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.

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.

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.

Plc announced on Monday its plans to form a joint venture with Animoca Brands and HKT to apply for a license from the Hong Kong Monetary Authority.