Global banking giants HSBC and Standard Chartered are emerging as frontrunners in the race to secure Hong Kong’s first stablecoin issuer licenses, according to a report by Bloomberg. The development would place two of the city’s note-issuing banks at the center of the government’s efforts to strengthen its position as a global digital asset hub.
Authorities in Hong Kong are preparing to grant the first batch of approvals under the new stablecoin regime, with the two banks expected to feature among the initial recipients. The move reflects the city’s broader push to integrate digital assets into its financial system while maintaining strict regulatory oversight.
Banks Positioned for Early Approvals
According to people familiar with the matter cited in the Bloomberg report, regulators intend to prioritize institutions that already hold authorization to issue banknotes. HSBC and Standard Chartered are among the banks permitted to issue currency in Hong Kong, a status that could give them an advantage in the licensing process.
The territory’s financial regulator, the Hong Kong Monetary Authority, is said to favor bank-led stablecoin issuers because such institutions typically have strong capital reserves, established compliance frameworks, and extensive experience operating within tightly regulated financial environments. Officials believe these factors could help support wider adoption of stablecoins while maintaining financial stability.
The regulator previously indicated that the first stablecoin licenses could be issued as early as March and confirmed that it had received 36 applications from firms seeking authorization under the new framework.
Hong Kong Advances Regulated Crypto Strategy
Hong Kong’s stablecoin initiative forms part of a broader strategy introduced in 2022 to position the city as a global hub for digital assets. The government has rolled out several regulatory measures, including licensing requirements for cryptocurrency exchanges and new rules governing issuers of stablecoins.
Under the framework, any entity seeking to issue stablecoins linked to the Hong Kong dollar must obtain approval from the Hong Kong Monetary Authority. Stablecoins are a category of cryptocurrency designed to maintain a stable value by being backed by reserve assets, typically fiat currencies such as the US dollar.
In 2024, authorities launched a regulatory sandbox to test stablecoin issuance models under supervision. Participants included a consortium involving Standard Chartered, Animoca Brands, and Hong Kong Telecommunications, as well as firms such as Jingdong Coinlink Technology and RD InnoTech.
Policymakers have emphasized that only a limited number of licenses will be granted initially. Officials say the cautious rollout is intended to ensure that approved issuers demonstrate viable business models, strong regulatory compliance, and clear real-world use cases for stablecoins. If confirmed, the move would mark a significant step in Hong Kong’s plan to integrate regulated digital assets into its financial ecosystem while placing established banking institutions at the forefront of the emerging stablecoin market.
