Bill Winters, CEO of Standard Chartered, said at Hong Kong FinTech Week 2025 that “virtually all global financial transactions will, in due course, settle on blockchain technology.” The institution is already participating in the regulator’s trial and launched in February 2025 a joint venture with HKT and Animoca Brands to issue an HKD-backed stablecoin, moves that affect banks, payment operators and compliance teams. Inclusion in the sandbox and the HKD-backed joint project drive a strategy that fits with the new Stablecoins Ordinance.
Standard Chartered is part of the ecosystem that will test stablecoin operations within the regulator’s sandbox, launched in July 2024. The institution is also expanding its institutional offering in digital assets: in July 2025 it reported spot trading of Bitcoin and Ether for institutional clients, and its innovation arm is considering a $250 million fund for digital assets planned for September 2025.
In February 2025 the alliance with HKT and Animoca Brands established a route to issue an HKD-pegged token that seeks to reduce frictions in cross-border payments.
The regulatory environment has advanced rapidly: the Stablecoins Ordinance was approved on 21 May 2025 and is set to come into force on 1 August 2025; it establishes a licensing regime for fiat-referenced stablecoins with capital requirements, full reserve backing, segregation of client assets, redemption guarantees and AML/CFT controls. According to the regulator, more than 40 entities have shown interest, although fewer than 10 licenses are expected in the first batch in early 2026.
Implications for Standard Chartered and stablecoins
The adoption of an HKD stablecoin poses direct effects on liquidity and costs: issuance and use in cross-border settlements can shorten times, reduce intermediation and mitigate exchange rate risk, according to the efficiency argument put forward by the bank itself.
For compliance and regulators it represents an operational challenge: reserve and AML/CFT requirements seek to minimize systemic risks, but they also raise entry barriers and compliance costs.
For product and investment teams, coexistence with existing digital currencies requires coordination of custody, on/off ramp channels and asset governance.
The next verified milestone is the coming into force of the Stablecoins Ordinance on 1 August 2025 and the regulator’s expectation to issue the first round of licenses in early 2026; the practical implementation in wallets, custody and shared orders will determine the real pace of adoption.
