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Gold Backed Stablecoins Wait as Hong Kong Holds to Fiat-Only Rules

source-logo  financemagnates.com 2 h
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Hong Kong has signaled that it is not moving quickly toward gold-backed stablecoins, despite growing global interest in asset-backed digital currencies. Recent reports indicate regulators have no current plans to introduce or support stablecoins linked to physical gold, reflecting a cautious approach as the city balances innovation with financial stability.

The new stance may affect crypto firms that had hoped to launch gold-backed tokens in Hong Kong. Several companies have been exploring commodity-backed digital assets as part of the city’s expanding Web3 ecosystem.

SFC Seminar Highlights Digital Asset Compliance

Last year, the Securities and Futures Commission participated in a seminar organised by the Association of Fund Administrators of Hong Kong and the Greater Bay Area, focusing on regulatory compliance in the digital asset sector.

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At the same time, Chinese technology groups, including Ant Group and JD.com, paused stablecoin plans in Hong Kong following guidance reportedly issued by mainland authorities, highlighting the cautious approach to privately issued digital currencies.

Fiat-Backed Stablecoins Focused Regulatory Approach

Over the past two years, Hong Kong has positioned itself as a regional crypto hub. Authorities have introduced licensing regimes for virtual asset trading platforms and promoted blockchain development through policy statements and pilot projects.

⚡ INSIGHT: Hong Kong hints that the city isn’t entertaining gold-backed stablecoins yet. South Korea’s STO pioneer risks closure.

Asia Express via Cointelegraph Magazine pic.twitter.com/bGeUNID7si

— Cointelegraph (@Cointelegraph) January 13, 2026

At the same time, regulators have maintained tight control over higher-risk segments of the market. Earlier proposals focused on a regulatory framework for fiat-backed stablecoins, which did not include commodity-backed tokens such as those linked to gold.

Limiting the framework to fiat-backed stablecoins allows regulators to prioritize clarity and risk management, while commodity-backed tokens raise additional considerations, including custody of physical assets, valuation, and redemption rights.

Hong Kong Expands Gold Trading Infrastructure

Industry interest in tokenised gold products remains. Some institutional trading platforms in Hong Kong already offer gold-pegged tokens, including Tether Gold (XAUt), to professional investors.

Separately, the city has outlined plans to strengthen its physical gold trading and settlement infrastructure as part of broader financial market development. Legal analyses note that the current stablecoin framework focuses on fiat-referenced tokens and does not cover commodity-linked stablecoins, which would require future regulatory expansion or clarification.

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