Animoca Brands dives into the stablecoin world with a joint venture, aiming to launch a HKD-pegged stablecoin amidst evolving regulations.

Animoca Brands' Stablecoin Play: A Hong Kong Joint Venture

Hong Kong-based Animoca Brands is making a bold move into the stablecoin arena. With an eye on the upcoming Stablecoin Ordinance in Hong Kong, the company is strategically positioning itself to potentially become a licensed stablecoin issuer.

The Joint Venture: A Strategic Alliance

Animoca Brands has formed a joint venture with Standard Chartered Bank and Hong Kong Telecom. The goal? To pave the way for Animoca Brands to secure a stablecoin issuer license and build a thriving web3 ecosystem around its native stablecoin.

According to Animoca Brands' Group President, Evan Auyang, this collaboration leverages each partner's strengths. Animoca Brands will focus on developing web3 applications, Standard Chartered Bank will tap into its customer base, and Hong Kong Telecom will reach retail consumers. It’s all about creating a seamless transition from web2 to web3.

HKD-Pegged Stablecoin: A Triple Threat

Animoca Brands envisions its HKD-pegged stablecoin serving three key purposes: facilitating transactions within its gaming and NFT ecosystems, enabling cross-border trade settlements, and promoting the adoption of HKD-backed stablecoins on a global scale. This move could challenge the dominance of U.S. dollar-backed stablecoins.

Hong Kong's Stablecoin Ordinance: A Game Changer

The Hong Kong Special Administrative Region Government is set to implement its Stablecoin Ordinance in August 2025. This new law will allow companies to apply for licenses to issue stablecoins pegged to the Hong Kong dollar. Animoca Brands is clearly preparing to be at the forefront of this regulatory shift.

Meanwhile, Down Under...AUDD on Hedera

While Animoca Brands is making waves in Hong Kong, the Australian dollar-pegged stablecoin (AUDD) launched on the Hedera Network. This marks a significant advancement in digital payments. The AUDD leverages Hedera's secure, scalable, and sustainable infrastructure, offering near-instant transaction finality and incredibly low fees. It is also carbon-negative, which aligns with sustainability and programmable finance.

The Bigger Picture: A Stablecoin Revolution

The moves by Animoca Brands and the launch of AUDD highlight a growing trend: the rise of stablecoins pegged to various national currencies. This trend suggests a shift towards a more diverse and localized stablecoin landscape. The AUDD has also adopted a multichain approach which makes it available on Ethereum, Stellar, XRPL, Solana and XDC networks.

Final Thoughts: Watch This Space

The stablecoin market is heating up, and Animoca Brands' strategic joint venture is one to watch. As regulations evolve and new players enter the scene, the future of digital finance is looking increasingly...well, stable (pun intended!).