Hong Kong opened applications for stablecoin issuers at the start of August, with 77 firms applying during the month. The Hong Kong Monetary Authority (HKMA) has repeatedly stated it only plans to license a handful of companies in the first instance. With its initial rules requiring the identity of every stablecoin user, this may favor banks or those companies that already have strong compliance frameworks and an existing customer base.
Earlier this month Standard Chartered confirmed it created a stablecoin joint venture, Anchorpoint Financial, with Hong Kong Telecom (HKT) and web3 firm Animoca Brands. The consortium submitted its application on 1 August.
Local press reports stated that Bank of China Hong Kong (BOCHK) has also applied, citing “market sources”. BOCHK alongside Standard Chartered and HSBC have the authority to print banknotes in Hong Kong. That level of trust could make them easier for the regulator to approve. BOCHK has also recently taken part in eHKD trials for a central bank digital currency. However, the Standard Chartered consortium has already participated in the stablecoin sandbox, the only bank to do so.
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