HSBC And Standered Chartered Set To Receive Stablecoin Licenses In Hong Kong

Steady attention without excessive speculation.

Hong Kong’s Move Toward Regulated Digital Assets

HSBC Holdings Plc and Standard Chartered Plc, two of Hong Kong’s note-issuing banks, are set to receive the first stablecoin issuer licenses from the Hong Kong Monetary Authority (HKMA). This is part of Hong Kong’s plan to become a regulated hub for digital assets, with approvals possibly coming as early as March 24, 2026. The move follows the 2025 Stablecoin Ordinance, which requires anyone issuing Hong Kong dollar-backed stablecoins to have a license. The law aims to ensure compliance, safety, and practical use. Well-capitalized banks like these are prioritized because they can reduce risks and encourage wider adoption. Over 70 parties have expressed interest, and 36 formal applications have been submitted.

While this is Hong Kong’s first set of stablecoin licenses, other regions have made similar steps. Singapore’s Monetary Authority gave in-principle approvals to issuers like Paxos in 2023. The EU’s MiCA framework has allowed bank-led stablecoins since 2024. In previous cases, markets responded positively, with more institutional participation and higher stablecoin volumes. For example, after Singapore’s approvals, USDC issuance in the region grew by 20%, helping crypto adoption and showing strong demand for regulated digital assets.

Comparing Hong Kong’s Stablecoin Licensing with Global Examples

Deeper Dive into Hong Kong’s Stablecoin Framework

Hong Kong’s 2025 Stablecoin Ordinance requires issuers to keep full reserves in licensed banks and undergo regular audits to protect users and maintain peg stability. The HKMA started a regulatory sandbox in 2024 with participants like Standard Chartered’s joint venture with Animoca Brands, Hong Kong Telecommunications, JD Coinlink Technology, and RD InnoTech.

The framework integrates stablecoins into payments and remittances while favoring note-issuing banks such as HSBC and Standard Chartered for their strong capital and regulatory compliance. Standard Chartered’s joint venture plans an HKD-pegged stablecoin to improve cross-border payments and support digital asset adoption in Asia.

With approvals expected soon, competition among the 36 applicants may grow, and Hong Kong could expand to non-HKD stablecoins, aiming to rival Singapore in regulated crypto innovation.

What Readers Should Watch Next

• License Issuance: Track official HKMA announcements for confirmation of approvals and exact launch timelines for HSBC and Standard Chartered’s HKD stablecoins.
• Other Applicants: Monitor progress on the remaining 36 applications, especially from non-bank entities, to see if more licenses follow soon.
• Market Adoption: Watch for initial usage metrics, such as stablecoin issuance volumes and integration into DeFi or payments in Hong Kong.
• Global Reactions: Observe responses from regulators in Singapore, EU, or elsewhere, potentially influencing cross-border stablecoin standards.