Standard Chartered becomes first bank to distribute Hong Kong dollar stablecoin
Standard Chartered has become the first bank to distribute a Hong Kong dollar-backed stablecoin, HKDAP, to institutional clients. The bank plans to expand the stablecoin's use cases to include cross-border payments and asset management settlements.
Why it matters
This marks a significant step in the integration of traditional banking with blockchain-based digital assets for institutional financial services.
The London-based bank said it will initially help its eligible institutional clients and partners to integrate the Hong Kong dollar stablecoin issued by Anchorpoint Financial (HDAKP), of which it is a majority shareholder, in an emailed announcement on Monday
Standard Chartered also said it has plans to roll-out a number of new HKDAP commercial applications over the coming month. Use cases include market fund subscriptions, settlement with asset managers, intragroup settlement across the bank’s global network and cross-border payments, Standard Chartered said.
Anchorpoint Financial began a limited rollout of HKDAP on Aug. 12 , four months after securing one of the city’s first two issuer licences. The initial rollout will focus on institutional payments and settlement before adding more access channels and cross-border applications.
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