Hong Kong-based financial services company Standard Chartered and digital entertainment firm Animoca Brands have teamed up to pursue a stablecoin operating license within Hong Kong.
Standard Chartered and Animoca Brands to Launch Stablecoin in Hong Kong
Standard Chartered and Animoca Brands, a leading venture in digital entertainment, have announced plans to apply for a license to issue stablecoins in Hong Kong under the city's new digital asset regime. This move marks one of the first formal moves by a major global bank to tap into Hong Kong's ambitious plans to become a digital asset hub.
The regulatory body for the stablecoin license applications is the Hong Kong Monetary Authority (HKMA). The new legislation, part of Hong Kong's broader push to regulate crypto while still attracting legitimate players to its market, requires any company wishing to issue or market fiat-backed stablecoins to retail investors to obtain a license.
The specific products or uses that Standard Chartered has planned for the stablecoin remain unclear. However, Yat Siu, co-founder and executive chairman of Animoca Brands, sees potential use cases for stablecoins in cross-border payments, given Hong Kong's longstanding reputation as a global hub for the exchange of goods and services.
Through the joint venture Anchorpoint Financial Limited, formed with Standard Chartered Bank (Hong Kong) and Hong Kong Telecommunications (HKT), the group plans to leverage the HKMA’s sandbox program to explore both institutional and retail applications of stablecoins. The stablecoin framework in Hong Kong is designed for fiat-referenced stablecoins, implying that the digital assets' value is pegged to a real-world currency.
Yat Siu highlights the potential use cases of HKD-pegged stablecoins in Hong Kong primarily as a regulated bridge between traditional finance and digital assets. The stablecoins aim to support payment systems, facilitate capital market growth, and connect Web3 with conventional financial infrastructure. This initiative aligns with Hong Kong's ambition to reinforce its position as a leading international financial center through regulated digital finance innovations.
Yat Siu envisions stablecoins in Hong Kong serving these key use cases:
- Bridging traditional finance with digital assets by providing a regulated fiat-linked stablecoin option.
- Supporting payment system innovation through HKD-pegged digital currency.
- Enhancing capital market growth by enabling new financial instruments and on-chain settlements.
- Connecting Web3 ecosystems with mainstream finance, fostering broader digital asset adoption in Hong Kong’s financial hub.
The stablecoin licensing regime in Hong Kong officially came into effect on August 1, 20XX. If successful, Anchorpoint's stablecoin issuance could potentially unlock adoption and innovation in the stablecoin sector, as per Animoca Brands' Yat Siu. The stablecoin issuance by Anchorpoint could contribute to the growth of Hong Kong's digital asset ecosystem, given its ambition to become a significant player in the global digital asset market.
However, Yat Siu acknowledges that the market is still sorting out exactly how stablecoins will be used in practice. He believes that a locally issued stablecoin could facilitate cross-border payments, retail transactions, and B2B services in Hong Kong. The new legislation could serve as a turning point for the stablecoin industry in Hong Kong, according to Yat Siu.
Standard Chartered did not immediately respond to questions on what specific products or uses it has planned for the stablecoin. The stablecoin venture, Anchorpoint, aims to support Hong Kong as an international financial centre and digital assets hub.
- Standard Chartered and Animoca Brands plan to apply for a license to issue stablecoins in Hong Kong under the city's new digital asset regime, marking a move into the crypto industry by a major global bank.
- The Hong Kong Monetary Authority (HKMA) is the regulatory body for the stablecoin license applications, and any company wishing to issue or market fiat-backed stablecoins to retail investors must obtain a license under the new legislation.
- Yat Siu, co-founder and executive chairman of Animoca Brands, sees potential use cases for stablecoins in cross-border payments given Hong Kong's reputation as a global hub for the exchange of goods and services.
- Through Anchorpoint Financial Limited, a joint venture formed with Standard Chartered Bank (Hong Kong) and Hong Kong Telecommunications (HKT), the group plans to leverage the HKMA’s sandbox program to explore both institutional and retail applications of stablecoins.
- Yat Siu envisions the locally issued stablecoin in Hong Kong serving key use cases such as bridging traditional finance with digital assets, supporting payment system innovation, enhancing capital market growth, connecting Web3 ecosystems with mainstream finance, and facilitating cross-border payments, retail transactions, and B2B services in the financial hub.
