HSBC and Standard Chartered are expected to be among Hong Kong’s first registered stablecoin issuers, according to a Bloomberg report on March 13. The Hong Kong Monetary Authority (HKMA) intends to prioritize organizations already authorized to issue banknotes in the city.
The approvals are expected as part of the first batch of stablecoin licenses, which Hong Kong hopes to issue by late March. Authorities received approximately 36 applications, but expect to give only a modest number of licenses at the start.
Neither HSBC nor Standard Chartered has publicly confirmed its selection, and the HKMA has declined to comment on market rumors. Nonetheless, local media and market analysts regard the two banks as frontrunners.
How Hong Kong’s Stablecoin Regime Works
In 2024, the Legislative Council established a measure that set the stage for Hong Kong’s stablecoin. The law went into force in August 2025. Anyone in Hong Kong who issues fiat-pegged stablecoins, notably those linked to the Hong Kong dollar, must obtain a license from the HKMA under the rule.
Licensed issuers must follow strict rules on reserves, disclosure, and redemption to keep their tokens properly backed and redeemable at par. The HKMA also established a sandbox for potential issuers to test their business strategies and compliance before obtaining full authorization.
Standard Chartered’s Hong Kong unit joined that sandbox through a joint venture with Animoca Brands and telecom firm HKT, seeking a HKD‑backed stablecoin license. Regulators did not include HSBC in the sandbox, but they still view it as a leading candidate because of its size and role in Hong Kong’s currency system.
Why Regulators Prefer Bank‑Led Stablecoins
Regulators see large banks as safer issuers because they already operate under tight capital, liquidity, and risk rules. By placing note‑issuing banks at the center of initial approvals, the HKMA hopes to anchor the new stablecoin market in familiar institutions.
Analysts say this approach could boost trust among both retail and corporate users who want digital tokens that behave like cash but sit inside a regulated framework. It also makes it easier for the HKMA to supervise reserves and intervene if any problems emerge.
Pundits widely tip local crypto firm OSL as an early licensee alongside the banks, giving the regime a mix of traditional finance and native digital‑asset expertise. That pairing could help connect bank‑backed stablecoins with trading venues, custody platforms, and DeFi integrations.
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