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- Hong Kong may grant the first stablecoin licenses to the HSBC and Standard Chartered venture.
- HKMA could prioritize banknote-issuing banks for the first stablecoin approvals.
- Hong Kong received 36 applications after passing stablecoin regulation in 2025.
Hong Kong regulators are preparing to issue the city’s first stablecoin licenses as part of a new digital asset framework. HSBC Holdings and a joint venture led by Standard Chartered are expected to be among the first approved issuers.
The development was reported Thursday by the South China Morning Post. The report cited people familiar with the licensing process at the Hong Kong Monetary Authority (HKMA).
Sources said regulators may prioritize banks that already issue banknotes in the city. This group includes HSBC, Standard Chartered, and the Bank of China.
Hong Kong Moves Toward Regulated Stablecoins
The Hong Kong government allows only these three banks to issue physical currency. They operate under authorization from the HKMA.
Authorities have not confirmed which institutions will receive the first stablecoin licenses. The HKMA has not released a list of successful applicants.
Standard Chartered declined to comment on the report. HSBC did not immediately respond to media requests.
The possible approvals would support Hong Kong’s plan to build a regulated digital asset market. Officials have said the city aims to strengthen its role in global financial technology.
The strategy also contrasts with mainland China’s strict limits on cryptocurrency activities. Hong Kong continues to develop regulatory systems for blockchain services and digital assets.
Sources told the newspaper that the final number of licenses has not been decided. The schedule for approvals may also change.
However, people familiar with the matter pointed to March 24 as a possible date for the first announcements. Earlier reports said the HKMA expected to grant the first licenses in March 2026.
Source: HKMA
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Hong Kong Stablecoin Rules Favor Established Banks
HKMA Chief Executive Eddie Yue discussed the plan earlier this year. In February, he said regulators expected only a small number of issuers in the first round.
Industry observers say the approach focuses on established financial institutions. Regulators may see banks as more stable partners for the early phase of the stablecoin market.
A representative from advisory firm Icon.Partners provided a comment on the proposed strategy. According to the representative, the proposed strategy is a “legitimate” decision by regulators.
The representative further added that the proposed strategy could help address concerns about trust levels. This is because the banks already work within the monetary system in Hong Kong.
The Hong Kong government passed the Stablecoin Ordinance in August 2025. The law provided regulations for companies that issue fiat-referenced stablecoins.
The law further prohibits marketing unlicensed stablecoins to retail investors. This prohibits them from offering these tokens without a license.
The interest in the program has been substantial. In September, the HKMA announced that it had received 36 license requests for a stablecoin issuer.
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