HSBC Holdings (00005) has announced plans to formally issue a stablecoin in Hong Kong in the second half of this year. The announcement follows the recent granting of one of Hong Kong’s first stablecoin licenses to HSBC by the Hong Kong Monetary Authority. At the HSBC Global Investment Summit, Group Chief Executive Noel Quinn highlighted that Hong Kong’s regulatory framework provides banks with confidence to act as stablecoin issuers, particularly in areas such as financial crime compliance and prudent risk management—a key differentiator compared with other regulatory jurisdictions.

Quinn referenced internal group surveys indicating that 90% of respondents believe digital finance will see widespread adoption in the coming years. However, half of those surveyed also expressed unfamiliarity with digital financial services. He urged colleagues to proactively engage with clients to explain opportunities, options, and risks, emphasizing that as digital finance is already here, the industry must work to boost familiarity and confidence in a trustworthy manner.

HSBC has already begun collaborating with multiple clients in Hong Kong and globally on digital banking services. The bank operates a market-leading digital bond issuance platform designed specifically for native digital bonds, having issued more than $350 million in bonds to date, including sustainable bonds for the Hong Kong government. Additionally, the UK government has selected HSBC to pilot technology for the issuance of digital government bonds.

Quinn also noted that HSBC has introduced tokenized gold products in Hong Kong and is expanding this model regionally and internationally. The bank has also launched tokenized deposit services for wholesale clients, enabling 24/7 instant and seamless cross-border transactions across key markets including Hong Kong, Singapore, the UK, Luxembourg, the US, and the UAE.