- Standard Chartered, Animoca, and HKT to launch HKD-backed stablecoin.
- Partnership aims to enhance cross-border payments and Web3 use cases.
- JV to leverage bank-grade infrastructure and blockchain expertise.
Standard Chartered, Animoca Brands, and HKT have teamed up in a historic joint venture to revolutionize Hong Kong’s financial landscape. This collaboration is set to bridge traditional finance with Web3 for improved payments.
HKD-backed Stablecoin
Standard Chartered, Animoca Brands, and HKT have formed a joint venture to apply for a license from the Hong Kong Monetary Authority (HKMA). Their goal is to issue a Hong Kong dollar-backed stablecoin, which will enhance both domestic and cross-border payments. The companies aim to leverage their respective strengths in the financial, telecommunications and Web3 sectors to drive innovation in the digital asset ecosystem.
Standard Chartered’s Hong Kong division (SCBHK) will bring its extensive experience with stablecoins and banking infrastructure. The bank will contribute its established governance and banking-grade infrastructure to the joint venture. Animoca Brands, a leader in Web3 technologies, will utilize its expertise in blockchain and Web3 applications to create new use cases for the digital currency.
HKT, a telecommunications and media service provider, will integrate the stablecoin into its mobile wallet services. This collaboration aims to improve payment efficiency and transaction security within Hong Kong’s rapidly growing digital economy. The joint venture partners plan to enhance the payment landscape by adopting stablecoins in both retail and enterprise markets.
The HKMA’s stablecoin issuer sandbox, launched in July 2024, has been a testing ground for these companies. The partners have been exploring the role of stablecoins in bridging Web3 and traditional finance. They expect to contribute to the development of the digital asset ecosystem in Hong Kong through their joint efforts.
Strategic Importance of the Joint Venture
Standard Chartered’s global network and experience in digital assets position it well to support the venture. The bank has previously worked with stablecoin issuers worldwide, allowing the venture to benefit from its infrastructure and regulatory compliance.
The joint venture will explore innovative use cases for the stablecoin, from institutional to individual applications. It will focus on enhancing payment systems, improving transaction transparency, and improving cross-border financial interactions. The partners believe this initiative will strengthen Hong Kong’s position as a global hub for digital assets.
Hong Kong’s Digital Future
Mary Huen, CEO of Standard Chartered Hong Kong, emphasized the bank’s commitment to promote financial innovation. She stated that the project will provide a secure medium of exchange for several uses.
Animoca Brands expressed enthusiasm for the project, citing the potential of such coins in the Web3 ecosystem. The company aims to help drive the adoption of stablecoins across various sectors. The joint venture aligns with Animoca’s mission to promote the safe and compliant growth of Web3 in Hong Kong.
HKT also expressed confidence in the project’s potential to improve payment systems. The company believes the stablecoin will benefit both merchants and consumers through improved transaction speed and security.