Hong Kong grants first stablecoin licenses to HSBC and Standard Chartered

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Hong Kong grants first stablecoin licenses

Why HSBC and Standard Chartered were chosen first

The selection of the first license recipients was not случайным. HSBC and Standard Chartered are among the banks authorized to issue Hong Kong dollars — a system that dates back to the 19th century. At that time, private banks issued money backed by silver, effectively creating a form of “private money.”

Today, the mechanism has evolved, but the logic remains similar. Banks deposit U.S. dollars into a government fund and issue banknotes against them. HKMA draws a direct parallel with modern stablecoins, describing them as a digital version of such private money — now operating on blockchain.

At the same time, the licenses come with some of the strictest identity requirements. Under the rules, stablecoin transfers are only allowed between wallets with verified identities. For transactions above HKD 8,000, the “travel rule” applies.

In practice, this means these stablecoins will likely rely on whitelisted addresses and built-in compliance checks within smart contracts. This makes them fundamentally different from more freely transferable tokens like USDT or USDC.

Hong Kong shifts away from CBDCs

It is also notable that Hong Kong is prioritizing bank-issued stablecoins over a central bank digital currency (CBDC). A pilot program involving 11 groups showed limited demand for a retail CBDC, prompting regulators to focus on an alternative model.

The stablecoin market is currently valued at around $310 billion and is almost entirely dominated by U.S. dollar-pegged tokens. Neither euro- nor yen-based stablecoins have gained significant traction so far.

Hong Kong is betting that regulated HKD-pegged stablecoins can carve out a role in regional settlements. However, it remains unclear whether such tokens — even with strict regulation — can compete with the dollar ecosystem and achieve sufficient network effects.

Stablecoins gain momentum

More and more major companies are entering the stablecoin space. For example, PayPal has already launched its PYUSD token and is integrating it into payments, while Stripe is actively building infrastructure for stablecoin transactions. Banks are also moving forward: JPMorgan is testing its own tokens for settlements, and Bank of America is exploring the possibility of launching a similar solution.

At the same time, other players are joining the race — from Société Générale to fintech firms like SoFi, which has already introduced a stablecoin for business use. Even giants such as Amazon and Walmart are reportedly exploring the idea of issuing their own tokens for payments and internal settlements.

It is worth noting that in Hong Kong, major investors are also looking to increase their exposure to digital assets.

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