Standard Chartered Participates in Joint Venture to Issue Hong Kong Dollar-Backed Stablecoin

Core Viewpoint - Standard Chartered Bank Hong Kong, Animoca Brands, and HKT are forming a joint venture to issue a stablecoin backed by the Hong Kong dollar, pending the enactment of the Stablecoins Bill and obtaining a license from the Hong Kong Monetary Authority (HKMA) [1][2]. Group 1: Joint Venture Details - The joint venture aims to leverage Standard Chartered's banking infrastructure, Animoca Brands' Web3 expertise, and HKT's mobile wallet capabilities to create a stablecoin [2][3]. - The stablecoin is intended to enhance domestic and cross-border payments for both consumers and merchants [3]. Group 2: Regulatory Context - The HKMA's stablecoin bill is currently under review, which will require issuers to obtain a license and adhere to reserve and price stability requirements [2]. - The joint venture has been participating in an HKMA stablecoin issuer sandbox since July to explore the role of stablecoins in financial markets and payments [3]. Group 3: Strategic Goals - The CEO of Standard Chartered emphasized the goal of launching a secure stablecoin for various use cases, reinforcing Hong Kong's position as an international finance center [4]. - Standard Chartered is also involved in a separate pilot project, the Canton Network, which investigates a privacy-enabled open blockchain network for real-time settlement [4]. Group 4: Related Initiatives - The HKMA has initiated the second phase of testing for its e-HKD Pilot, involving 11 groups exploring tokenized assets and offline payments [5].