UK FCA to Set Standards for Stablecoin Issuers; HSBC and UBS Expand into Tokenization and Crypto Space; Hong Kong Considers Allowing Wealthy Clients to Trade Crypto ETFs and Creating Digital-Asset Hub

The U.K.'s Financial Conduct Authority plans to set high standards for stablecoin issuers. HSBC and UBS are venturing deeper into the tokenization and crypto space, with HSBC launching a platform for tokenizing physical gold and UBS allowing wealthy clients in Hong Kong to trade crypto-linked ETFs. Hong Kong is considering allowing trading of spot crypto ETFs and assessing the possibility of creating a digital-asset hub. Cathay Securities has obtained regulatory approval to launch Taiwan’s first Security Token Offering business. The move towards tokenization and crypto ETFs is driven by increasing demand from asset managers and the pursuit of creating a global hub for digital assets. The U.S. regulator is continuing to pursue crypto entities despite court setbacks, while the U.K. is setting out a rigorous regulatory framework for cryptocurrencies, facing challenges in becoming a global hub.