TLDR
- HSBC and Standard Chartered are expected to receive Hong Kong stablecoin licenses within weeks.
- The Hong Kong Monetary Authority has reviewed 36 applications for permits for fiat-backed stablecoins.
- Regulators may grant the first approvals as early as March 24, according to reports.
- Standard Chartered plans to issue a Hong Kong dollar-pegged stablecoin through a joint venture.
- HSBC did not join the 2024 stablecoin sandbox but remains a leading candidate.
Hong Kong regulators plan to issue initial stablecoin licenses within weeks, according to media reports. HSBC Holdings Plc and a joint venture led by Standard Chartered Plc stand among the leading candidates. Authorities could grant approvals by March 24, though officials may adjust the timetable.
HSBC, Standard Chartered Positioned for First Approvals
Reports from the South China Morning Post and Bloomberg identified HSBC and Standard Chartered as early recipients. The Hong Kong Monetary Authority said it could issue first licenses as early as March. Officials confirmed they received 36 applications from firms seeking stablecoin approval.
HSBC did not join the 2024 stablecoin sandbox led by the regulator. However, Standard Chartered joined the pilot through a joint venture with Animoca Brands and Hong Kong Telecommunications. Standard Chartered previously stated it plans to issue a Hong Kong dollar-pegged stablecoin.
Hong Kong authorities prefer bank-led issuers to support financial stability. Regulators believe banks hold strong capital buffers and operate under strict supervision. Officials aim to grant only a limited number of licenses in the first round.
The Stablecoin Ordinance took effect in 2025 and created the licensing regime. The law requires issuers of fiat-referenced stablecoins to obtain approval from the HKMA. Regulators said approvals will depend on compliance, business models, and real-world use cases.
Industry sources told SCMP that initial tokens will focus on the Hong Kong dollar. Standard Chartered confirmed plans to develop a Hong Kong dollar-backed digital token. HSBC has not publicly detailed its issuance strategy.
Regulatory Framework Shapes Digital Asset Expansion
Hong Kong introduced licensing rules for crypto exchanges in 2022 to strengthen oversight. Authorities later launched a stablecoin sandbox to test issuer proposals. Participants included Jingdong Coinlink Technology and RD InnoTech Ltd.
China tightened digital asset controls in recent months and restricted tokenization activities. Mainland regulators banned unauthorized yuan-pegged offshore stablecoins and increased scrutiny of related operations. Hong Kong continues to develop its own regulated digital asset framework.
The HKMA stated that it will supervise licensed issuers under strict compliance standards. Officials emphasized that issuers must show sustainable operations and effective risk controls. The regulator plans to release further updates once it finalizes approvals.
Stablecoins maintain stable value by linking to fiat currencies such as the $US dollar. Market participants use these tokens for trading, payments, and settlements. Hong Kong requires all Hong Kong dollar-backed stablecoins to hold regulatory authorization.
Bloomberg sources said approvals could arrive within two weeks if reviews conclude. The HKMA said it will issue only a small number of permits in the first batch. Authorities will oversee licensed issuers under the Stablecoin Ordinance framework.
