According to sources cited by Bloomberg, HSBC and Standard Chartered are among the first financial institutions in Hong Kong to receive licences for stablecoin issuers. The Hong Kong Monetary Authority (HKMA) is now formalizing its regulatory framework for stablecoins.

The two banks are likely to be included in the initial approvals, with the HKMA reportedly prioritizing licensees that already issue banknotes, such as HSBC and Standard Chartered among Hong Kong’s note-issuing banks. The regulator prefers bank-led issuers due to their capital strength and potential for greater safety and broader adoption. Standard Chartered declined to comment, while HSBC did not respond to a request for comment. Additionally, the HKMA stated it does not comment on market rumors.

Regulatory framework and licensing timeline

Hong Kong has been working on digital asset regulatory infrastructure since 2022, introducing licensing requirements for cryptocurrency exchanges and subsequently announcing plans to regulate stablecoin issuers. Any issuer of Hong Kong dollar-backed stablecoins must obtain a licence from the HKMA. The regulator indicated that the first licences could be issued as early as March 2026 and confirmed it had received 36 applications. Authorities have stated that only a limited number of licences would initially be granted to ensure issuers can demonstrate genuine real-world use cases and sustainable, compliant business models.

In 2024, the HKMA launched a stablecoin sandbox programme, with participants including a Standard Chartered joint venture with Animoca Brands and Hong Kong Telecommunications, as well as Jingdong Coinlink Technology and RD InnoTech.

The anticipated approvals will position two of Hong Kong’s most established financial institutions at the forefront of the city’s efforts to develop a regulated digital asset ecosystem. This is occurring concurrently with the advancement of stablecoin regulatory frameworks in the EU, UK, and US.