Breaking | – JOBUZO

HSBC and a consortium led by Standard Chartered have been awarded Hong Kong’s first stablecoin issuer licences, marking the city’s latest step towards embracing cryptocurrency’s most-traded cash substitute in its bid to become a global digital asset hub.

“The two applicants have experience in traditional financial and risk management, which fits the mission of stablecoins that aim to bridge traditional finance and digital finance,” said Hong Kong Monetary Authority (HKMA) deputy chief executive Darryl Chan.

Eight months after Hong Kong’s Stablecoin Ordinance, one of the world’s first such laws, took effect, the two issuers were given the green light to conduct business, the HKMA announced on Friday. The authority had revealed that it would only grant a small number of licences after assessing 36 applications.

Both licensees will issue stablecoins that will be pegged to the Hong Kong dollar, and can conduct cross border payments later.

According to the licensees’ business plans, they intend to complete the necessary preparation work and launch business in the coming few months.

The announcement came later than initially expected, with industry players attributing that to a slower-than-expected review process.

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