Standard Chartered Plc , said on Monday its Hong Kong banking division, Animoca Brands and HKT will establish a joint venture to apply for a license from the Hong Kong Monetary Authority for issuance of a Hong Kong dollar-backed stablecoin.

The partnership aims to enhance the reserve management of StraitsX’s stablecoins. Standard Chartered Bank has been appointed as a trusted banking partner for StraitsX, a Singapore-licensed stablecoin issuer and digital payment infrastructure provider.

Global banking giant Standard Chartered is teaming up with blockchain gaming and digital assets venture firm Animoca Brands on a significant blockchain-related venture. Per a press release, the collaboration also involves local telecom giant HKT and will see the three partners eye a new stablecoin pegged on the Hong Kong Dollar.

Standard Chartered has signed a deal with Animoca Brands and HKT to launch HKD-Backed Stablecoin in Hong Kong. Takeaway Points Standard Chartered has signed a deal with Animoca Brands and HKT to launch HKD-Backed Stablecoin.

Research from Standard Chartered reveals stablecoins process US$425bn monthly as traditional payment systems fail to meet cost and speed targets

Animoca Brands, and HKT have agreed to form a joint venture (JV). This is so that they can apply for a license from the Hong Kong Monetary Authority (HKMA) under the new regulatory regime(1) to create a stablecoin backed by the Hong Kong dollar.

Stablecoins are digital assets that maintain a fixed value relative to a government-issued fiat currency or other reference rate.