Hong Kong's Stablecoin Revolution: Standard Chartered, Animoca Brands, and HKT Team Up
1min read Hong Kong is set to launch a new stablecoin, with a consortium led by Standard Chartered, Animoca Brands, and HKT seeking approval for the project. The trio aims to issue a stablecoin backed by the Hong Kong dollar (HKD), which could significantly impact the region's digital finance sector if approved.
The decision by these companies to enter the stablecoin market is notable, given Hong Kong's unique currency issuance system. Unlike most countries where central banks issue currency, Hong Kong's system involves private banks under the supervision of the Hong Kong Monetary Authority (HKMA). HSBC, Bank of China (Hong Kong), and Standard Chartered currently issue HKD under this supervision.
The partnership between Standard Chartered, Animoca Brands, and HKT brings together key players from different industries. Standard Chartered is a global bank with extensive financial experience, while Animoca Brands is a leader in blockchain technology and digital assets. HKT specializes in mobile payments. Together, they plan to explore the use of a stablecoin for payments within Hong Kong and potentially for cross-border transactions.
Hong Kong is also working on new regulations for stablecoins. In December 2024, lawmakers introduced a bill that would require stablecoin issuers to obtain a license from the HKMA. This law aims to ensure that stablecoins are backed by reserves and maintain a stable value. The three companies have already been testing their stablecoin ideas in Hong Kong's "sandbox" program since July 2024.
Hong Kong's growing interest in the crypto space is evident in its recent moves. The city has already approved Bitcoin and Ethereum exchange-traded funds (ETFs) and introduced strict rules for crypto exchanges. With Standard Chartered and its partners now entering the stablecoin space, Hong Kong's crypto market is heating up. If their plan gets approved, the city could soon have its first regulated HKD-backed stablecoin, opening new opportunities for digital payments.
