The Hong Kong Monetary Authority (HKMA) is expected to grant its first batch of stablecoin issuer licenses within two weeks, with banking giants HSBC and a joint venture led by Standard Chartered reportedly set to be among the first recipients. This marks a significant step in Hong Kong's push to become a regulated hub for digital assets.
According to reports from Bloomberg and the South China Morning Post, authorities are prioritizing institutions already authorized to issue banknotes in the city, favoring bank-led issuers due to their robust capital base and perceived ability to ensure greater safety and facilitate wider adoption. The HKMA's Chief Executive, Eddie Yue, announced last month that the first, limited batch of licenses would be granted in March, following the review of 36 applications received under the new regulatory framework.
The Stablecoin Ordinance, enacted in August 2025, mandates that any entity seeking to issue a fiat-referenced stablecoin (FRS) or a Hong Kong Dollar (HKD)-denominated token in the region must obtain a license. The exact number of licenses and the final timetable are still subject to change, but sources suggest a possible announcement date of March 24.
Standard Chartered has been actively preparing for this move, having formed a joint venture last year with Animoca Brands and Hong Kong Telecommunications (HKT) to apply for a license to issue an HKD-pegged stablecoin. The trio has been part of the HKMA's stablecoin issuer sandbox program since 2024, testing tokens in scenarios like e-commerce and cross-border settlements. HSBC's potential approval, however, has reportedly surprised some industry observers as the bank did not participate in the regulator's sandbox program, though it has been engaged in other tokenization projects.
This development in Hong Kong occurs against the backdrop of mainland China's recent reaffirmation of its ban on virtual assets and prohibition of unauthorized yuan-pegged offshore stablecoins. Legal experts have suggested Hong Kong's ambitions could be hindered by the People's Bank of China's crackdown, but others see the city as a testing ground for financial innovation, serving as a "firewall" and a conduit for Chinese assets to engage with blockchain technology abroad.
