HSBC weighs non-Hong Kong dollar stablecoins, targets HK dollar token launch in H2

HSBC is assessing non-Hong Kong dollar stablecoins to make cross-border transfers more efficient in Hong Kong and other regions, while also considering links to other regulated stablecoins in Hong Kong. Vincent Gu, HSBC Global Head of Custody Product, previously said the bank aims to launch a Hong Kong dollar stablecoin as early as the second half of the year and integrate it into the bank’s app across investment and payment flows. Hong Kong Monetary Authority Chief Executive Eddie Yue had said HSBC was expected to launch a stablecoin in the third to fourth quarter, while RD InnoTech was expected to launch around mid-year with trial use starting in a few weeks. Hong Kong Financial Services and the Treasury Bureau Secretary Christopher Hui has now said two licensed stablecoin issuers must complete platform and system testing and implement controls covering reserve asset management, asset security, price stability, redemption and cybersecurity before launch. Based on their business plans, Hong Kong’s regulated stablecoins are expected to debut around mid-2025, while the HKMA is also engaging other applicants under a unified, strict review standard. The plans underscore how banks and fintech firms in Hong Kong are positioning regulated stablecoins as payment rails and settlement tools for digital asset activity, even as final launches remain subject to regulatory readiness requirements.