Standard Chartered Bank sets up joint venture to issue stablecoins in Hong Kong

Global Market Report

Standard Chartered Bank said on Friday that it has set up a joint venture with its strategic partners to apply for a license to issue stablecoins in Hong Kong. A few days ago, Hong Kong's stablecoin-related legislation has officially come into effect.

Stablecoins are cryptocurrencies designed to maintain stable value, often pegged to fiat currencies such as the US dollar, and are a common tool for cryptocurrency traders to transfer funds between different tokens.

Standard Chartered Bank said in a statement that Anchorpoint Financial, a joint venture between Standard Chartered Bank's Hong Kong branch, blockchain game developer Animoca Brands and telecommunications company HKT, has formally expressed its intention to apply for the license to the Hong Kong Financial Authority (HKMA).

Hong Kong passed a bill in May this year that established a licensing system for fiat-to-peg stablecoin issuers, providing a clear regulatory framework for future stablecoin issuers. The regulation officially came into effect on August 1.

The Hong Kong Monetary Authority said at a media briefing late last month that it is expected that the first batch of stablecoin issuers' licenses will be issued early next year.

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