JP Morgan: HSBC Holdings (00005) and Standard Chartered (02888) will integrate stablecoins into their payment ecosystems.

JPMorgan released a research report stating that the Hong Kong Monetary Authority has announced that it will issue stablecoin issuer licenses to HSBC HOLDINGS (00005) and STANCHART (02888) joint ventures. The bank views this as a positive development, helping to alleviate concerns in the market about the Hong Kong SAR government possibly delaying the development of digital assets. JP Morgan pointed out that as HSBC and Standard Chartered are both note-issuing banks in Hong Kong, it is expected that the two stablecoin issuers will closely cooperate with the Hong Kong Monetary Authority to minimize the potential disruptions that stablecoin circulation may cause to the existing financial system. At the company level, the bank expects HSBC and Standard Chartered to integrate stablecoins into their respective payment ecosystems. In comparison, Standard Chartered's layout in the digital asset business is more comprehensive, hence it may have more application scenarios than HSBC. The bank does not expect stablecoin business to bring significant revenue contributions to the two banks in the short to medium term, but it should help boost trading sentiment for the stocks of HSBC and Standard Chartered.