HSBC and Standard Chartered will receive Hong Kong’s first stablecoin issuer licenses from the Hong Kong Monetary Authority (HKMA), which reviewed 36 applications and plans to approve only a small batch.
The Stablecoins Ordinance took effect in August 2025, requiring all fiat-referenced stablecoin issuers operating in the city to obtain an HKMA license.
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Why it matters:
- Both banks hold note-issuing authority in Hong Kong, a status the HKMA is prioritizing because it signals stronger capital reserves and regulatory oversight.
- Bank-led stablecoin issuance could accelerate institutional and retail adoption of tokenized payments in Hong Kong
- The HKMA’s preference for note-issuing banks sets a global precedent for how regulators gate stablecoin access
- Standard Chartered has separately warned that $500 billion in US bank deposits could shift to stablecoins by 2028
The details:
- A Standard Chartered joint venture with Animoca Brands and Hong Kong Telecommunications Ltd. participated in the HKMA’s sandbox launched in July 2024
- HSBC did not join the sandbox but its status as Hong Kong’s largest bank by assets strengthened its application
- Financial Secretary Paul Chan confirmed in February that only a small number of licenses would be granted initially
- Crypto exchange OSL may also be in the first batch, with approvals expected as early as March 24
The big picture:
- Hong Kong’s licensing push is part of a broader regulatory drive to become a digital-asset hub, first announced in 2022
- The global stablecoin market hit a record $313 billion in March 2026, with Citi projecting growth to between $1.9 trillion and $4 trillion
- Mainland China recently banned onshore tokenization of real-world assets, widening the regulatory gap with Hong Kong
