Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

The Hong Kong Monetary Authority has cautioned that unauthorized tokens are taking advantage of the city's upcoming stablecoin framework, even before the introduction of the first licensed stablecoin. In an official statement, the HKMA revealed that tokens bearing the ‘HKDAP’ and ‘HSBC’ tickers are being traded, but are not affiliated with any approved issuer. The two licensed stablecoin applicants mentioned in related media reports have confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA awarded its inaugural stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025, selecting two groups out of 36 applicants. The selection of HSBC and a Standard Chartered-led entity parallels Hong Kong's existing banking system, where a limited number of commercial banks are authorized to issue banknotes. The HKMA warned the public to be cautious of fraudulent activities, advising them to only rely on official communications from licensed issuers and to conduct transactions through regulated channels. According to insiders, the launch of licensed stablecoins is expected to occur during Hong Kong's fintech week in November.