Hong Kong eyes first stablecoin licences for HSBC, StanChart

Banks including HSBC and Standard Chartered are expected to be among the first institutions to receive stablecoin licences in Hong Kong as the city moves forward with its new digital asset regulatory framework.

Reports from South China Morning Post and Bloomberg, citing people familiar with the matter, said the two banking giants could be included in the first batch of approvals under the territory’s upcoming stablecoin licencing regime. The licences will be issued by the Hong Kong Monetary Authority (HKMA), which is responsible for regulating banks and financial systems in the city.

According to the reports, approvals could arrive as early as 24 March, although the final timeline has not yet been formally confirmed by regulators.

Hong Kong prepares stablecoin licencing regime

Hong Kong is preparing to introduce a formal licencing system for firms that plan to issue stablecoins. Stablecoins are digital tokens designed to maintain a stable value by being linked to assets such as fiat currencies.

Under the proposed framework, any company intending to issue stablecoins in Hong Kong must first obtain a licence from the HKMA. The system is designed to strengthen oversight of digital assets and ensure that issuers meet strict requirements on reserves, governance and risk management.

Authorities have been developing the framework as part of a broader strategy to position Hong Kong as a regulated hub for digital finance and cryptocurrency innovation. The new rules are expected to bring stablecoin activities under the same level of supervision that applies to traditional financial institutions.

Note issuing banks likely to be prioritised

Sources quoted in the reports said the HKMA plans to prioritise Hong Kong’s note issuing banks during the first phase of approvals. HSBC and Standard Chartered are among the financial institutions authorised to issue Hong Kong dollar banknotes, which places them in a strong position under the new system.

By focusing on established banks, regulators aim to ensure that early stablecoin issuers have strong financial backing and robust compliance systems. Large banks already operate under strict regulatory supervision and maintain extensive risk management frameworks.

This approach may help authorities introduce the stablecoin market gradually while maintaining financial stability.

Banks expand digital asset involvement

Traditional banks in Hong Kong have been increasing their involvement in digital asset initiatives in recent years. Several global financial institutions have launched blockchain pilots, digital custody services and tokenisation projects as interest in digital finance continues to grow.

For banks such as HSBC and Standard Chartered, stablecoin issuance could represent another step in expanding their digital asset capabilities. Stablecoins are increasingly used in payments, trading and settlement across cryptocurrency markets.

If licences are granted, banks could develop regulated stablecoins that support cross border payments, financial market settlement and digital commerce.

Regulatory clarity for the crypto sector

The stablecoin licencing framework is part of Hong Kong’s wider effort to create clear rules for the digital asset industry. Authorities have introduced several measures aimed at balancing innovation with investor protection.

The government has already implemented licencing requirements for virtual asset trading platforms and continues to develop rules for other areas of the crypto ecosystem. Regulators say the goal is to create a transparent environment that attracts investment while reducing financial risks.

If the first licences are issued later this month, it would mark an important step in the city’s digital finance strategy. The move could also signal how traditional banks will play a role in the next phase of regulated digital currency development in Hong Kong.