A joint venture is formed by Standard Chartered to create stablecoins in Hong Kong.

Days after Hong Kong’s stablecoin laws went into force, Standard Chartered, opens new tab, said on Friday that it has established a joint venture with key partners to seek for a license to issue stablecoins in the city.

Crypto traders frequently utilize stablecoins, a kind of cryptocurrency that is intended to keep its value steady, to transfer money across tokens. These coins are typically based on fiat currencies like the US dollar.

According to a statement from the lender, Anchorpoint Financial, a joint venture between the Hong Kong branch of Standard Chartered, the blockchain gaming developer Animoca Brands, and the telecom company HKT (6823.HK), has formally expressed interest in applying for the license to the Hong Kong Monetary Authority (HKMA).

In order to give future stablecoin issuers regulatory certainty, Hong Kong approved a law in May creating a licensing scheme for fiat-referenced stablecoin issuers. On August 1, the legislature became operative. In a media briefing late last month, the HKMA stated that it anticipated issuing the first set of stablecoin issuer licenses in the early months of the next year.