The Hong Kong Standard Chartered Bank Limited (SCBHK), Animoca Brands, and HKT have agreed to form a joint venture (JV). This is so that they can apply for a license from the Hong Kong Monetary Authority (HKMA) under the new regulatory regime(1) to create a stablecoin backed by the Hong Kong dollar.
The three have all been working together in the HKMA stablecoin issuer sandbox since it began in July 2024. The goal is to find out how stablecoins can help the growth of financial markets and payments by connecting Web3 and traditional finance, making Hong Kong a more important hub for digital assets around the world.
Standard Chartered Bank (Hong Kong) Limited SCBHK, Animoca Brands and HKT have signed an agreement to jointly establish a joint venture to apply for a license under the Hong Kong Monetary Authority’s new regulatory framework to issue Hong Kong dollar-backed stablecoins.…
The JV is set up in a way that makes it possible for it to be one of the first issuers in the region to enter this market. Every organization has its role.
Standard Chartered, Animoca Brands and HKT team up
Standard Chartered has worked with stablecoin issuers. This will allow the joint venture to use its bank-grade infrastructure and strict oversight fully.
Animoca Brands will use its industry expertise and extensive network in the Web3 space to help the JV capitalize on crypto-native opportunities. In addition, it will explore innovative use cases across the Web3 ecosystem that will support the JV’s long-term growth.
HKT, a technology company, will leverage its mobile wallet expertise to enable the JV to develop unique stablecoin use cases. This will improve both domestic and cross-border payments and provide additional benefits to consumers and merchants alike.
This is a major move for China’s crypto—the US stablecoins, especially the USDT which is already having trouble in some nations.
Recently, the US introduced two stablecoin bills to regulate stablecoin issuers. Analysts said that for Tether to follow the planned US stablecoin rules, it might have to sell assets that don’t follow the rules.
In addition, Tether has struggled in Europe. The Markets in Crypto-Assets (MiCA) rules say that large fiat-pegged token issuers must keep 60% of their reserves in banks in the European Union. This caused USDT to be taken off of a number of European exchanges. This said, US stablecoins might welcome a new competitor.
The organization’s execs’ statements about the JV
Standard Chartered’s Group Chief Executive Bill Winters asserted that digital assets are here to stay and the development of various forms of tokenized money is essential to the advancement of this industry.
The company is actively engaged in a variety of Central Bank Digital Currencies, tokenized deposits, and stablecoins projects
He said, “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.”
Mary Huen, Chief Executive Officer, Hong Kong and Greater China & North Asia, Standard Chartered, expressed excitement about this move. She said Standard Chartered looks forward to becoming one of the first issuers to launch an HKD-backed stablecoin. She said they look forward to bringing an innovative medium of exchange to Hong Kong and charting a new chapter for Hong Kong’s digital asset market.
She added, “By leveraging the bank’s and our partners’ core strengths, we aim to launch a stablecoin that can be used securely by institutions and individuals across a wide number of use cases. We are dedicated to staying at the forefront in driving fintech innovation alongside the regulators, partners, and clients, further consolidating the role of Hong Kong as an international financial center.”
In the same light, Evan Auyang, Group President, Animoca Brands, said, “Stablecoins are one of the best proven and most widely recognized use cases for Web3, and we are still in the early stages for mass adoption of stablecoins across retail, enterprises, and institutions.”
Evans Auyang added, “This opportunity to become one of the first to issue a fiat-backed stablecoin under the HKMA’s licensing regime reinforces our conviction that Hong Kong has a bright future as a global Web3 hub, leading the charge to grow the industry in a safe and compliant manner.”
Susanna Hui, Group Managing Director, HKT, said, “We believe that issuing an HKD-linked stablecoin will enhance payment efficiency, streamline transactions, and provide greater security and transparency through advanced Web3 innovations, ultimately benefiting the broader retail sector.”
When it comes to the crypto industry, China would rather choose a more secure path. Stablecoins come with some level of safety. This year, China’s startup AI shook global AI by innovating a smart AI chatbot with the least funds ever used. Now, three of their giants have entered the crypto market.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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