HSBC, Standard Chartered Granted Stablecoin Issuer Licenses in Hong Kong

Uk Jin

Summary

The Hong Kong Monetary Authority said it had granted stablecoin issuer licenses to Standard Chartered and the Hongkong and Shanghai Banking Corp. (HSBC).
The two banks plan to begin stablecoin issuance businesses in the coming months after completing preparations.
The authority said the approvals are intended to lay the groundwork to foster the stablecoin industry within the regulated financial system.

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The Hong Kong Monetary Authority said on April 10 that it had granted stablecoin issuer licenses to Standard Chartered and the Hongkong and Shanghai Banking Corp., or HSBC, under the Stablecoins Ordinance. The licenses took effect the same day.

The two banks plan to begin stablecoin issuance businesses in the coming months after completing preparations. The authority said the approvals are meant to lay the groundwork for fostering the stablecoin industry within the regulated financial system.

HKMA Chief Executive Eddie Yue called the licensing an important milestone in the development of digital assets in Hong Kong. He said the regulatory framework is intended to balance the use of innovative technology with user protection and risk management.