Standard Chartered and Animoca Brands team up for HKD-backed stablecoin launch

Global banking giant Standard Chartered is teaming up with blockchain gaming and digital assets venture firm Animoca Brands on a significant blockchain-related venture.

Per a press release, the collaboration also involves local telecom giant HKT and will see the three partners eye a new stablecoin pegged on the Hong Kong Dollar.

Standard Chartered Bank, Animoca Brands and HKT revealed their strategic partnership in an announcement on Monday, February 17.

A HKD-backed stablecoin

Standard Chartered, Animoca Brands and HKT’s joint stablecoin venture has its eyes set on regulatory approval from the Hong Kong Monetary Authority.

The license will allow the companies to proceed with the goal of launching a HKD-backed stablecoin.

If HKMA gives a nod to the application, the new stablecoin will be Standard Chartered’s latest foray into the ecosystem.

Like its other partnerships across the industry, this joint venture with Animoca Brands, and HKT will look to leverage the lender’ bank-grade infrastructure.

The deal will support the growing tokenized money products market, the companies said.

Commenting on the development, Standard Chartered Group chief executive Bill Winters noted:

Winters added that the bank’s initiatives bring to the market key solutions and instruments, meeting growing demand from customers. 

“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, Standard Chartered’s chief executive officer of Hong Kong and Greater China & North Asia, also commented on the partnership and what it means for the region. 

Hong Kong's stablecoin issuer sandbox

SCBHK is a key player in Hong Kong’s stablecoin issuer sandbox.

Therefore, HKMA's approval could be the key to a HKD-backed stablecoin.

HKMA launched its stablecoin sandbox in July 2024.

SCBHK, Animoca Brands and HKT are among pioneer participants.

Notably, the sandbox allows issuers to explore what role stablecoins have in the overall growth of the financial markets, including bridging web3 and traditional finance.

In the market, the dominant stablecoin is Tether (USDT), a dollar-backed stablecoin.

USDT currently accounts for over $141 billion in market cap.

Meanwhile, Circle's USDC (USDC) is the second largest, having recently surged past $56 billion.