Standard Chartered Bank (Hong Kong) Limited (SCBHK), Animoca Brands, and HKT have announced a joint venture aimed at issuing a Hong Kong dollar-backed stablecoin under Hong Kong’s new regulatory framework. The companies have entered agreements to apply for a license from the Hong Kong Monetary Authority (HKMA) as part of the initiative.

According to the announcement, Animoca Brands will contribute its industry expertise and network within the crypto sector to explore potential use cases for the stablecoin. The company has been actively involved in digital asset development and has emphasized the role of stablecoins in financial innovation.announced a joint venture aimed at issuing a Hong Kong dollar-backed stablecoin under Hong Kong’s new regulatory framework. 

The companies have entered agreements to apply for a license from the Hong Kong Monetary Authority (HKMA) as part of the initiative.

The joint venture marks one of the first formal moves under Hong Kong’s evolving stablecoin regulations, introduced to oversee digital assets and tokenized money. 

SCBHK, which has previously participated in the HKMA’s tokenized money projects, will provide banking infrastructure and governance expertise to the initiative.

The initiative brings together key players from banking, Web3, and telecommunications. Standard Chartered’s involvement follows its engagement with stablecoin issuers globally. The bank has highlighted its role in digital asset development, including projects related to Central Bank Digital Currencies (CBDCs) and tokenized 

Meanwhile, HKT, a telecommunications and financial technology provider, will utilize its mobile wallet experience to facilitate payments and cross-border transactions using the stablecoin. The firm has stated its goal of streamlining financial transactions and improving payment efficiency through digital assets.

The joint venture follows the HKMA’s introduction of a stablecoin issuer sandbox in July 2024, which aims to assess the role of fiat-backed stablecoins in financial markets. The HKMA has set guidelines requiring stablecoin issuers to maintain full reserves backing their issued tokens and to comply with anti-money laundering and financial stability measures.