Animoca Brands Launches Stablecoin Licensing in HK

Animoca Brands has announced that its joint venture in Hong Kong with Standard Chartered and Hong Kong Telecommunications (HKT) is pursuing a stablecoin license. The entity, Anchorpoint Financial Limited, expressed formal interest to the local regulator on August 1, as per the application guidelines available on the regulator's website. A representative from Animoca Brands confirmed to The Block that this expression of interest marks the initial phase of the stablecoin licensing journey. Evan Auyang, the group president of Animoca Brands, stated, "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 crucial in reinforcing Hong Kong’s position as a leading international financial center." The Stablecoins Ordinance in Hong Kong took effect on August 1, which requires issuers of fiat-backed stablecoins to secure licensing from the Hong Kong Monetary Authority (HKMA). This application for a stablecoin issuer license aligns with their previously announced plans to explore the issuance of a HKD-backed stablecoin. In March 2024, the HKMA introduced a regulatory sandbox to test stablecoins, with all three companies participating starting from July. Moving forward, Anchorpoint Financial intends to investigate the role of stablecoins in enhancing financial market growth and facilitating payments that connect Web3 with traditional finance.