The future of digital finance in Hong Kong is taking a bold step forward as Standard Chartered Bank (Hong Kong), Animoca Brands, and HKT announce the formation of a strategic joint venture aimed at launching a Hong Kong dollar (HKD)-backed stablecoin. This initiative marks a pivotal moment in the convergence of traditional banking, Web3 innovation, and telecommunications infrastructure — positioning Hong Kong at the forefront of the global digital asset revolution.
Subject to the passage of the upcoming Stablecoins Bill, the joint venture intends to apply for a license under the new regulatory framework introduced by the Hong Kong Monetary Authority (HKMA). If approved, this would make the consortium one of the first official issuers of a regulated, fiat-collateralized stablecoin in the region.
A Powerful Tripartite Alliance
The collaboration brings together three industry leaders, each contributing unique strengths that are critical to building a secure, scalable, and widely adoptable digital currency solution.
Standard Chartered: Banking Infrastructure & Regulatory Expertise
As a global financial institution with deep roots in Asia, Standard Chartered brings bank-grade infrastructure, compliance rigor, and extensive experience in tokenized assets. The bank has actively participated in all of HKMA’s tokenised money projects over recent years, including central bank digital currency (CBDC) trials and tokenised deposit experiments.
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Bill Winters, Group Chief Executive of Standard Chartered, emphasized the strategic importance of stablecoins:
“Digital assets are here to stay… Stablecoins play a critical role in the overall digital asset ecosystem. With our global reach and governance standards, we’re well-positioned to contribute meaningfully to Hong Kong’s growing fintech landscape.”
Mary Huen, CEO of Hong Kong and Greater China & North Asia, added that the joint venture aims to launch an innovative medium of exchange that serves both individuals and institutions — reinforcing Hong Kong’s status as an international financial center.
Animoca Brands: Web3 Leadership & Ecosystem Reach
Headquartered in Hong Kong, Animoca Brands is a recognized leader in the Web3 space, known for its investments in blockchain gaming, metaverse development, and decentralized technologies. With a portfolio exceeding 540 companies — including giants like Axie Infinity, Polygon, OpenSea, and Dapper Labs — Animoca brings unparalleled access to crypto-native users and developers.
Evan Auyang, Group President of Animoca Brands, highlighted the broader implications:
“Stablecoins are one of the most proven use cases in Web3… This opportunity reinforces our belief that Hong Kong can become a global Web3 hub by fostering innovation within a safe, compliant environment.”
By integrating its vast network and technical expertise, Animoca will help drive real-world adoption of the HKD-backed stablecoin across gaming, DeFi (decentralized finance), NFT marketplaces, and cross-border commerce.
HKT: Technology Integration & Consumer Access
As Hong Kong’s premier technology, media, and telecommunications provider, HKT contributes mobile wallet capabilities, secure payment systems, and direct access to millions of retail consumers and merchants.
Susanna Hui, Group Managing Director of HKT, noted:
“Issuing an HKD-linked stablecoin will enhance payment efficiency, streamline transactions, and provide greater security through advanced Web3 innovations — ultimately benefiting the broader retail sector.”
HKT’s role is crucial in bridging digital assets with everyday commerce. Its infrastructure enables seamless integration of the stablecoin into point-of-sale systems, e-commerce platforms, and mobile payment apps — making it accessible beyond crypto enthusiasts to mainstream users.
Bridging Traditional Finance and Web3
One of the most significant aspects of this joint venture is its participation in the HKMA’s Stablecoin Issuer Sandbox, launched in July 2024. Within this controlled environment, the partners have been testing how stablecoins can effectively connect traditional financial systems with blockchain-based ecosystems.
This hybrid approach allows for:
- Regulatory compliance through licensed banking oversight
- Transparency and auditability via on-chain tracking
- Interoperability across multiple blockchain networks
- Consumer protection through full HKD reserves and regular attestations
The goal is not just to digitize currency but to create a trusted, efficient, and inclusive financial layer that supports everything from peer-to-peer remittances to programmable smart contracts in enterprise settings.
Why Hong Kong Is Becoming a Digital Asset Hub
Hong Kong has made deliberate moves over the past two years to position itself as a leader in regulated digital asset innovation. From launching its virtual asset licensing regime to supporting tokenised deposits and CBDC research, the city is building a comprehensive ecosystem where fintech and finance coexist under clear rules.
This joint venture exemplifies that vision — combining institutional credibility with technological agility. If successful, the HKD-backed stablecoin could serve as:
- A domestic digital currency alternative for everyday payments
- A cross-border settlement tool for trade and remittances
- A bridge asset for investors moving between fiat and crypto markets
- A foundation for new financial products, such as yield-bearing wallets or tokenized treasury instruments
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Frequently Asked Questions (FAQ)
Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset — in this case, the Hong Kong dollar (HKD). It combines the speed and accessibility of digital assets with the price stability of traditional fiat currencies.
Q: Will the HKD-backed stablecoin be available to the public?
A: While specific rollout details have not yet been announced, the joint venture aims to make the stablecoin accessible to both individuals and businesses — particularly through integrated mobile wallets and merchant platforms.
Q: How will user funds be protected?
A: The stablecoin will be fully backed by HKD reserves held in regulated financial institutions. Regular audits and attestations will ensure transparency and trustworthiness.
Q: Is this related to Hong Kong’s central bank digital currency (CBDC)?
A: No. This is a privately issued stablecoin operating under regulatory oversight. While complementary to the HKMA’s CBDC efforts (e-HKD), it functions as a separate instrument focused on commercial and Web3 use cases.
Q: When will the stablecoin launch?
A: The launch depends on legislative progress — specifically the passage of the Stablecoins Bill — followed by regulatory approval. The joint venture is positioned to be among the first movers once licensing begins.
Q: Can this stablecoin be used outside Hong Kong?
A: Yes, particularly for cross-border payments and international commerce. Its integration with blockchain networks enables global transferability while maintaining local currency stability.
Core Keywords
- HKD-backed stablecoin
- Hong Kong Monetary Authority (HKMA)
- Standard Chartered
- Animoca Brands
- HKT
- Web3 innovation
- Tokenised money
- Digital asset ecosystem
With strong institutional backing, regulatory alignment, and cutting-edge technology integration, this joint venture represents more than just a new digital currency — it’s a foundational step toward a more connected, efficient, and innovative financial future for Hong Kong and beyond.
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