A major financial development is underway in Hong Kong as Standard Chartered Bank Hong Kong partners with Animoca Brands and Hong Kong Telecommunications (HKT) to launch a stablecoin backed by the Hong Kong dollar. This strategic collaboration seeks approval from the Hong Kong Monetary Authority (HKMA) to introduce a regulated digital currency designed for both local and international transactions.
Standard Chartered, a key player in global banking, brings extensive experience in stablecoin issuance and tokenized finance. Unlike many financial systems where central banks exclusively issue currency, Hong Kong operates under a unique framework where authorized banks—such as HSBC, Bank of China (Hong Kong), and Standard Chartered—are permitted to issue the Hong Kong dollar under HKMA oversight. This well-established structure provides a solid foundation for a compliant stablecoin.
Enhancing this initiative, Animoca Brands contributes its expertise in blockchain and digital asset integration, particularly in gaming and metaverse ecosystems. Meanwhile, HKT’s specialization in mobile payment technology ensures seamless adoption within consumer and business payment networks.
The joint venture plans to apply for a license under Hong Kong’s anticipated stablecoin legislation, which is currently under review. The bill was introduced to the Legislative Council in December 2024, with its first reading completed by December 18. Once enacted, the law will require stablecoin issuers to obtain an HKMA license and comply with strict reserve and price stability regulations.
Hong Kong has already established a stablecoin sandbox, providing a controlled environment for testing and regulatory evaluation before full-scale deployment. The proposed stablecoin will join other projects within this framework, including those from Jingdong Coinlink Technology and RD InnoTech, all striving for HKMA approval.
As part of its due diligence, the HKMA will rigorously evaluate stablecoin issuers based on their financial health, management structure, reserve assets, and stability mechanisms. Only licensed and regulated platforms will be authorized to issue or market stablecoins in Hong Kong. Additionally, the proposed legislation includes robust consumer protection measures, reinforcing trust and security for digital asset users.
This initiative marks a significant step in Hong Kong’s ambition to establish itself as a global leader in digital finance. By fostering regulatory clarity and enabling stablecoin innovation, the city is positioning itself at the forefront of the rapidly evolving digital currency landscape. The success of this initiative could serve as a model for other financial hubs seeking to integrate stablecoins while ensuring rigorous oversight and consumer protection.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist