Hong Kong continues to solidify its position as a leading hub for digital assets, unveiling a major new collaboration aimed at driving innovation in the blockchain and cryptocurrency space. In a strategic move to strengthen its fintech infrastructure, industry giants Standard Chartered, Animoca Brands, and Hong Kong Telecom (HKT) have agreed to form a joint venture focused on issuing a Hong Kong dollar (HKD)-backed stablecoin.
This initiative marks a pivotal step in Hong Kong’s broader ambition to become a global Web3 and digital asset center. The new stablecoin project will operate under Hong Kong’s evolving regulatory framework, emphasizing compliance, security, and real-world utility across both domestic and cross-border financial applications.
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Building a Regulated Stablecoin Ecosystem
The Hong Kong Monetary Authority (HKMA) has been actively laying the groundwork for a robust and secure stablecoin environment. In December 2024, it introduced a comprehensive stablecoin bill designed to establish a clear regulatory framework for issuers. This legislation aims to ensure transparency, consumer protection, and financial stability while encouraging innovation in the digital currency space.
As of mid-2024, the HKMA had already approved three stablecoin issuers for pilot testing in real-world scenarios. These include a joint venture involving Standard Chartered Bank, as well as subsidiaries of JD Technology (JD Digits) and Vention Technologies. The new partnership between Standard Chartered, Animoca Brands, and HKT builds upon this foundation and signals growing institutional confidence in Hong Kong’s crypto-friendly policies.
Strategic Roles of Key Partners
Each member of the consortium brings unique expertise to the table, creating a well-rounded ecosystem capable of delivering scalable and secure digital financial solutions.
Standard Chartered: Banking-Grade Infrastructure and Governance
As a globally recognized financial institution, Standard Chartered is contributing its bank-grade infrastructure and rigorous compliance protocols. The bank emphasizes that its involvement ensures the stablecoin will meet the highest standards of security, transparency, and regulatory adherence.
Bill Winters, CEO of Standard Chartered, stated:
"Stablecoins are becoming essential tools on public blockchains with mature use cases. With our robust infrastructure, governance model, and global reach, we are well-positioned to contribute meaningfully to Hong Kong’s digital asset evolution."
This institutional backing provides critical trust and credibility—key factors in driving mainstream adoption of digital currencies.
Animoca Brands: Web3 Innovation and Ecosystem Development
Animoca Brands, a Hong Kong-based leader in the Web3 and blockchain gaming space, brings deep expertise in decentralized technologies and digital asset ecosystems. The company has been instrumental in advancing NFTs, metaverse platforms, and tokenized economies worldwide.
Evan Auyang, President of Animoca Brands, expressed enthusiasm about the project:
"Being among the first institutions to issue fiat-backed stablecoins under the HKMA’s licensing regime reinforces our belief in Hong Kong’s bright future as a global Web3 hub. We’re committed to advancing the industry in a secure and compliant manner."
By integrating crypto-native innovations, Animoca helps bridge traditional finance with next-generation digital experiences.
Hong Kong Telecom: Real-World Payment Integration
HKT, one of Hong Kong’s largest telecommunications providers, is leveraging its advanced mobile wallet technology and extensive customer base to develop practical applications for the stablecoin. The company is particularly focused on enhancing domestic and cross-border payments, aiming to improve transaction speed, reduce costs, and increase transparency.
According to HKT Managing Director Alex Au:
"A Hong Kong dollar-pegged stablecoin can significantly boost payment efficiency through cutting-edge Web3 technology. It simplifies transaction processes while enhancing security and traceability."
Their role is crucial in moving beyond theoretical models and delivering tangible benefits to consumers and businesses alike.
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What Are Stablecoins? A Brief Overview
Stablecoins are a type of virtual asset (VA) issued by private entities whose value is pegged to a stable reference—typically a government-issued fiat currency like the US dollar or, in this case, the Hong Kong dollar. Their primary purpose is to combine the benefits of blockchain technology—such as fast settlement, decentralization, and transparency—with the price stability of traditional money.
They serve as a vital bridge between conventional finance and the digital asset ecosystem, enabling seamless value transfer across platforms, supporting decentralized finance (DeFi) applications, facilitating remittances, and powering smart contracts.
There are several types of stablecoins:
- Fiat-collateralized: Backed 1:1 by reserves of fiat currency (e.g., USD or HKD).
- Crypto-collateralized: Secured by other digital assets.
- Algorithmic: Use algorithms to control supply and maintain price stability.
The proposed HKD-backed stablecoin falls into the first category—fiat-collateralized—ensuring high reliability and regulatory alignment.
Why Hong Kong’s Stablecoin Push Matters
Hong Kong’s aggressive push into digital assets reflects a long-term vision to remain competitive in the global financial landscape. By fostering public-private partnerships and implementing forward-looking regulations, the city aims to:
- Attract international fintech investment
- Support innovation in blockchain and DeFi
- Enhance financial inclusion and efficiency
- Position itself as Asia’s premier Web3 gateway
With its strong legal framework, open economy, and proximity to mainland China (while maintaining separate regulatory autonomy), Hong Kong is uniquely positioned to lead in regulated digital currency innovation.
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Frequently Asked Questions (FAQ)
Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, such as a fiat currency like the Hong Kong dollar or US dollar. It combines blockchain efficiency with minimal price volatility.
Q: Who is issuing the new HKD-backed stablecoin?
A: The stablecoin will be issued by a joint venture between Standard Chartered Bank, Animoca Brands, and Hong Kong Telecom (HKT), operating under the regulatory oversight of the Hong Kong Monetary Authority.
Q: Is this stablecoin regulated?
A: Yes. The issuance will comply with Hong Kong’s newly established regulatory framework for stablecoins, including licensing requirements and regular audits to ensure full reserve backing.
Q: How is this different from other digital currencies like CBDCs?
A: Unlike central bank digital currencies (CBDCs), which are issued by governments, this is a privately issued stablecoin. However, it operates within strict regulatory guidelines and is fully backed by HKD reserves.
Q: What are the potential use cases?
A: Key applications include faster and cheaper cross-border payments, integration into mobile wallets, remittances, e-commerce transactions, and participation in decentralized finance (DeFi) platforms.
Q: When will the stablecoin launch?
A: While an official launch date hasn’t been announced yet, the project is progressing through the HKMA’s stablecoin issuer sandbox program, with pilot tests expected in late 2025.
Conclusion
Hong Kong’s latest step toward launching a regulated, HKD-backed stablecoin represents more than just technological advancement—it’s a strategic declaration of intent. By uniting banking excellence, telecom innovation, and Web3 leadership under a compliant framework, the city is setting a new benchmark for how jurisdictions can responsibly embrace the future of money.
As global interest in digital assets grows, Hong Kong’s model may serve as a blueprint for other financial centers aiming to balance innovation with stability. With strong institutional support and clear regulatory direction, the future of finance in Asia is being written—one blockchain transaction at a time.