Standard Chartered, Animoca Brands & HKT Partner to Launch HKD Stablecoin

Standard Chartered Bank (Hong Kong) Limited (SCBHK), Animoca Brands, and HKT have announced a landmark joint venture to issue a Hong Kong dollar-backed stablecoin.

The three firms will apply for a stablecoin issuance license under the Hong Kong Monetary Authority’s (HKMA) newly introduced regulatory regime.

SCBHK brings its banking expertise and robust financial infrastructure, having previously participated in HKMA’s tokenized money projects.

Animoca Brands, a leading Web3 company, will leverage its deep industry connections to explore innovative use cases within the crypto ecosystem.

HKT, with its strong presence in the telecommunications and mobile payments sector, will facilitate adoption through its mobile wallet technology.

Together, these companies aim to create a stablecoin that enhances payment efficiency and broadens the scope of digital transactions locally and internationally.

We’ve entered into agreements with @StanChart and HKT to establish a joint venture to apply for a license from the @hkmagovhk to issue a Hong Kong dollar-backed stablecoin.

For more information about Hong Kong’s digital asset ecosystem and the initiative to launch a HKD-backed… pic.twitter.com/mAh99bVdfV

— Animoca Brands (@animocabrands) February 17, 2025

Hong Kong’s Stablecoin Ambitions: Can Standard Chartered Make It Possible?

Launching an HKD-backed stablecoin is a strategic move in Hong Kong’s broader efforts to integrate digital assets into its financial system.

Stablecoins have emerged as an essential bridge between traditional finance and decentralized digital economies. They offer a stable medium of exchange for both retail and institutional users.

As Evan Auyang, Group President, Animoca Brands, particularly said:

“Stablecoins are one of the best proven and most widely recognised use cases for Web3, and we are still in the early stages for mass adoption of stablecoins across retail, enterprises and institutions.”

Hong Kong’s regulatory authorities have been proactive in defining a framework that ensures compliance while fostering innovation.

SCBHK, Animoca Brands, and HKT have already been active participants in HKMA’s stablecoin issuer sandbox, which was introduced in July 2024.

This regulatory sandbox has allowed firms to test and refine stablecoin applications in real-world settings, ensuring they meet stringent security and transparency standards before officially launching.

The joint venture is expected to accelerate the mainstream adoption of digital assets. Moreover, the stablecoin will facilitate seamless cross-border payments.

Privacy and Security: A Major Concern

While the introduction of an HKD-backed stablecoin is set to bring numerous benefits, it also raises questions regarding privacy, security, and regulatory oversight.

Since stablecoins operate at the intersection of traditional banking and decentralized finance, user protection against potential risks such as cyber threats and financial fraud is a priority.

However, the HKMA’s licensing framework aims to mitigate these risks by implementing strict compliance measures, including robust KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols.

Moreover, this partnership came just after the Securities and Futures Commission (SFC) of Hong Kong held its first Virtual Asset Consultative Panel (VACP) meeting to shape the city’s digital asset regulations.

🌐 Hong Kong's SFC kicks off its first Virtual Asset Consultative Panel meeting to shape digital asset regulation.#HongKong #VirtualAssetshttps://t.co/v9ftbAOiNH

— Cryptonews.com (@cryptonews) February 14, 2025

The panel, chaired by Dr. Eric Yip, includes representatives from all licensed virtual asset trading platforms (VATPs) and aims to balance market development with investor protection.

Dr. Yip emphasized that continuous dialogue is key to bridging innovation and compliance, potentially setting new regulatory standards for virtual assets, including decentralized finance (DeFi), stablecoins, and tokenized assets.

The VACP’s formation follows the city’s recent move to recognize cryptocurrency holdings as valid proof of assets for investment immigration under the New Capital Investment Entrant Scheme (New CIES).

🇭🇰 Hong Kong now accepts Bitcoin and Ether as proof of wealth for investment visas, signaling a progressive shift in its investment policies.#Bitcoin #HongKong #NewCIEShttps://t.co/ARrNlRQX8M

— Cryptonews.com (@cryptonews) February 11, 2025

This allows applicants to use Bitcoin (BTC) and Ether (ETH) to meet the HK$30 million ($3.8 million) residency requirement. The first crypto-based application was approved in October 2024, and the second was approved on February 7, 2025.

Meanwhile, the SFC has been expanding its oversight under strict compliance measures, recently granting operational licenses to two crypto exchanges, PantherTrade and YAX.