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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Feb 17, 2025 13:02 UTC
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Hong Kong to Launch First HKD Stablecoin as Standard Chartered & Allies Join Hands
tandard Chartered, Animoca Brands, and HKT seek approval for a Hong Kong-backed stablecoin.
Unlike other countries, Hong Kong’s HKD issuance involves private banks under HKMA supervision.
A new law in 2024 requires stablecoin issuers to obtain an official license.
Hong Kong is moving closer to launching its own stablecoin, with some of its biggest companies leading the way. Standard Chartered, Animoca Brands, and HKT have applied for a license to issue a stablecoin backed by the Hong Kong dollar (HKD). If approved, this could be a major breakthrough for Hong Kong’s digital finance sector.
How Hong Kong’s Currency System Works
Unlike most countries, where central banks issue money, Hong Kong follows a different system. The Hong Kong dollar is issued by three major banks—HSBC, Bank of China (Hong Kong), and Standard Chartered—under the supervision of the Hong Kong Monetary Authority (HKMA). With Standard Chartered now looking to issue a stablecoin, this project is drawing significant attention.
A Strong Partnership for Stablecoin Development
This collaboration brings together expertise from different industries:
- Standard Chartered, a global bank with deep financial knowledge.
- Animoca Brands, a leader in blockchain technology and digital assets.
- HKT, a major player in mobile payments.
Together, they aim to explore how a stablecoin could be used for payments within Hong Kong and even for cross-border transactions.
Hong Kong’s New Stablecoin Regulations
To support stablecoin development, Hong Kong is introducing new regulations. In December 2024, lawmakers proposed a bill requiring all stablecoin issuers to obtain a license from the HKMA. The goal is to ensure these digital currencies are backed by reserves and remain stable in value, preventing risks seen in unregulated projects.
Standard Chartered and its partners have been testing their stablecoin ideas through Hong Kong’s “sandbox” program since July 2024. They aren’t the only ones—other companies, such as Jingdong Coinlink Technology and RD InnoTech, are also developing HKD-backed stablecoins.
Hong Kong’s Expanding Role in Crypto
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. Now, with Standard Chartered and its partners entering the stablecoin sector, the market is set to grow even further.
If their plan gets approved, Hong Kong could soon have its first licensed HKD-backed stablecoin—opening new doors for digital payments and strengthening its position as a global financial hub.
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