The global financial landscape is rapidly evolving with the rise of digital assets, and stablecoins have emerged as a critical bridge between traditional finance and the decentralized web. Hong Kong, in particular, has been actively fostering a supportive environment for stablecoin development, positioning itself as a key hub for Web3 innovation in Asia.
Leading this charge is Animoca Brands, a Hong Kong-born Web3 unicorn that has expanded from its gaming roots into artificial intelligence (AI), decentralized infrastructure (DePIN), and comprehensive Web3 consulting services. The group’s president, Evan Auyang, recently highlighted the pivotal role stablecoins play in attracting traditional enterprises to explore and enter the Web3 space.
Why Stablecoins Are the Ideal Entry Point for Businesses
For many corporations, the world of cryptocurrencies and blockchain can seem complex and volatile. Stablecoins, which are digital currencies pegged to stable assets like the US dollar or other fiat currencies, offer a familiar and less risky starting point.
They function as essential on-ramps, allowing businesses to convert their traditional currency into a digital format that can be used within the crypto ecosystem. This is crucial for activities like paying for blockchain-based services, participating in decentralized finance (DeFi), or facilitating seamless, cross-border transactions.
Auyang emphasized that enterprises are particularly drawn to the tokenization of real-world assets (RWA), where physical assets like real estate or commodities are represented as digital tokens on a blockchain. Stablecoins serve as the foundational infrastructure that makes this possible, enabling faster settlement, 24/7 operation, lower fees, and the automated execution of terms via smart contracts.
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Animoca Brands' Growth and Strategic Focus
The company’s strategic pivot towards providing digital asset advisory (DAA) and publishing services has fueled significant growth. In the past year, Animoca Brands reported a total business order value of $314 million, a 12% increase year-over-year. Its DAA segment alone saw a dramatic 116% surge, reaching $165 million.
This growth is a direct result of assisting other Web3 companies and traditional enterprises in launching their on-chain projects. By offering consultancy on everything from token design to regulatory compliance, Animoca Brands has positioned itself as a key enabler in the industry.
A Commitment to the Hong Kong Market
Auyang confirmed the group’s strong interest in a potential public listing in Hong Kong, aligning its growth trajectory with the city's ambitions to become a leading digital asset hub. This sentiment underscores the confidence major players have in Hong Kong’s regulatory framework.
Animoca Brands is not just an observer but an active participant. It collaborated with Standard Chartered Hong Kong and HKT to join the Hong Kong Monetary Authority’s (HKMA) stablecoin “sandbox” initiative. This pilot program allows companies to test their stablecoin issuances in a controlled environment under the regulator’s supervision.
Navigating a Competitive Landscape
The current stablecoin market is dominated by giants like USDT, which is heavily used for crypto-native trading, and USDC, which is often favored for payment solutions. Auyang noted that while global players like Circle (the issuer of USDC) may not seek licensing in every jurisdiction, Animoca Brands aims to be a major participant in the Greater China region.
Its strategy is not to compete directly as a stablecoin issuer for general use but to focus on the specific opportunities presented by RWA tokenization for institutional clients in the area. The group has no plans to venture into operating a cryptocurrency exchange, instead choosing to deepen its expertise in advisory and infrastructure roles.
The first batch of stablecoin licenses in Hong Kong is anticipated within the year. Auyang predicts that the differentiation between issuers will hinge on the specific types of transaction flows they choose to specialize in.
Future Outlook: Sustained Growth and disciplined expansion
Looking ahead, Animoca Brands is optimistic about continuing its growth momentum in the coming year. The company plans to maintain a disciplined approach to cost control, ensuring that revenue growth is matched with operational efficiency to expand profit margins.
Its investment strategy, which operates like a venture capital (VC) model, focuses on emerging fields like AI and InfoFi (Information Finance). It often invests in early-stage projects, even those in incubation, and earns success fees upon their achievement of milestones. Auyang pointed out that outright failures are rare; many projects remain in a "not-yet-successful" phase with significant long-term potential.
This approach allows Animoca Brands to nurture innovation while managing risk, contributing to a vibrant and sustainable Web3 ecosystem.
Frequently Asked Questions
What is a stablecoin?
A stablecoin is a type of cryptocurrency designed to have a stable value, typically by being pegged to a reserve asset like a fiat currency (e.g., the US dollar) or a commodity. This stability makes it suitable for transactions and as a gateway into the crypto world.
Why are businesses interested in Web3 and stablecoins?
Businesses are attracted to Web3 for its efficiency, transparency, and new economic models. Stablecoins provide a low-volatility entry point for them to conduct transactions, explore asset tokenization, and engage with decentralized applications without immediate exposure to crypto market volatility.
What is Real World Asset (RWA) tokenization?
RWA tokenization is the process of converting rights to a physical asset—such as real estate, art, or commodities—into a digital token on a blockchain. This enables fractional ownership, easier transferability, and automated compliance through smart contracts.
How is Hong Kong regulating stablecoins?
Hong Kong’s monetary authority is developing a regulatory framework for stablecoin issuers, including a sandbox program for testing. The goal is to ensure investor protection and financial stability while encouraging innovation, with the first licenses expected to be issued soon.
What role does Animoca Brands play in Web3?
Animoca Brands acts as a catalyst and advisor in the Web3 space. It provides consulting services to help companies launch blockchain projects, invests in promising startups, and develops infrastructure, particularly focusing on gaming, AI, and the digitalization of assets.
What is the benefit of a company like Animoca Brands listing in Hong Kong?
A local listing would strengthen Hong Kong’s position as a Web3 hub and demonstrate market confidence. For Animoca Brands, it would provide access to capital, increase its public profile, and align its operations closely with a supportive regulatory environment. 👉 Learn more about blockchain investment strategies