TL;DR
- Standard Chartered’s CEO believes Hong Kong’s digital assets could reshape international trade settlement.
- The focus is on two specific pilots: tokenized deposits and a Hong Kong dollar-backed stablecoin.
- Hong Kong’s regulator will now allow crypto exchanges to connect to global liquidity pools.
The Chief Executive of Standard Chartered Bank has outlined a specific role for Hong Kong’s developing digital assets. Bill Winters stated that pilots for tokenized deposits and a Hong Kong dollar stablecoin could form a foundation for a new phase of international trade settlement. He delivered these remarks at the Hong Kong FinTech Week event.
“Having innovations like the tokenization of deposits being led in Hong Kong, the establishment of Hong Kong dollar stable coins … becomes a really interesting currency of exchange, or medium of exchange for international trade.”
Winters explained that such digital forms of money could act as a medium of exchange for cross-border commerce. He suggested these tools will help smooth the transition to fully digital international trading. His comments refer to ongoing work within the city’s regulatory framework.
“pilots in digital assets … as mechanisms for trade globally … will smooth the evolution into the new international trading order on wholly digital terms.”
In a separate announcement, the Securities and Futures Commission introduced new rules for licensed crypto exchanges. The regulator will now permit platforms to access global liquidity through shared order books. This change is part of the SFC’s broader strategy for digital assets.
The regulatory update aims to narrow price differences and improve market efficiency
However, the SFC also noted that this access introduces higher operational and settlement risks. Platforms must maintain pre-funded accounts and specific settlement procedures. They are also required to hold compensation reserves for client asset protection.
Standard Chartered’s Hong Kong unit is part of a group that applied for a stablecoin license. This group is one of five entities participating in a regulatory sandbox run by the Hong Kong Monetary Authority. The city continues to build its structure for digital finance.
