In the strategic partnership, Standard Chartered Bank (Hong Kong) Limited (“SCBHK”), Animoca Brands, and HKT have joined forces to issue a Hong Kong dollar-backed stablecoin. The partnership will apply for a license from the Hong Kong Monetary Authority (“HKMA”) under the new regulatory framework. This development will foster stablecoin’s applications in both domestic and international payments.
Bill Winters, Group Chief Executive, Standard Chartered, stated in the announcement, “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, commented on this partnership, “Standard Chartered looks forward to becoming one of the first issuers launching an HKD-backed stablecoin together with our strategic partners, bringing an innovative medium of exchange to Hong Kong and charting a new chapter for Hong Kong’s digital asset market. 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.”
Evan Auyang, Group President of Animoca Brands, said, “Animoca Brands is absolutely thrilled to collaborate with SCBHK and HKT on this joint venture. Stablecoins are one of the best proven and most widely recognised use cases for Web3, and we are still in the early stages for mass adoption of stablecoins across retail, enterprises and institutions. 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.”
Stablecoins are increasingly becoming popular among major brands to redefine their financial landscape. However, the changing dynamics of the regulatory environment have forced stablecoin issuers to build compliance-friendly digital assets.
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Source: https://www.cryptonewsz.com/animoca-brands-hkt-issue-hkd-backed-stablecoin/