Animoca, Standard Chartered, HKT seek first Hong Kong stablecoin licence

Hong Kong’s stablecoin market ambitions have accelerated as Animoca Brands, Standard Chartered Bank (Hong Kong) Limited, and HKT formed Anchorpoint Financial Limited to apply for the city’s first stablecoin issuer licence under its newly implemented regulatory regime. The application was submitted to the Hong Kong Monetary Authority (HKMA) on 1 August, coinciding with the enforcement of the Stablecoins Ordinance. This development positions the consortium among the earliest contenders in Asia’s regulated stablecoin sector, a market whose global capitalisation reached $261 billion in July after nearly two years of uninterrupted growth. Strategic move into regulated stablecoins The joint venture builds on the partners’ participation in HKMA’s stablecoin issuer sandbox since July 2024, where they explored use cases linking Web3 platforms with traditional banking. Hong Kong’s licensing framework, one of the first globally, is seen as opening the door to non-USD stablecoins in regional settlement markets, potentially challenging the dollar’s dominance. The ordinance requires issuers of fiat-referenced stablecoins in or outside Hong Kong—if pegged to the Hong Kong dollar—to obtain HKMA licensing. This involves maintaining reserve asset management, segregating client funds, operating price stabilisation mechanisms, honouring redemption requests at par value, and meeting anti-money laundering, risk management, disclosure, and auditing standards. HKMA released detailed supervision guidelines and anti-money laundering procedures on 29 July, with an application feedback deadline of 31 August and full submissions due by 30 September. Misleading licensing claims could lead to criminal penalties. Wider digital asset adoption and funding The stablecoin licensing framework forms part of Hong Kong’s broader push into digital assets. The Securities and Futures Commission (SFC) has licensed 11 virtual asset platforms and is reviewing nine more. Since January 2025, new applicants have benefited from faster, risk-based inspections. The government also plans to make tokenised green bond issuance a regular practice following its 2023 and 2024 offerings. Tokenised products approved for retail investors already include gold tokens and money market funds, with real estate and private equity tokenisation planned. In July, at least 10 publicly listed Hong Kong companies raised over $1.5 billion for blockchain and digital currency ventures. OSL Group led the surge, securing $300 million in under three days through a rapid bookbuilding process completed in three hours, attracting both sovereign wealth and hedge fund investors. SenseTime Group raised HK$2.5 billion to develop blockchain and stablecoin applications, while JF SmartInvest Holdings raised HK$785 million for tokenised real-world asset investments. Market trends and global context A dedicated index tracking stablecoin-related stocks has gained 65% year-to-date, outperforming the Hang Seng Index. However, HKMA has warned of “frothiness” and “excessive exuberance” as investor interest intensifies. Private funding also grew in July, with digital payments startup Kun securing over $50 million. Globally, Tether maintained market leadership with $164 billion in capitalisation, though its dominance eased from 62.5% to 61.8%. USD Coin rose 3.78% to $63.6 billion, while Ethena USDe expanded 43.5% to $7.60 billion. The Tron network now holds over half of all USDT in circulation, reaching $81.9 billion. Regulatory backing for the sector strengthened further when President Trump signed the GENIUS Act on 18 July, creating federal payment stablecoin rules in the US, mandating full reserve backing and monthly disclosure of reserves. Hong Kong’s position in Asia’s stablecoin race The Anchorpoint Financial initiative underscores Hong Kong’s aim to become a central hub for regulated stablecoins in Asia. By combining the reach of Standard Chartered, the telecom infrastructure of HKT, and Animoca’s Web3 expertise, the venture aims to integrate stablecoins into mainstream finance while complying with some of the world’s strictest regulatory requirements. This combination may help Hong Kong compete directly with other Asian financial centres moving towards digital asset regulation. The post Animoca, Standard Chartered, HKT seek first Hong Kong stablecoin licence appeared first on Invezz

Source: Invezz