StanChart HK and Animoca Brands team up to explore HKMA stablecoin sandbox

Standard Chartered Hong Kong, Animoca Brands, and HKT have joined forces to take part in the Hong Kong Monetary Authority (HKMA) stablecoin issuer sandbox that was announced in March this year.  

The HKMA’s stablecoin issuer sandbox is based on a similar concept, according to the HKMA. It enables the HKMA to communicate supervisory expectations and guidance to institutions that plan to issue fiat-referenced stablecoins in Hong Kong.  For the sandbox participants, they can test out the feasibility of their intended business models and communicate with the HKMA directly to understand how to comply with the future regulatory requirements.

The coalition will leverage the institutional digital asset custody capabilities of Zodia Custody, which is partly owned by Standard Chartered. 

The three corporates share a common vision that the digital asset market can grow in a sustainable, transparent, and appropriately risk-managed way in Hong Kong and beyond.  

The collaborative efforts in exploring how stablecoins can play a key role in driving the evolution of financial and payments markets will support Hong Kong’s transformation into a global digital asset hub.  

Standard Chartered Hong Kong is keen to take part in the Sandbox as it looks to best determine how to support the growing digital asset ecosystem in Hong Kong, and to better understand the opportunities and risks that the evolving stablecoin market brings to this ecosystem, according to the release. 

Dominic Maffei, head of digital assets and fintech, Hong Kong, Standard Chartered, said, “Standard Chartered is committed to staying at the forefront of the growing digital asset market and driving fintech innovation in Hong Kong. We believe that regulated financial institutions have a key role to play in the development of these markets.” 

“Under the guidance of the HKMA, we are proud to take part in the Sandbox with innovative industry leaders, Animoca Brands and HKT, to transform the financial sector and create a positive impact for our clients,” Maffei added. 

This initiative also resonates strongly with Animoca Brands’ vision of driving digital asset mass adoption and the application of blockchain-related technology solutions for real-world assets and traditional economies.  

Evan Auyang, group president, Animoca Brands, said, “Animoca Brands is excited to partner with two of the most established and respected companies in Hong Kong to participate in the Sandbox. As a global Web3 ecosystem builder based in Hong Kong, we are excited about the mass adoption of digital assets via stablecoins issued under the HKMA’s proposed stablecoin issuer regime, and we are delighted to explore opportunities and new ways to innovate through the Sandbox.”  

Meanwhile, HKT is determined to explore within the Sandbox how the innovation in stablecoins can support domestic and cross-border payments, bringing greater benefits to consumers and merchants.    

Monita Leung, CEO of digital ventures, HKT, said, “HKT promotes fintech and digital economy through our consumer and merchant payment solutions. We are delighted to explore the immense potential of stablecoins in revolutionising payment systems. By facilitating efficient and seamless payment solutions, it paves the way for digital transformation and Web3 development in Hong Kong.” 

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