Standard Chartered, Animoca Brands, and HKT have partnered to launch Hong Kong dollar-backed stablecoin, bringing Hong Kong digital assets to a new level.
The collaborative project will apply to the Hong Kong Monetary Authority (HKMA) under the new framework. The coming together of each company’s respective areas of excellence will ensure an efficient means of exchange for institutions or individuals.
The joint venture between each company leverages the other partners’ strengths. Standard Chartered brings bank-level infrastructure and governance expertise from its global stablecoin activities.
While Animoca Brands contributes to web3 innovation through its extensive network, and HKT enhances payment systems with mobile wallet technology.
Together, they strive to improve domestic and cross-border transactions in Hong Kong’s regulatory environment.
Economic Potential: Key Objectives and Benefits
The key objective of this stablecoin is to improve payment efficacy and safety through innovative web3 technology. It aims to simplify domestic and cross-border transactions while benefiting individuals and businesses.
With tokenization, it can unlock assets such as residential real estate, adding up to 0.5% of GDP annually to Hong Kong’s economy within ten years.
Not only this, but it is also part of Hong Kong’s vision of making itself a global digital assets hub while ensuring compliance within the framework of the HKMA.
Stablecoins also make transactions and investments within Belt and Road (BRI) locations simpler by avoiding dependence on foreign currencies.
Strategic Importance for Hong Kong
Hong Kong’s contribution to the stablecoin initiative is its function as a global hub of digital assets. The alliance of Standard Chartered, Animoca Brands, and HKT supports Hong Kong’s regulatory framework.
This collaboration ensures clear guidance to stablecoin issuers without undermining financial stability or protecting its customers.
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