Animoca Brands, Standard Chartered Bank, and HKT Join Forces to Pursue Stablecoin Issuer License in Hong Kong
Animoca Brands has taken a significant step towards bridging the gap between traditional finance and digital assets by forming a joint venture with Standard Chartered Bank (Hong Kong) and HKT to apply for a stablecoin issuer license in Hong Kong. The new entity, Anchorpoint Financial Limited, lodged its application with the Hong Kong Monetary Authority (HKMA) on August 1, the day the city’s Stablecoin Ordinance came into effect.
Aims and Objectives
Evan Auyang, group president of Animoca Brands, stated that the partnership aims to incorporate stablecoins into the mainstream financial ecosystem, thereby bridging the gap between traditional finance and digital assets. This move is expected to facilitate the adoption of stablecoins among institutional and retail users.
Stablecoin Sandbox
The three companies have been participating in the HKMA’s stablecoin sandbox since July 2024, testing various use cases that could support both institutional and retail adoption. The sandbox has enabled them to refine their offerings and ensure compliance with the stringent risk management procedures, fiat reserve requirements, and redemption timelines mandated by the Stablecoin Ordinance.
Regulated Stablecoins in Hong Kong
Hong Kong is pushing for regulated stablecoins, with over 40 businesses, including big banks and tech companies, having applied for licenses. Although only a small percentage of these applications are expected to be approved, the initiative is a significant step towards establishing a robust and regulated stablecoin market in the city.
Competitive Landscape
Other sandbox participants, such as Jingdong Coinlink Technology and RD InnoTech, are also developing Hong Kong dollar–backed stablecoins. However, Animoca Brands’ chairman, Yat Siu, believes that HKD stablecoins offer a unique advantage, being indirectly pegged to the U.S. dollar, as a regulated alternative outside the U.S. market.
Global Perspective
Hong Kong’s framework for regulated stablecoins is similar to initiatives taken in other jurisdictions, such as the EU’s MiCA regulations and the United States’ GENIUS Act. This move is a reflection of Animoca’s strategy of integrating blockchain adoption with compliance-focused financial products, which could hasten the adoption of digital payments and solidify Hong Kong’s position as a major international financial center.
bitpulse Take
As the crypto and traditional finance industries continue to converge, initiatives like Anchorpoint Financial Limited’s stablecoin issuer license application are crucial in driving innovation and adoption. With Hong Kong’s clear regulatory approach and Animoca’s commitment to compliance-focused financial products, the city is poised to become a hub for regulated stablecoins and digital payments.