Quick take:
- Standard Chartered Bank’s experience working with stablecoin issuers globally allows the joint venture to have bank-grade infrastructure and rigorous governance.
- Animoca Brands’ extensive Web3 network allows the joint venture to tap into crypto-native opportunities.
- Hong Kong Telecom’s mobile wallet technology allows the joint venture to develop extensive stablecoin use cases.
Standard Chartered Bank Hong Kong Ltd, Animoca Brands, and Hong Kong Telecom (HKT) have formed a joint venture to issue a Hong Kong dollar-backed stablecoin. The three companies plan to jointly apply for a license from the Hong Kong Monetary Authority (HKMA), which would allow them to issue the HKD-based stablecoin.
As part of the partnership, the joint venture will leverage Standard Chartered Bank’s experience working with stablecoin issuers globally and with the HKMA. This will enable the venture to have a bank-grade infrastructure and rigorous governance.
On the other hand, Animoca Brands has established itself as one of the leading Web3 companies in the industry, amassing a network of more than 180 portfolio companies. This allows the joint venture to access a diverse range of crypto-native opportunities.
Elsewhere, Hong Kong Telecom has established itself in the telecommunications and fintech crossover industry with its mobile wallet technology. This allows the joint venture to develop extensive stablecoin use cases.
Commenting on the announcement, Bill Winters, Group Chief Executive, Standard Chartered, said, “Digital assets are here to stay and the development of different forms of tokenised money is integral to the advancement of this industry. That is why we are actively involved in various Central Bank Digital Currencies, tokenised deposits and, of course, stablecoins projects. “
Evan Auyang, Group President, Animoca Brands commented: “This opportunity to become one of the first to issue a fiat-backed stablecoin under the HKMA’s licensing regime reinforces our conviction that Hong Kong has a bright future as a global Web3 hub, leading the charge to grow the industry in a safe and compliant manner.”
Susanna Hui, Group Managing Director, HKT added: We believe that issuing an HKD-linked stablecoin will enhance payment efficiency, streamline transactions, and provide greater security and transparency through advanced Web3 innovations, ultimately benefiting the broader retail sector.”
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