Hong Kong telecom partnership forms stablecoin joint venture with StanChart and Animoca
Standard Chartered, HKT, and Animoca Brands Form Joint Venture to Apply for Stablecoin License in Hong Kong
In a significant move towards the development of Hong Kong's digital asset ecosystem, Standard Chartered Bank Hong Kong, Hong Kong Telecom (HKT), and web3 firm Animoca Brands have come together to form a stablecoin joint venture named Anchorpoint Financial. The venture aims to apply for a stablecoin license from the Hong Kong Monetary Authority (HKMA) following the region's stablecoin legislation that came into force on August 1, 2022.
Mary Huen, Standard Chartered's CEO in Hong Kong and Greater China & North Asia, expressed the bank's aim to bring an innovative, efficient, and secure medium of exchange to Hong Kong. The bank believes that stablecoins will play a significant role in building a sustainable digital asset ecosystem in the region, and intends to facilitate transaction convenience and broaden the usage of digital assets.
The stablecoin initiative by Anchorpoint Financial is part of the HKMA's stablecoin sandbox, which currently has only three participants. The initial stablecoin Anti-Money Laundering (AML) rules in Hong Kong require all stablecoin holders to be identified, not just those who interact directly with the issuer.
The HKMA CEO, Eddie Yue, has indicated that only a few stablecoin licenses will be granted initially, likely in early 2023. Interested parties are encouraged to contact the HKMA by email ([email protected]) by August 31, 2022, to receive regulatory guidance and feedback. Those ready to apply are encouraged to submit their licensing application by September 30, 2022, to be considered early.
The legislation establishes a formal licensing regime regulating the issuance, offering, and marketing of stablecoins to protect financial stability, enhance investor protection, and foster innovation. Only HKMA-licensed issuers, SFC-licensed virtual asset trading platforms, certain licensed corporations, and Authorized Institutions may offer these stablecoins legally.
The HKMA reminds applicants to exercise caution in public communication to avoid false claims of licensing, which is an offense under the ordinance. As of late July 2022, no stablecoin license had been issued yet. The HKMA maintains a public register of licensed stablecoin issuers to help maintain transparency.
Standard Chartered is dedicated to playing a role in supporting Hong Kong as an international financial centre and digital assets hub. The bank's commitment to this initiative aligns with HKMA's vision of fostering a conducive environment for the development of digital assets in the region.
[1] Hong Kong Monetary Authority
[2] Standard Chartered
[3] Hong Kong Telecom
[4] Animoca Brands
[5] Official Journal of the Hong Kong Special Administrative Region
- The stablecoin joint venture, Anchorpoint Financial, formed by Standard Chartered, HKT, and Animoca Brands, plans to apply for a license from the Hong Kong Monetary Authority (HKMA), following the region's stablecoin legislation announced on August 1, 2022.
- The HKMA encourages interested parties to contact them for regulatory guidance and feedback on stablecoin licensing by August 31, 2022, and to submit applications by September 30, 2022, to be considered early.
- The legislation regulating stablecoins in Hong Kong aims to protect financial stability, enhance investor protection, and foster innovation, while only licensed issuers by the HKMA, SFC-licensed virtual asset trading platforms, certain licensed corporations, and Authorized Institutions may offer these stablecoins legally.
- Geared towards building a sustainable digital asset ecosystem, Standard Chartered, through its CEO in Hong Kong and Greater China & North Asia, Mary Huen, expresses their intention to bring an efficient and secure medium of exchange to Hong Kong, using stablecoins as a key asset in this endeavor.
