HSBC and Standard Chartered may become first stablecoin issuers in Hong Kong

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HSBC seen as stablecoin issuer candidate

Banks could receive the first licenses

The city’s regulator — the Hong Kong Monetary Authority (HKMA) — sees banks as the most reliable candidates to launch this new segment of digital assets. Authorities are also taking into account that some of these institutions already have the right to issue banknotes in the city.

Among such organizations are HSBC and Standard Chartered, which makes them likely candidates for the first wave of licensing.

HKMA previously stated that the first stablecoin issuance licenses could be granted as early as March. In total, the regulator has received 36 applications from companies interested in issuing such tokens.

At the same time, the banks have not officially confirmed their participation. Standard Chartered declined to comment on the situation, while HSBC did not respond to media requests. HKMA itself said it does not comment on market rumors.

Sandbox and early projects

Preparations for launching the stablecoin sector in Hong Kong have been underway for several years. In 2024, authorities launched a dedicated regulatory sandbox, allowing companies to test potential models for issuing and circulating such assets.

Several projects are participating in the pilot program. These include a joint initiative by Standard Chartered, Animoca Brands, and Hong Kong Telecommunications, as well as companies Jingdong Coinlink Technology and RD InnoTech.

Under the proposed rules, all issuers of stablecoins pegged to the Hong Kong dollar must obtain a license from HKMA. At the initial stage, the regulator plans to issue only a limited number of approvals. This approach will allow authorities to assess how the new models operate and whether the business structures are sustainable.

Why the city is betting on stablecoins

The development of a regulated digital asset segment is part of a broader strategy aimed at strengthening Hong Kong’s position in the fintech industry. Authorities first announced plans to build a comprehensive regulatory framework for crypto companies back in 2022.

Since then, the city has introduced licensing for cryptocurrency exchanges and investment products linked to digital assets. The next step is the launch of regulated stablecoin issuance.

According to industry analysts, the total market capitalization of stablecoins already exceeds $150 billion. They are widely used for settlement on crypto exchanges and for cross-border payments. If banks such as HSBC and Standard Chartered enter this market, it could accelerate the integration of stablecoins into the traditional financial system.

Earlier, authorities also expanded rules for crypto trading. The Securities and Futures Commission (SFC) allowed licensed brokers to provide crypto margin financing and for the first time outlined a framework for launching perpetual contracts on virtual asset trading platforms (VATP) for professional investors. The new rules open the door for more complex crypto products and could strengthen Hong Kong’s position as one of Asia’s leading digital asset hubs.

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