Standard Chartered Bank (Hong Kong) Limited, A nimoca Brands, and HKT entered a joint venture with the intention of applying for a license from the Hong Kong Monetary Authority.
The License is projected to be used to launch a Hong Kong Dollar Backed Stablecoin geared towards competing in the fledgling global stablecoin market.
The Three brands are suited to make the venture work by bringing on board their distinct capacities and extensive networks in various sectors of the industry.
Standard Chartered Bank in recent years has been heavily involved with stablecoin issuers in the past and would be bringing its Bank Grade infrastructure and experienced governance on board.
Bill Winters, Group Chief Executive, Standard Chartered reacted to the Joint Venture acknowledging the importance of Digital assets in the Global Finance space.
“Digital assets are here to stay and the development of different forms of tokenized money is integral to the advancement of this industry. That is why we are actively involved in various Central Bank Digital Currencies, tokenized deposits, and, of course, stablecoins projects. Winters said.
Animoca Brand, a Hong Kong-based Web 3 giant will utilise its industry expertise and extensive network in the Web3 space to open up crypto native opportunities necessary for the Joint Venture’s success.
Evan Auyang, Group President, Animoca Brands reacted to the announcement of the joint venture explaining the utility of stablecoins and its role in the Web 3 space.
“As the leading Web3 ecosystem player headquartered in Hong Kong, Animoca Brands is absolutely thrilled to collaborate with SCBHK and HKT on this joint venture. Stablecoins are one of the best-proven and most widely recognized use cases for Web3, and we are still in the early stages of mass adoption of stablecoins across retail, enterprises, and institutions. Evan stated.
HKT, a technology, media, and telecommunication is the last piece in the puzzle bringing mobile wallet expertise to enable the joint venture to develop innovative stablecoin use cases.
Stablecoins are crypto assets whose value is pegged to that of a currency or asset on a 1:1 ratio. Stablecoins were created to solve the challenge of volatility in the crypto space.
Tether USDT and Circle USDC are the two leading stablecoin issuers in the industry. Competition from new arrivals like Paypal’s PYUSD and Ripple’s RLUSD gives the global community alternative options to navigate hiccups caused by compliance in various jurisdictions.
