Standard Chartered Bank's Hong Kong subsidiary is collaborating with Web3 software company Animoca Brands to develop a stablecoin pegged to the Hong Kong dollar.
According to a statement from Animoca Brands on Friday, the two companies have established a joint venture, Anchorpoint Financial Limited, in Hong Kong to apply for a local stablecoin issuer license. The company will focus on issuing and promoting compliant stablecoins.
Anchorpoint Financial expressed its intention to apply for a stablecoin license to the Hong Kong Monetary Authority on August 1. Subsequently, the Hong Kong regulator implemented a new stablecoin framework, including a six-month transition period.
The new regulations are stricter than the market expected, leading to significant fluctuations in the stock prices of related companies. According to earlier reports, some stocks of Hong Kong stablecoin concept companies fell by 20%, but experts believe this is a healthy adjustment.
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The partnership has a long history
This collaboration is not the first; back in February, the two companies announced plans to launch a stablecoin pegged to the Hong Kong dollar.
In addition, Standard Chartered Bank, Animoca Brands, and Hong Kong Telecommunications participated in the Hong Kong Monetary Authority's stablecoin issuer sandbox trial at the end of July.
Standard Chartered's involvement in the Hong Kong dollar stablecoin project is particularly noteworthy, as it is one of the few institutions authorized to issue fiat currency in Hong Kong.
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Hong Kong stablecoin competition
With the clarification of regulations, competition in the Hong Kong stablecoin market is becoming increasingly fierce. By mid-year, Chinese e-commerce giant JD had registered a potential stablecoin issuing entity. Meanwhile, Ant International, supported by Jack Ma, is applying for stablecoin issuance licenses in Hong Kong and Singapore.
JD's technology subsidiary plans to launch a stablecoin pegged 1:1 to the Hong Kong dollar in July 2024.
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