The Hong Kong-based Standard Chartered Bank, Animoca Brands, and HKT have formed a strategic partnership to launch a joint venture to introduce a Hong Kong dollar-backed stablecoin.

According to a press release by Animoca Brands, one of the parties involved, the trio plans to apply for a license under Hong Kong’s new regulatory framework, utilizing the multinational bank’s global expertise in stablecoin issuance and its robust infrastructure.

The collaboration’s success depends on the complementary skills and contributions of the companies involved. Standard Chartered will leverage its experience in tokenized money projects, while Animoca Brands will bring its expertise and network in the Web3 space.

Meanwhile, HKT will contribute its mobile wallet expertise to develop innovative stablecoin solutions, potentially enhancing payment experiences for consumers and merchants.

A Win For Hong Kong?

Concerning the partnership, Bill Winters, Group Chief Executive, Standard Chartered, said, “Digital assets are here to stay and the development of different forms of tokenised money is integral to the advancement of this industry.”

“We are introducing solutions and instruments that service this market and meet the growing client demand.  As public chain instruments with proven use cases, stablecoins play a critical role in the overall digital asset ecosystem.  Standard Chartered’s bank-grade infrastructure, governance, and global reach mean that we are in a good position to materially contribute to the development of the ecosystem being built in Hong Kong and globally.”

The Group President of Animoca Brands, Evan Auyang, also expressed their enthusiasm about the joint venture between the three companies and how it will increase Hong Kong’s chances of becoming a global Web3 leader, driving industry growth while prioritizing safety and compliance.

Susanna Hui, the Group Managing Director at HKT, also added that the partnership aims to introduce an HKD-linked stablecoin that will improve payment efficiency and streamline transactions. In addition, it will support Hong Kong’s businesses and reinforce its position as a leading innovation hub.

The recent development is not Hong Kong’s first involvement with digital assets. Last year, an official in the city, Johnny Ng, proposed that Hong Kong invest a portion of its fiscal reserves in Bitcoin.

In August, one of Hong Kong’s largest online brokerages, Futu Securities International, launched retail Bitcoin (BTC) and Ethereum (ETH) trading on its platform.