<div id="readability-page-1">HSBC, the largest lender in Europe and Hong Kong by assets, has signalled for the first time its intent to engage with the city’s forthcoming stablecoin regime, citing Hong Kong’s sound regulatory environment and its potential to drive innovation in the digital asset space. “We are interested in every part of Hong Kong’s innovation landscape, and we want to play a role in all of it,” CEO Georges Elhedery said in a small-group interview – in response to a question whether the bank had applied for a stablecoin issuer licence – on Thursday, a day after it posted better-than-expected results for 2025. The Hong Kong Monetary Authority (HKMA) is expected to issue the first batch of stablecoin issuer licences in March, a key milestone in the city’s push to establish itself as a hub for digital asset trading. Stablecoins, which are cryptocurrencies pegged to assets like the US dollar, are used to settle payments in financial transactions. Elhedery declined to confirm whether the lender had submitted an application, but indicated that discussions with the regulator were ongoing. “We want to invest in people and technology in Hong Kong because we remain strong believers in the growth opportunities here. We have been in active discussions [with regulators],” he said. Sources in the cryptocurrency industry suggested HSBC was one of the applicants or was forming an alliance with other firms for the forthcoming licences, underscoring its commitment to playing a central role in the city’s evolving financial ecosystem.  HSBC would only be involved in stablecoins if there was appropriate regulation – like in Hong Kong – but would not be involved in markets where there was no regulation, Elhedery said. “Hong Kong has developed a comprehensive and safe regulatory environment. [Developments that are] compliant in Hong Kong will be things we look at very seriously,” he said. Hong Kong has in recent years sought to build on its reputation as a financial hub by opening the door to new instruments such as cryptocurrencies and stablecoins. The HKMA introduced a stablecoin regulatory framework in August, designed to regulate issuers in a manner similar to banks. Separately, the city’s market watchdog, the Securities and Futures Commission, has introduced a licensing regime for virtual asset trading platforms, granting licences to 12 operators. “Given the prudent regulatory framework for digital assets in Hong Kong, it really allows HSBC to be front and centre to explore new technology to serve in the financial system,” said David Liao Yi-chien, co-CEO for Asia and the Middle East at HSBC. “Tokenised deposits are part of the ecosystem we are obviously leading in. We also participate in the tokenised bond issuance for the Hong Kong government, as well as exploring stablecoins and other technologies that help better serve the financial system,” Liao said in the same interview.  HSBC has launched tokenised deposits in Hong Kong, Luxembourg, London and Singapore, and may launch in the US, the United Arab Emirates and other markets this year, Elhedery said. In recent years, the lender has also introduced tokenisation of gold products in Hong Kong. Tokenisation is the process of converting the ownership rights of real-world assets, such as real estate, stocks, deposits or gold, into a digital token on a blockchain. “We like the tokenisation technology. It gives frictionless, instantaneous, 24/7 payments with an auditable trail,” Elhedery said, adding that the lender’s blockchain technology had supported the government’s issuance of HK$10 billion in tokenised green bonds in November. The CEO has been streamlining HSBC’s structure since last year, saving US$1.2 billion to date. The target of US$1.5 billion in savings is expected to be reached by midyear, six months ahead of schedule. But Elhedery also said the bank continued to invest in talent. This year it will give global staff an average pay rise of 3 per cent. HSBC completed its US$14 billion buyout of subsidiary Hang Seng Bank in January, which is expected to deliver US$900 million in benefits to HSBC, with restructuring costs of US$600 million over the next three years. Elhedery said HSBC would allocate a significant portion of the restructuring costs to retraining Hang Seng staff. “There are areas where we can create alignment,” he said. “Some roles need to evolve as we align the areas of HSBC and Hang Seng. We will make sure that those people are able to evolve as well in terms of career opportunities across HSBC and Hang Seng.” Elhedery said both banks would remain competitors in the market, but there may be greater product cross-selling between the two. He added that there was no plan to dispose of Hang Seng’s assets or businesses. “Everything Hang Seng is doing today … we like and appreciate,” he said. The lender would use artificial intelligence to enhance staff efficiency and productivity, but the CEO said this would not result in lay-offs. “We can redeploy people from those jobs that disappear because of AI into jobs that are more future-aligned, where we can generate or create more growth opportunities and generate even more value for our customers,” Elhedery said. Separately, Liao said he supported the Hong Kong government’s budget and considered it sensible to use part of the Exchange Fund to finance the Northern Metropolis. “We believe that capital investments into the future, such as the Northern Metropolis and innovation, are the right direction forward for Hong Kong,” Liao said.</div>

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<p>HSBC has expressed its intent to engage with Hong Kong's upcoming stablecoin regime, highlighting the city's regulatory environment as a catalyst for innovation in digital assets. CEO Georges Elhedery mentioned ongoing discussions with regulators and the bank's commitment to invest in technology and talent in Hong Kong. The Hong Kong Monetary Authority plans to issue stablecoin licenses in March, marking a significant step in the city's digital asset strategy. HSBC is also involved in tokenisation projects and aims to streamline operations while investing in staff development.</p>

- HSBC, the largest lender in Europe and Hong Kong, is exploring participation in Hong Kong's upcoming stablecoin regime, viewing the city's regulatory environment as conducive to innovation.  
- The Hong Kong Monetary Authority plans to issue stablecoin licenses in March, aiming to establish the city as a digital asset trading hub, with HSBC indicating ongoing discussions with regulators about potential applications.  
- HSBC remains committed to investing in technology and talent in Hong Kong while leveraging tokenization for diverse financial products, asserting that it will only engage in regulated markets.

HSBC signals intent to join Hong Kong’s stablecoin regime amid digital hub push