The Hong Kong subsidiary of main financial institution Standard Chartered has partnered with Web3 software program firm Animoca Brands to develop a Hong Kong-dollar stablecoin.
According to a Friday announcement from Animoca Brands, the 2 firms collectively established Anchorpoint Financial Limited in Hong Kong to use for a neighborhood stablecoin issuer license. The shared subsidiary will likely be tasked with constructing a enterprise mannequin targeted on issuing and advancing licensed stablecoins.
Per the announcement, Anchorpoint Financial already indicated formal curiosity in acquiring a stablecoin license with the Hong Kong Monetary Authority on Aug. 1. This adopted the regulator’s implementation of its new stablecoin framework via a six-month transition interval with particular guidelines.
The guidelines had been extra stringent than many market contributors seemingly anticipated, resulting in a major sell-off within the shares of related native firms. According to early August experiences, some Hong Kong stablecoin-concept firm shares fell as a lot as 20%, however consultants described the occasion as a wholesome correction following a actuality examine.
Related: Asia’s OSL Group raises $300M for stablecoin and world enlargement
A partnership lengthy within the works
The partnership between Standard Chartered and Animoca Brands shouldn’t be a brand new one. They first introduced their plans to launch a Hong Kong dollar-backed stablecoin again in mid-February.
Still, the collaboration between the businesses extends past that. In late July 2024, a coalition comprising Standard Chartered Bank, Animoca Brands and Hong Kong Telecommunications was reported to be taking part within the Hong Kong Monetary Authority’s stablecoin issuer sandbox.
Standard Chartered’s involvement in a Hong Kong dollar-backed stablecoin is especially notable. The financial institution is considered one of three entities — alongside HSBC and Bank of China (Hong Kong) — approved to problem the town’s fiat forex underneath the HKMA’s oversight.
Related: Hong Kong prepares third batch of tokenized bonds, eyes extra choices
The race for a Hong Kong stablecoin
The race to dominate the Hong Kong stablecoin market has intensified additional as newfound regulatory readability has propelled the trade to the next degree of maturity. At the top of July, China-based e-commerce large JD.com reportedly registered entities tied to a possible stablecoin rollout, simply days forward of Hong Kong’s stablecoin laws taking impact.
In early July, Ant International, a Singapore-based unit of the Jack Ma-backed Ant Group, was reportedly planning to apply for stablecoin issuer licenses in each Hong Kong and Singapore. These initiatives had been preceded by Jingdong Coinlink Technology Hong Kong Limited, a subsidiary of JD Technology Group, saying its plans to problem a 1:1 stablecoin linked to the Hong Kong greenback in late July 2024.
Magazine: Hong Kong hoses down stablecoin frenzy, Pokémon on Solana: Asia Express
