Standard Chartered is establishing a joint venture with Web3 business Animoca Brands and telecoms giant HKT as the bank looks for approval to launch a Hong Kong dollar-backed stablecoin in the country.

The three companies are launching the joint venture with the intention of applying for a licence from the Hong Kong Money Authority (HKMA).

Standard Chartered Hong Kong, Animoca Brands, and HKT have already been jointly participating the central bank’s stablecoin issuer sandbox since it was launched in July 2024.

The sandbox explores how stablecoins can play a key role in the development of financial markets and payments by bridging Web3 and traditional finance.

As part of the new joint venture, Animoca Brands will use its network to tap into crypto-native opportunities and explore "innovative use cases" across the Web3 space.

Technology, media and telecoms company HKT will use its mobile wallet expertise to facilitate the development of stablecoin use cases with an aim to improve both domestic and cross-border payments.

Group managing director of HKT Susanna Hui said that issuing a Hong Kong dollar-backed stablecoin will enhance payment efficiency, streamline transactions, and provide greater security and transparency through advanced Web3 innovations.

“Digital assets are here to stay and the development of different forms of tokenised money is integral to the advancement of this industry,” added Bill Winters, group chief executive, Standard Chartered. “That is why we are actively involved in various Central Bank Digital Currencies, tokenised deposits and, of course, stablecoins projects."

The chief exec went on to say that Standard Chartered's "bank-grade infrastructure", governance, and global reach mean its in a good position to contribute to the development of the stablecoin ecosystem in Hong Kong and other regions.

Mary Huen, the bank's chief executive for the Hong Kong and Greater China & North Asia market, said that it is aiming to launch a stablecoin that can be used across a wide range of use cases.

"Stablecoins are one of the best proven and most widely recognised use cases for Web3, and we are still in the early stages for mass adoption of stablecoins across retail, enterprises and institutions," said Evan Auyang, group president of Animoca Brands. "This opportunity to become one of the first to issue a fiat-backed stablecoin under the HKMA’s licensing regime reinforces our conviction that Hong Kong has a bright future as a global Web3 hub, leading the charge to grow the industry in a safe and compliant manner.”

Last week Standard Chartered announced it is helping China Asset Management (Hong Kong) (ChinaAMC (HK)) launch the first tokenised retail money market fund in Asia Pacific by the end of February.

The Hong Kong branch of London-headquartered bank will be the asset management firm's digital asset service provider, with Standard Chartered Trustee (Hong Kong) acting as the open-ended fund company custodian for the fund.

ChinaAMC (HK) is one of the first mainland Chinese fund management companies licensed to conduct asset management business in Hong Kong.

The move will see the company use Libeara, an incubated tokenisation platform from SC Ventures, Standard Chartered's FinTech investment and start-up arm.

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