Hong Kong Issues First Stablecoin Licenses to HSBC and Standard Chartered

Starting August 1, new regulations have come into effect in Hong Kong, requiring stablecoin issuers to verify the identity of every holder of their tokens by enforcing Know Your Customer (KYC) procedures.

The Hong Kong Monetary Authority (HKMA), which serves as the de facto central bank of the Special Administrative Region, has finalized its regulatory framework for stablecoin issuers.

Japan’s three largest banking groups, among the country’s leading financial institutions, are working on a joint stablecoin project to develop blockchain-based payment systems. According to Reuters, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group plan to issue a joint stablecoin by March 2027.

The sUSDat stablecoin lost its dollar peg, falling by 7% to $0.93 on Wednesday, 3 June, according to blockchain analysts at PeckShield. On Thursday, the decline became even deeper: for a short time, the stablecoin dropped to $0.90.

Global payment giants Visa, Mastercard, and Stripe are reportedly exploring the creation of a unified stablecoin platform. The largest U.S. crypto exchange, Coinbase, is expected to play a key role in the initiative, according to sources cited by CoinDesk.