Hong Kong Stablecoin Regulation Enters Implementation Stage: HSBC and Standard Chartered Bank May Be First to Obtain Stablecoin Issuance Licenses

On March 13, Bloomberg reported, citing sources familiar with the matter, that banking giants HSBC and Standard Chartered are expected to be among the first institutions to receive licenses to issue stablecoins in Hong Kong. If approved, these banks will be able to issue stablecoins under the regulatory framework established by the Hong Kong Monetary Authority (HKMA), signaling that Hong Kong’s stablecoin regulatory system is moving into the operational phase.

Hong Kong previously established a legal framework for stablecoin issuance through the “Stablecoin Ordinance.” The law, which takes effect in 2025, requires any entity issuing stablecoins pegged to fiat currency to obtain approval from regulators and adhere to strict reserve management, disclosure, and risk control standards. This move is seen as a key policy in Hong Kong’s efforts to promote compliant digital assets and is an important part of its strategy to build a global digital asset hub.

Sources say that Hong Kong regulators have reviewed dozens of stablecoin license applications over recent months, but the first round of approvals is expected to be limited in number. Previously disclosed data indicated that up to 36 companies had expressed interest in applying for stablecoin issuance licenses.

Regarding specific plans, Standard Chartered has publicly announced its intention to issue a stablecoin pegged to the Hong Kong dollar through a joint venture, mainly for cross-border payments and digital financial settlement scenarios. In contrast, HSBC’s potential license is expected to attract more market attention, as the bank has not previously participated in the HKMA’s stablecoin sandbox testing program, which is primarily used to evaluate the technical capabilities and compliance of potential issuers.

Stablecoins, as digital currencies pegged to fiat or other assets, play an important role in the crypto market. In recent years, their applications have expanded from liquidity trading tools to cross-border payments, supply chain finance, and international settlements.

As global financial centers accelerate digital asset regulation policies, Hong Kong is trying to balance innovation with financial stability. Market analysts believe that if HSBC and Standard Chartered obtain stablecoin issuance licenses, it will further encourage traditional financial institutions to participate in blockchain payment systems and may accelerate the development and adoption of the Hong Kong dollar stablecoin.