Stablecoins have a huge impact on the financial market as we know it, but more can still be done. Looking to take stablecoin usage to the next level in Hong Kong, Standard Chartered Bank (Hong Kong) Limited (SCBHK), Animoca Brands, and HKT have announced a joint venture (JV) to issue a Hong Kong dollar-backed stablecoin.
The process won’t be as simple as just launching a stablecoin though. The firms will need to apply for a licence from the Hong Kong Monetary Authority (HKMA) in the new regulatory regime. The JV has the potential to accelerate stablecoins in the region as, individually, SCBHK, Animoca Brands, and HKT are all innovators in the payments and web3 space. By combining their efforts, there could be a huge uptake in stablecoin usage.
SCBHK, Animoca Brands and HKT have been jointly participating in the HKMA stablecoin issuer sandbox launched in July 2024, to explore how stablecoins can play a key role in the development of financial markets and payments by bridging Web3 and traditional finance, thus strengthening Hong Kong’s position as a global digital assets hub. The JV is strategically positioned to be among one of the first issuers to pioneer this market in the region.
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