The Hong Kong subsidiary of major bank Standard Chartered has partnered with Web3 software company Animoca Brands to develop a Hong Kong-dollar stablecoin.

According to a Friday announcement from Animoca Brands, the two companies jointly established Anchorpoint Financial Limited in Hong Kong to apply for a local stablecoin issuer license. The shared subsidiary will be tasked with building a business model focused on issuing and advancing licensed stablecoins.

Per the announcement, Anchorpoint Financial already indicated formal interest in obtaining a stablecoin license with the Hong Kong Monetary Authority on Aug. 1. This followed the regulator’s implementation of its new stablecoin framework through a six-month transition period with special rules.

The rules were more stringent than many market participants seemingly expected, leading to a significant sell-off in the shares of relevant local companies. According to early August reports, some Hong Kong stablecoin-concept company stocks fell as much as 20%, but experts described the event as a healthy correction following a reality check.

Related: Asia’s OSL Group raises $300M for stablecoin and global expansion

A partnership long in the works

The partnership between Standard Chartered and Animoca Brands is not a new one. They first announced their plans to launch a Hong Kong dollar-backed stablecoin back in mid-February.

Still, the collaboration between the companies extends beyond that. In late July 2024, a coalition comprising Standard Chartered Bank, Animoca Brands and Hong Kong Telecommunications was reported to be participating in the Hong Kong Monetary Authority’s stablecoin issuer sandbox.

Standard Chartered’s involvement in a Hong Kong dollar-backed stablecoin is particularly notable. The bank is one of three entities — alongside HSBC and Bank of China (Hong Kong) — authorized to issue the city’s fiat currency under the HKMA’s oversight.

Related: Hong Kong prepares third batch of tokenized bonds, eyes more offerings

The race for a Hong Kong stablecoin

The race to dominate the Hong Kong stablecoin market has intensified further as newfound regulatory clarity has propelled the industry to a higher level of maturity. At the end of July, China-based e-commerce giant JD.com reportedly registered entities tied to a potential stablecoin rollout, just days ahead of Hong Kong’s stablecoin regulations taking effect.

In early July, Ant International, a Singapore-based unit of the Jack Ma-backed Ant Group, was reportedly planning to apply for stablecoin issuer licenses in both Hong Kong and Singapore. These initiatives were preceded by Jingdong Coinlink Technology Hong Kong Limited, a subsidiary of JD Technology Group, announcing its plans to issue a 1:1 stablecoin linked to the Hong Kong dollar in late July 2024.

Magazine: Hong Kong hoses down stablecoin frenzy, Pokémon on Solana: Asia Express