HSBC, Standard Chartered To Receive First Stablecoin Licenses In Hong Kong – Report

Hong Kong is expected to grant the first batch of stablecoin issuer licenses within two weeks, reportedly choosing HSBC and Standard Chartered as the first companies to obtain the long-awaited approval.

Authorities are reportedly prioritizing institutions already authorized to issue banknotes and will approve the two banks in the first batch, according to people familiar with the matter. Notably, the HKMA favors bank-led stablecoin issuers due to their robust capital base and ability to ensure greater safety while facilitating wider adoption, the sources affirmed.

The HKMA enacted the Stablecoins Ordinance last August, which directs any individual or entity seeking to issue any fiat-referenced stablecoin (FRS) in Hong Kong, or any Hong Kong Dollar (HKD)-denominated token, to obtain a license from the financial regulator.

Industry sources suggested that Hong Kong’s licensing regime will initially prioritize the local currency. Standard Chartered has already announced plans to issue a Hong Kong dollar-pegged token.

The London-based bank, alongside Animoca Brands and Hong Kong Telecommunications (HKT), formed a joint venture last year to apply for a license to issue a HKD-denominated stablecoin.

RD Technologies, a Hong Kong-based fintech firm founded by former HKMA CEO Norman Chan Tak-lam, and JD Coinlink, the fintech arm of Chinese e-commerce giant JD.com, also started testing HKD-pegged tokens under the regulator’s sandbox program last year.

Meanwhile, HSBC’s potential approval has reportedly surprised the industry, given the bank’s absence from the HKMA-led sandbox. HSBC has focused on tokenization projects, including tokenized deposits.

However, the bank had reportedly been actively engaged with local and global players in the digital-asset space and is committed to playing a central role in Hong Kong’s evolving financial ecosystem.

Last month, Chinese authorities reaffirmed their long‑standing ban on virtual assets, saying that domestic companies and overseas entities under their control are prohibited from issuing virtual currencies abroad without official approval.

Nonetheless, experts also believe Hong Kong could serve as a testing ground for financial innovations, given competition with the US and favorable conditions for the internationalization of the yuan, the SCMP noted.

“Hong Kong is a testing field for Chinese assets and money to go abroad on the blockchain,” Raymond Chan, chairman of the Greater Bay Area FinTech League, told the news outlet. “We are the firewall defending against challenges that may disrupt the market in China, thanks to our full set of regulations.”