January 15, 2026
By Our Correspondent
Despite rising global enthusiasm for asset-backed digital currencies, Hong Kong is in no hurry to embrace gold-backed stablecoins. Policymakers have signalled that there are currently no plans to promote or issue stablecoins linked to physical gold, underscoring a characteristically cautious effort to balance financial innovation with systemic stability.
The stance may disappoint crypto firms that had hoped to launch gold-pegged tokens as part of Hong Kong’s expanding Web3 ecosystem. Over the past year, several companies have explored commodity-backed digital assets, encouraged by the city’s broader push to position itself as a regional hub for virtual assets.
Yet regulators have drawn a clear boundary. At a seminar hosted last year by the Association of Fund Administrators of Hong Kong and the Greater Bay Area—attended by the Securities and Futures Commission (SFC)—officials reiterated their wariness of privately issued digital currencies. That caution was echoed when mainland-linked technology groups such as Ant Group and JD.com quietly shelved stablecoin ambitions in Hong Kong, reportedly following guidance from Beijing.
This restraint sits alongside an otherwise energetic embrace of crypto. Over the past two years, Hong Kong has rolled out policy statements, pilot schemes and licensing regimes aimed at fostering blockchain development and regulating virtual-asset trading platforms. The approach has been to encourage innovation while keeping a tight grip on riskier corners of the market.
Stablecoins illustrate this balancing act. Regulatory proposals to date have focused narrowly on fiat-backed tokens, leaving out commodity-linked instruments such as gold. Officials argue that this limitation offers greater legal clarity and simplifies oversight. Gold-backed tokens, by contrast, raise thornier questions around custody of physical assets, valuation and redemption rights—areas regulators appear reluctant to tackle prematurely.
The industry’s interest, however, has not waned. Professional investors in Hong Kong can already access tokenised gold products, including Tether Gold (XAUt), via select institutional platforms. Separately, the government has announced measures to strengthen the city’s physical gold trading and settlement infrastructure, signalling that bullion still has a role in Hong Kong’s financial future—just not yet on the blockchain.
