Today a joint venture was announced to issue a new stablecoin collateralized in Hong Kong dollars (HKD).
The joint venture includes Standard Chartered Bank, Animoca Brands, and HKT, and will apply to the Hong Kong Monetary Authority (HKMA) for a license to issue a new stablecoin in HKD.
These three entities have jointly participated in the sandbox for stablecoin issuers of HKMA launched in July 2024, therefore the joint venture is already positioned to be among the first issuers to pioneer this market in the region.
The stablecoin in Hong Kong
Despite Hong Kong technically belonging to China, it still has its own currency.
The Hong Kong dollar, HKD or HK$, was launched in 1895 by the British colonists, and it is still in use today.
Its current market value is just above $0.128, and in fact, over time it merely oscillates between $0.127 and $0.129. Essentially, it has an almost fixed exchange rate against the US dollar, while it fluctuates a bit more compared to the Chinese yuan.
Since Hong Kong returned to being part of China, its exchange rate first fell to 0.88 yuan, and then began a long period of fluctuation between 0.78 and 0.94 yuan.
The stablecoin of Standard Chartered Bank, Animoca Brands and HKT does not exist yet.
On the crypto markets, however, there are already stablecoins theoretically pegged to the Hong Kong dollar, but none have been licensed by the HKMA, so they are only tokens tradable on decentralized exchanges. Even on Hong Kong exchanges, only stablecoins in US dollars or directly Hong Kong dollars are used.
This means that, in fact, there is a lack of a secure HKD-collateralized stablecoin that can be used on centralized exchanges. Instead, there are stablecoin in Chinese yuan, or tokens that can only be traded on DEXs claiming to be stablecoin in HKD.
Hong Kong: the joint venture that will give life to the new stablecoin
Standard Chartered
Standard Chartered now has experience in collaborating with stablecoin issuers globally.
It is an international banking group headquartered in London, and present in Hong Kong with its subsidiary Standard Chartered Hong Kong.
Standard Chartered PLC is listed on both the London Stock Exchange and the Hong Kong Stock Exchange.
Its presence in Hong Kong dates back to 1859, and it is currently one of the three note-issuing banks of Hong Kong SAR.
Participated in all the HKMA’s tokenized currency projects in recent years.
Its Group Chief Executive, Bill Winters, stated:
“Digital assets are here to stay, and the development of various forms of tokenized money is an integral part of the progress in this sector. That’s why we are actively involved in various central bank digital currency projects, tokenized deposits, and, of course, stablecoins. We are introducing solutions and tools that serve this market and meet the growing demand from clients. As public chain instruments with proven use cases, stablecoins play a fundamental role in the overall digital asset ecosystem. The banking-grade infrastructure, governance, and global reach of Standard Chartered mean that we are well-positioned to materially contribute to the development of the ecosystem being built in Hong Kong and around the world”.
Animoca Brands
Animoca Brands operates in the Web3 sector and is based in Hong Kong.
His role within the project on the stablecoin in HKD will be to leverage crypto-native opportunities and explore innovative use cases in the Web3 ecosystem that promote long-term growth.
It has been included in the list of the 50 best Blockchain gaming companies of 2025, and in the Fortune Crypto 40. Additionally, it is one of the high-growth Asia-Pacific companies of the Financial Times of 2023.
Develops and publishes a wide portfolio of products and content in the sectors of gaming, education, entertainment, and more, through multiple subsidiaries like The Sandbox. Additionally, it has invested in Yuga Labs, Axie Infinity, Polygon, Consensys, Magic Eden, Fireblocks, OpenSea, Dapper Labs, and Yield Guild Games.
Its Group President, Evan Auyang, stated:
“As the main player in the Web3 ecosystem based in Hong Kong, Animoca Brands is absolutely thrilled to collaborate with SCBHK and HKT in this joint venture. Stablecoins are one of the most proven and widely recognized use cases for Web3, and we are still in the early stages of mass adoption of stablecoins among retail, businesses, and institutions. This opportunity to become one of the first to issue a fiat-backed stablecoin under the HKMA licensing regime strengthens our belief that Hong Kong has a bright future as a global Web3 hub, leading the charge to grow the sector in a safe and compliant manner”.
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HKT
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HKT deals with technology, media, and telecommunications.
He will leverage his expertise with mobile wallets to develop innovative use cases with the stablecoin, aiming to improve domestic and cross-border payments and provide greater benefits to both consumers and merchants.
It has over 150 years of history in Hong Kong and is the 5G connectivity provider of the city.
Its Group Managing Director, Susanna Hui, stated:
“HKT is committed to leveraging technology to support our dynamic ecosystem of consumers and merchants, helping merchants navigate the ever-evolving retail landscape. We believe that the issuance of a stablecoin pegged to HKD will enhance payment efficiency, simplify transactions, and provide greater security and transparency through advanced Web3 innovations, ultimately benefiting the broader retail sector. As a leading provider of technology solutions, we are pleased to join forces with our partners, strengthening Hong Kong’s activities and reinforcing its status as a leading innovation hub”.