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 (HKMA) for issuance of a Hong Kong dollar-backed stablecoin.

READ MORE: HK eyes stablecoin regulatory regime by end of 2024

Standard Chartered said it has entered agreements with Animoca Brands, a company which specializes in Web3 for leveraging blockchains, and HKT, a major telecommunications service provider in Hong Kong, in order to "enable the JV to tap into crypto-native opportunities" and "enhance both domestic and cross-border payments", according to its statement.

StanChart said it looks forward to becoming one of the first issuers launching an HKD-backed stablecoin with its strategic partners, according to Mary Huen, Chief Executive Officer of the bank's Hong Kong and Greater China & North Asia division.