Standard Chartered has been named among the participants in the Hong Kong Monetary Authority (HKMA) stablecoin issuer sandbox.
As a participant, Standard Chartered will issue stablecoins in Hong Kong to test operational plans, following permission from the HKMA.
This participation also facilitates two-way communication on the proposed regulatory requirements, aiming to formulate a fit-for-purpose and risk-based regulatory regime.
Other institutions named by the HKMA include JINGDONG Coinlink Technology Hong Kong Limited, RD InnoTech Limited, Animoca Brands Limited and Hong Kong Telecommunications (HKT) Limited.
The HKMA stated that these institutions were chosen because they demonstrated genuine interest in developing a stablecoin issuance business in Hong Kong, presented reasonable business plans and proposed operations under the sandbox arrangement that would be conducted within a limited scope and in a risk-controllable manner.
During participation, these institutions will not handle the general public’s funds at the initial stage, nor will they solicit funding from the public or offer any products associated with the sandbox.
The HKMA advises the public to stay vigilant against potential scams related to the sandbox and will make a separate announcement if sandbox participants are allowed to handle the public’s funds in the future.
Yesterday (17 July), the HKMA released the consultation conclusions on the legislative proposal to establish a regulatory framework for fiat-referenced stablecoin (FRS) issuers in Hong Kong.
Speaking on the consultations, Eddie Yue, Chief Executive of the HKMA, commented: “We are grateful for the respondents’ valuable comments and are encouraged by the general support for the proposed regulatory regime.
“We believe that a well-regulated environment is conducive to the sustainable and responsible development of the stablecoin ecosystem in Hong Kong.”
Standard Chartered has played a pivotal role in testing tokenization in Hong Kong. Earlier this year, the bank announced it is working alongside Mastercard and other partners to develop use cases on the benefits of tokenized deposits.