Key Notes

Key Notes:

Standard Chartered, Animoca Brands, and HKT joined forces to launch a Hong Kong dollar-backed stablecoin under HKMA’s new regulatory framework.Standard Chartered’s CEO, Bill Winters, emphasizes stablecoins’ long-term role in finance, aligning with Hong Kong’s digital asset vision.The stablecoin market reached $225 billion, with Ripple, Robinhood, and Kraken competing, highlighting growing demand for regulated digital money.

Standard Chartered Bank Hong Kong (SCBHK), Animoca Brands, and HKT are teaming up to create a new Hong Kong dollar-backed stablecoin. The joint venture plans to apply for a license under the Hong Kong Monetary Authority’s (HKMA) fresh regulatory framework, paving the way for a fully compliant stablecoin.

Standard Chartered applies extensive knowledge of stablecoins, drawing from multiple tokenized money initiatives. The bank intends to utilize its robust infrastructure to guarantee high security and governance standards for the new HKD-backed digital asset. SCBHK considers the initiative a pivotal move in shaping Hong Kong’s digital asset landscape.

Animoca Brands, a prominent entity in the Web3 ecosystem, contributes expertise in crypto-native ventures. The company seeks to integrate stablecoins into emerging applications within Web3, ensuring alignment with the broader vision of digital finance.

HKT plans to harness mobile wallet capabilities to create innovative applications for the stablecoin. The initiative focuses on streamlining cross-border transactions and enhancing payment efficiency for businesses and consumers. HKT’s strong digital payments experience is expected to be a key advantage in rolling out the stablecoin for everyday use.

Bill Winters, Group Chief Executive of Standard Chartered, highlighted the significance of this advancement by stressing the permanence of digital assets. He pointed out that various forms of tokenized money play a crucial role in the financial sector’s progress.

“Digital assets are here to stay and the development of different forms of tokenized money is integral to the advancement of this industry,” said Winters.

The race to dominate the stablecoin market is heating up. Ripple introduced its RLUSD stablecoin on December 17, entering a growing field of players aiming to offer secure and regulated digital money. Similarly, in early November 2024, a consortium that includes Robinhood, Kraken, and Galaxy Digital launched a USD-pegged stablecoin.

The stablecoin sector has seen explosive growth, with the total market capitalization reaching $225 billion. According to a report from CryptoQuant, stablecoins have increased by $37 billion since the US presidential election on November 5, 2024. Analysts attribute this rise to increased liquidity from Tether’s USDT USDT $1.00 24h volatility: 0.1% Market cap: $142.50 B Vol. 24h: $37.41 B , though Circle’s USDC USDC $1.00 24h volatility: 0.0% Market cap: $57.09 B Vol. 24h: $3.76 B is also gaining ground.

SCBHK, Animoca Brands, and HKT have already been testing the waters in HKMA’s stablecoin sandbox since July 2024. This initiative is part of Hong Kong’s broader ambition to merge traditional finance with Web3, reinforcing its status as a digital asset powerhouse.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.

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