HSBC Holdings and Standard Chartered are set to be among the first licensed stablecoin issuers in Hong Kong, giving two of the city’s note-issuing banks a central role in the government’s effort to become a digital-asset hub. The two banks will be in the first batch of approvals as authorities prioritise institutions already authorised to issue banknotes, according to sources familiar with the matter. The Hong Kong Monetary Authority (HKMA) prefers bank-led stablecoin issuers because they are well capitalised and can provide greater safety while promoting broader adoption, the sources said. The city’s de facto central bank said last month that the first stablecoin licenses could be issued as early as March and that it had received 36 applications.
More Hong Kong policymakers have said only a “small number” of licenses would initially be approved to ensure stablecoins have real-world use cases, and that issuers maintain sustainable business models with strong regulatory compliance. In 2024, the government initiated a sandbox for stablecoin issuers. Participants included a Standard Chartered joint venture with Animoca Brands and Hong Kong Telecommunications, as well as Jingdong Coinlink Technology and RD InnoTech. Hong Kong requires any issuers of Hong Kong dollar-backed stablecoins to be licensed by the HKMA.
Hong Kong has been pushing ahead with ambitions to become a crypto hub through a series of regulatory measures first announced in 2022. In addition to introducing a license for cryptocurrency exchanges, the government announced plans to license issuers of stablecoins, a type of cryptocurrency designed to maintain a consistent value with backing from another asset, typically US dollars.
The Hong Kong Monetary Authority (HKMA) is poised to license the first stablecoins issued by major banks, with HSBC Holdings and Standard Chartered expected to be among the initial issuers. The first batch of approvals will target institutions already authorised to issue banknotes, according to sources familiar with the matter. The HKMA prefers bank-led stablecoin issuers because they are well capitalised and can offer greater safety while promoting broader adoption. The approach reflects regulators’ view that sound balance sheets and established customer bases help stabilize the volatile crypto sector.
Hong Kong has been broadening its crypto-regulatory framework since 2022, including a license for cryptocurrency exchanges and plans to license stablecoin issuers. Reg regulators opened a 2024 sandbox for stablecoin issuers, with participants including a Standard Chartered joint venture and others, and they said the first licenses could come as early as March with around 36 applications received. Only a small number of licenses will be issued initially to ensure real-world use cases and sustainable, compliant businesses.
The Hong Kong Monetary Authority (HKMA) is poised to license the first stablecoins issued by major banks, with HSBC Holdings and Standard Chartered expected to be among the initial issuers. The first batch of approvals will target institutions already authorised to issue banknotes, reflecting a bank-led approach to anchor stablecoins in established financial frameworks. Bank-led issuers are favoured because they are well capitalised and can offer greater safety while promoting broader adoption. The HKMA has indicated that around 36 applications have been received for HKD-backed stablecoins, and regulators plan to issue only a small number of licenses initially to ensure real-world use cases and sustainable, compliant businesses.
Hong Kong has been expanding its crypto-regulatory framework since 2022, including licensing cryptocurrency exchanges and plans to license stablecoin issuers. A 2024 sandbox for stablecoin issuers included participants such as a Standard Chartered joint venture and other entities, underscoring the government’s commitment to making Hong Kong a crypto hub while maintaining robust oversight.
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