Animoca Brands and Standard Chartered have taken the first step in launching a stablecoin for the Hong Kong market, adhering to new laws governing stablecoins.
Partnership for Stablecoin Launch
Animoca Brands and Standard Chartered announced their intentions to launch a stablecoin for Hong Kong, following the new legislation effective August 1. The companies started the process with a formal statement of interest to the Hong Kong Monetary Authority. Animoca Brands believes that stablecoins represent one of the most compelling use cases within Web3.
Benefits and Challenges of Stablecoins
Animoca Brands is focusing on using stable currencies for global transfers, but has not announced the type of stablecoin planned. In highly regulated environments, stablecoins typically rely on fiat bank reserves or partial backing by bonds. The company also highlighted that stablecoins can save on high fees for international remittances.
Hong Kong's Stablecoin Policy
Hong Kong's stablecoin regulations impose strict requirements on both issuers and end users, including mandatory KYC and customer identification. Despite this, the Hong Kong authorities aim to become a crypto hub, testing new tools to regulate and track the use of stablecoins.
The launch of the stablecoin by Animoca Brands and Standard Chartered in Hong Kong symbolizes a step towards integrating crypto technologies into the traditional financial system, despite the contradictory regulatory requirements.
