Hong Kong Grants Two Stablecoin Issuer Licenses, Regulated Tokens Expected in Second Half

Hong Kong has issued stablecoin issuer licenses to two institutions with banking backgrounds, and the regulated stablecoins they issue are expected to be launched gradually from mid-year to the second half of the year. According to Foresight News, Secretary for Financial Services and the Treasury Christopher Hui said in a written reply to the Legislative Council that the Hong Kong Monetary Authority granted the licenses in April this year. Hui said licensed issuers must place reserve assets in Hong Kong banks and invest them in eligible assets such as bank deposits and high-quality, highly liquid bonds. He added that the Hong Kong government and the Securities and Futures Commission plan to submit a bill to the Legislative Council within the year to establish a more comprehensive regulatory framework covering virtual asset trading, custody, advisory, and management services.