The post Hong Kong To Launch New Stablecoin As Standard Chartered, Animoca Brands, HKT Join Hand appeared first on Coinpedia Fintech News
Hong Kong is taking a big step toward launching its stablecoin, and some major companies are leading the way. Standard Chartered, Animoca Brands, and HKT have teamed up to apply for a license to issue a stablecoin backed by the Hong Kong dollar (HKD). If approved, this could be a game-changer for Hong Kong’s digital finance sector.
Trio to launch HKD stablecoin
The trio’s decision to enter the stablecoin market is significant. Unlike most countries where central banks issue currency, Hong Kong’s system is different. HSBC, Bank of China (Hong Kong), and Standard Chartered issue HKD under the supervision of the Hong Kong Monetary Authority (HKMA).
With Standard Chartered involved, this new stablecoin project is gaining serious attention. The partnership brings together key players from different industries.
Standard Chartered is a global bank with strong experience in finance. Animoca Brands is a leader in blockchain technology and digital assets. HKT specializes in mobile payments. Together, they plan to explore how a stablecoin can be used for payments within Hong Kong and even for transactions across borders.
Hong Kong’s Plan for Stablecoin Regulations
Hong Kong is working on a new law to regulate stablecoins. In December 2024, lawmakers introduced a bill that would require stablecoin issuers to get a license from the HKMA. This law aims to ensure that stablecoins are backed by reserves and remain stable in value.
The three companies have already been testing their stablecoin ideas in Hong Kong’s “sandbox” program since July 2024.
Other companies, like Jingdong Coinlink Technology and RD InnoTech, are also working on their own Hong Kong dollar-backed stablecoins.
Hong Kong’s Growing Crypto Market
Hong Kong has been making big moves in the crypto space. The city has already approved Bitcoin and Ethereum exchange-traded funds (ETFs) and introduced strict rules for crypto exchanges.
With Standard Chartered and its partners now entering the stablecoin space, Hong Kong’s crypto market is heating up. If their plan gets approved, the city could soon have its first regulated HKD-backed stablecoin, bringing new opportunities for digital payments.
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