Unregulated Stablecoins Emerge in Hong Kong Ahead of Licensed Launch

The central banking authority of Hong Kong has cautioned that deceitful digital tokens are taking advantage of the city's forthcoming stablecoin framework, even before the introduction of the first authorized product. The Hong Kong Monetary Authority stated that tokens labeled 'HKDAP' and 'HSBC' are being traded, although they have no affiliation with any licensed issuer. Both applicants for stablecoin licenses referenced in related media releases have confirmed that they have not launched any regulated stablecoins. Earlier this month, the HKMA granted 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 mirrors the existing monetary framework of Hong Kong, where a limited number of commercial banks are authorized to issue banknotes. The HKMA has advised the public to be cautious of fraudulent activities and to rely solely on official communications from licensees, as well as to conduct transactions through regulated channels. According to insiders, a launch is anticipated to take place during Hong Kong's fintech week in November.