Hong Kong issued its first licenses for fiat-backed stablecoins on Friday,
marking a significant development in the city's efforts to establish regulated digital currencies in global finance and trade.
The Hong Kong Monetary Authority approved HSBC and a Standard Chartered joint venture to issue stablecoins backed by the Hong Kong dollar as part of the city's new stablecoin regulatory framework, which took effect in August 2025.
Stablecoins are a type of cryptocurrency designed to maintain a constant value and are typically pegged to a fiat currency such as the US dollar.