HSBC has shied away from confirming that it would apply for a Hong Kong stablecoin issuer licence, while commending the city for setting up regulations that emphasise safety and compliance, the South China Morning Post reported.
Participation by the largest bank in Hong Kong in the stablecoin market would be a significant traditional finance validation for the new regime, which aims to issue a limited number of licences for the fiat-pegged tokens this month. Established in the 19th century to promote business between Asia and Europe, HSBC has around 25% of market share in the territory, with more than 6mn retail customers.
