Animoca Brands and Standard Chartered took the first step toward stablecoin for Hong Kong

Animoca Brands and Standard Chartered took the first step in launching a stablecoin for the Hong Kong market. The partnership tests the new stablecoin legislation taking force from August 1. 

Animoca Brands and Standard Chartered took the first step in the process of launching a stablecoin for the Hong Kong market. The partners, which announced their intentions in February, as Cryptopolitan reported, now have to comply with the region’s new legislation on stablecoins, taking force from August 1. 

‘Stablecoins represent one of the most compelling use cases within Web3, and we believe we are still at the early frontier of widespread adoption across institutions and retail alike. As assets continue to move on-chain, the HKMA-regulated fiat-referenced stablecoin is important in reinforcing Hong Kong’s position as a leading international financial center,’ said Evan Auyang, group president of Animoca Brands.

The Hong Kong Stablecoin Ordinance outlines a process to launch a stablecoin, opening the gateways for new pools of liquidity. The new licensing regime aims to track stablecoins and their issuers, to avoid impinging on the general financial system. 

The process for Animoca Brands is still in its early stages, starting with a statement of formal interest before the Hong Kong Monetary Authority. Unlike other crypto entities, Animoca Brands focuses on the Asia Pacific region and does not seek the EU stablecoin license or US-based Genius Bill compliance. 

Animoca Brands supports global stablecoin transfers

Animoca Brands has shifted its focus from its previous funding activity and Web3 projects, seeing the potential of stablecoins. The Web3 fund still sits on significant ETH reserves, which can be used to generate liquidity. 

Animoca Brands itself uses USDT and USDC for its day-to-day activities and general transfers. The startup is active in trading and provides liquidity to other protocols.

Over the years, Animoca Brand has raised more than $825M, reinvesting a part in new startups, games, NFT collections, AI and most of the latest crypto trends. Stablecoins are also trending, with signs of mainstream searches and general uses for both fully regulated and still grey-area assets. 

Animoca Brands has not announced the type of planned stablecoin. In most highly regulated environments, stablecoins rely on fiat bank reserves or partial backing by bonds. The fund also pointed out the benefits of stablecoins as an alternative to global remittances. 

“Global money that moves with speed and stability.” 💰🪙

Stablecoins are quietly revolutionizing how money moves across the globe. Imagine sending a digital dollar as seamlessly as a WhatsApp message—no bank hours, no wire delays, no sky-high fees. 👇 pic.twitter.com/znocm7VXB0

— Animoca Brands (@animocabrands) August 8, 2025

Standard Chartered has also accumulated experience with stablecoins and tokenization through its Libeara platform on Ethereum. The L1 chain remains the main venue for stablecoin issuers and transfers, with the biggest open liquidity market. 

Are Hong Kong’s stablecoin rules too strict?

Animoca Brands has spoken of the stablecoin market as a free-for-all. However, the Hong Kong Stablecoin Ordinance remains extremely strict for both issuers and end users. 

All stablecoin issuers must also comply with KYC and other customer identification rules, potentially limiting stablecoin adoption. Currently, the most widely used stablecoin for payments is USDC, especially in its TRON version.

Despite the strict regulations, Hong Kong has stated its intentions of becoming a crypto hub, testing out new tools to regulate and track usage. Stablecoins have grown significantly, at over $250B in total supply, sparking fears their activity may start undermining the effect of central banks and fiat usage. 

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