Big news from Hong Kong’s financial and tech sectors! Standard Chartered Bank Hong Kong, Animoca Brands, and Hong Kong Telecommunications (HKT) are teaming up. They’ve announced a partnership to launch a new stablecoin pegged to the Hong Kong dollar, all under a fresh joint venture.

Their next step is to seek approval from the Hong Kong Monetary Authority (HKMA), the city’s central banking authority.

Standard Chartered’s involvement is particularly interesting because of Hong Kong’s unique monetary setup. Unlike traditional central banks that issue currency directly, the HKMA oversees the process. In Hong Kong, the actual Hong Kong dollar notes are issued by three major banks: HSBC, Bank of China (Hong Kong), and Standard Chartered itself.

Standard Chartered isn’t new to the stablecoin world, having previously worked with issuers and participated in the HKMA’s initiatives around tokenized money. Joining them are Animoca Brands, a powerhouse in blockchain known as a ‘unicorn’ company, and HKT, experts in mobile payment solutions. Together, this joint venture aims to explore various uses for their stablecoin, including both local and international payments.

Hong Kong’s Stablecoin Bill and Licensing

To move forward, the venture will need to secure a license under Hong Kong’s proposed stablecoin bill, which is currently under regulatory review.

This bill reached the Legislative Council on December 6, 2024, and had its first reading on December 18. If it passes, it will require all stablecoin issuers to obtain an HKMA license and adhere to rules about reserves and maintaining price stability.

Notably, these three companies have already been involved in Hong Kong’s stablecoin issuer sandbox program since July 2024, along with Jingdong Coinlink Technology and RD InnoTech.

It’s worth mentioning that Jingdong Coinlink also revealed plans for their own Hong Kong dollar-backed stablecoin in July. Meanwhile, RD InnoTech has partnered with HashKey Exchange to develop their stablecoin offering.

Related: HashKey OTC secures in-principal license approval in Singapore

Hong Kong is definitely making a play to become a major hub for digital assets, positioning itself in competition with regional player Singapore.

The region has already given the green light to spot Bitcoin.