Hong Kong now seems to be ready to strengthen its dominance over the wider crypto market with a favorable set of rules for the digital assets category. As per recent data, the regional branch of Standard Chartered, with HKT and Animoca, has announced a joint venture for the issuance of Hong Kong dollar-backed stablecoins.
According to the latest press release of Animoca Brands, the newly formed venture will file its licensing application with the monetary authority obeying the new guidelines. Yet the exact date of filing an application is still unreleased but expected soon.
Market experts argue that Animoca Brands has greater expertise in the Web3 sector, and it is worth noting that its headquarters is based in Hong Kong. Standard Chartered serves millions of users in over 50 nations.
Following the joint partnership for HK-backed dollar stablecoins, Evan Auyang said, “ As the leading Web3 ecosystem player headquartered in Hong Kong, Animoca Brands is absolutely thrilled to collaborate with SCBHK and HKT on this joint venture. Stablecoins are one of the best proven and most widely recognized use cases for Web3, and we are still in the early stages for mass adoption of stablecoins across retail, enterprises, and institutions.”
Hong Kong eyeing big spot in the global market
The available data set points a finger towards the suddenly changing financial markets of Hong Kong, with a change in stance for digital assets and cryptocurrencies. It is largely argued that the launch of stablecoins pegged by HKD will impact HK’s global image, redirecting it towards the spot of leader in digital finance.
There are several other nations that have already launched their stablecoins some of them include Hong Kong’s neighbor China, Singapore, Switzerland, and even India, which has also launched its pilot phase of E- Rupees.
Some primary factors nowadays that are considered drivers of growth and adoption of stablecoins are less recognition of crypto in the country because crypto is the extra advanced version of CBDCs.
According to the data, the regional crypto market of HK is expected to generate $68.8 million in revenue in the ongoing year; currently, roughly 500k people in the region are using cryptocurrencies.
Earlier in January 2025, it was reported by Todayq that the Central Bank of Hong Kong has expressed its eagerness to help banks adopt blockchain technology to meet the changing demand for finance worldwide.
Some major events in the market
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