Kong's Stablecoin Revolution: Standard Chartered, Animoca, and HKT Join Forces

Standard Chartered Bank Hong Kong, Animoca Brands, and Hong Kong Telecommunications (HKT) have joined forces to create a Hong Kong dollar-backed stablecoin through a new joint venture. The collaboration aims to leverage Standard Chartered's experience with stablecoin issuers and the Hong Kong Monetary Authority's (HKMA) tokenized money initiatives. Animoca Brands, a blockchain industry unicorn, brings its expertise in blockchain technology, while HKT contributes its specialization in mobile payment systems.

The joint venture will focus on developing stablecoin applications for both domestic and cross-border payments. This move aligns with Hong Kong's ongoing efforts to establish itself as a regional hub for digital assets, competing with Singapore. The city has already made significant strides by approving Bitcoin and Ethereum exchange-traded funds and implementing a stringent licensing framework for cryptocurrency exchanges.

The proposed stablecoin initiative is in line with Hong Kong's legislative process concerning stablecoins. The Hong Kong Legislative Council received a stablecoin bill on December 6, 2024, which underwent its first reading on December 18. Upon enactment, the legislation will mandate stablecoin issuers to secure an HKMA license and adhere to reserve and price stability mandates.

The trio has been active in Hong Kong's stablecoin issuer sandbox since July 2024, a testing ground for new concepts that also includes Jingdong Coinlink Technology and RD InnoTech. Jingdong Coinlink Technology has already announced its intention to launch a stablecoin pegged to the Hong Kong dollar, and RD InnoTech is collaborating with HashKey exchange to develop its stablecoin offering.

The regulatory environment in Hong Kong has been welcoming to digital asset ventures, with nine platforms obtaining licenses from the Securities and Futures Commission (SFC) to date. HashKey was among the first, securing its license in November 2022, and it remained one of the only two licensed exchanges until late 2024, highlighting the region's progressive stance on cryptocurrency regulation.