Why did FGA Trust expand its custody services?

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FGA Trust Expanded Custody Services in Response to Hong Kong's Stablecoin Ordinance

FGA Trust has broadened its custody services to accommodate future licensed stablecoin issuers in Hong Kong. This strategic expansion directly addresses the requirements of Hong Kong's Stablecoin Ordinance, which fully took effect on August 1, 2025, and mandates that issuers securely hold reserves with independent custodians. FGA Trust's enhanced capabilities are designed to provide the necessary infrastructure for segregated client assets, fully backed by high-quality liquid assets, thereby supporting issuers in meeting their regulatory obligations and fostering user confidence.
Meeting Regulatory Mandates for Stablecoin Issuers

The Stablecoin Ordinance, enacted on August 1, 2025, establishes a licensing regime for fiat-referenced stablecoin issuers. A core tenet of this ordinance is the requirement for issuers to maintain stable value through rigorous reserve asset management. This includes the crucial stipulation that these reserves must be held by qualified, independent custodians. FGA Trust's expansion directly targets this regulatory necessity, ensuring that these vital infrastructure needs for secure, segregated client assets, backed by high-quality liquid assets, are met.
Leveraging Technology for Compliance and Integration

To serve this burgeoning market, FGA Trust is implementing its upgraded AI-driven platform. This technology suite facilitates automated Know Your Customer (KYC) onboarding processes and integrates advanced on-chain Anti-Money Laundering (AML) compliance. This sophisticated approach creates a secure link between traditional finance (TradFi) and the Web3 ecosystem, aligning with the stringent demands of both the Stablecoins Ordinance and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO).
Fostering Trust and Supporting Digital Asset Growth

Kavi Harilela, Director of FGA Trust, highlighted that the expanded custody capabilities are specifically engineered to assist issuers in fulfilling their regulatory duties. Furthermore, these services are intended to build a foundational level of trust among users, which is critical for the widespread adoption of stablecoins. By providing the essential compliance and security infrastructure, FGA Trust aims to facilitate the secure expansion of stablecoins and the broader tokenization of assets within Hong Kong's established regulatory framework.

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Why did FGA Trust expand its custody services?

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