Joint Venture to Launch Hong Kong Dollar-Backed Stablecoin

A new joint venture has been formed between Standard Chartered’s Hong Kong branch, crypto venture firm Animoca Brands, and HKT to issue a Hong Kong dollar-backed stablecoin. This move comes as the region aims to strengthen its position in the digital asset market.

Regulatory Framework and Licensing

The joint venture entity will apply for a license under the Hong Kong Monetary Authority’s updated regulatory framework. Although the exact timeframe for the application has not been disclosed, the move demonstrates the region’s readiness to support the growth of the digital asset market.

Key Partnerships and Expertise

Animoca Brands will contribute its expertise in crypto-native opportunities, enabling the joint venture to explore innovative use cases across the web3. Meanwhile, HKT will leverage its mobile wallet expertise to develop innovative stablecoin use cases.

Industry Insights and Expert Opinions

Bill Winters, Group Chief Executive of Standard Chartered, emphasizes the importance of tokenized money in the advancement of the industry. “That is why we are actively involved in various central bank digital currencies, tokenized deposits and, of course, stablecoins projects,” he notes. Winters also highlights the critical role of stablecoins as “public chain instruments with proven use cases.”

The development of different forms of tokenized money is integral to the advancement of this industry.

Mary Huen, CEO of Standard Chartered’s Hong Kong and Greater China & North Asia, shares the aim of launching a stablecoin that can be used securely by institutions and individuals across a wide number of use cases.

Tips for Beginners: Understanding Stablecoins

If you’re new to the world of cryptocurrencies, here are some key points to understand about stablecoins:

  • Stablecoins are digital assets pegged to the value of a fiat currency, reducing price volatility.
  • They can be used for various purposes, including payments, trading, and lending.
  • Stablecoins can provide a secure and stable store of value in the digital asset market.

Stay up-to-date with the latest news and developments in the world of cryptocurrencies and finance on Global Crypto News.

Post Views: 5