Standard Chartered hopes to launch a stablecoin pegged to the Hong Kong dollar, applying for a licence to do so as part of a joint venture with two other firms.
The company has filed an application for a license from the Hong Kong Monetary Authority (HKMA) along with blockchain firm Animoca Brands and Hong Kong Telecom (HKT).
Launching a HK$ stablecoin would be the culmination of Standard Chartered’s long-running efforts in the city. The American bank has been working with its two partners in the area as part of the HKMA’s stablecion issuer sandbox since July 2024.
The trio have been examining how stablecoins can play a role in developing financial markets and payments by bridging traditional finance with Web3 tech. The JV now believes it is positioned to be one of the first stablecoin issuers in Hong Kong.
Bill Winters, Group Chief Executive, Standard Chartered, said: “Digital assets are here to stay and the development of different forms of tokenised money is integral to the advancement of this industry.
“That is why we are actively involved in various Central Bank Digital Currencies, tokenised deposits and, of course, stablecoins projects. We are introducing solutions and instruments that service this market and meet the growing client demand.
“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.”
Launching a HK$ stablecoin would give Standard Chartered a boost in the global stablecoin development race, with Hong Kong standing as one of the world’s leading financial markets while the region is also moving to better regulate stablecoins with a new bill launched late last year.
An area of contention could be China’s attitude towards stablecoins, however. Stalbecoins are illegal in mainland China, and the country has been exerting more control over Hong Kong, one of its autonomous regions.
Mary Huen, CEO, Hong Kong and Greater China & North Asia, Standard Chartered, added: “As a participant of the HKMA’s stablecoin issuer sandbox, 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.
“We are dedicated to staying at the forefront in driving fintech innovation alongside the regulators, partners and clients, further consolidating the role of Hong Kong as an international financial centre.”
