Hong Kong banks rocked by crisis letter and bad bank talks while stablecoin rollout exposes deeper liquidity fractures
Hong Kong’s banking system just entered high alert. What began as a coordinated stablecoin rollout is now unraveling into something more serious. On July 22, internal communication circulated among Hong Kong’s monetary authorities warned of acute stress across token-backed reserves and real-time settlement chains. The letter outlined scenarios where liquidity could evaporate if collateralized redemption …