Hong Kong is nearing the launch of its stablecoin licensing regime, and HSBC and Standard Chartered are reportedly among the frontrunners for the first batch of approvals. Local reports cited by the South China Morning Post and Bloomberg said regulators may give priority to note-issuing banks in the initial phase.
Under the new framework, any company seeking to issue a stablecoin in Hong Kong must first obtain a license from the Hong Kong Monetary Authority. That puts fiat-linked token issuance under direct regulatory supervision from the start. Reports said the first approvals could arrive around March 24, though authorities have not confirmed a final schedule.
Thirty-six applications filed as regulators weigh first approvals
Hong Kong Financial Secretary Paul Chan said in his 2026–27 budget speech that the government plans to issue the first licenses in March. Earlier this year, HKMA Chief Executive Eddie Yue said regulators had already received 36 applications under the new regime.
Current signals suggest traditional banks may have an edge in the first round. Note-issuing banks already operate inside Hong Kong’s tightly supervised financial system, which gives regulators a clearer compliance record, stronger visibility into operations, and more established reserve oversight. That appears to place HSBC and Standard Chartered in a favorable position.
Sandbox trials shaped the licensing framework
Hong Kong began building its digital asset strategy in 2022, adding licensing rules for crypto exchanges and formal guidance for stablecoin issuers. In 2024, policymakers launched a stablecoin sandbox to test token models, reserve arrangements, and transaction mechanisms in a controlled setting.
One sandbox participant was a joint project involving Standard Chartered, Animoca Brands, and Hong Kong Telecommunications. Those trials gave regulators direct exposure to how stablecoin systems might function inside the city’s financial ecosystem before full licensing begins.
Banks are moving into Hong Kong’s regulated digital asset market
The framework is designed not only to attract crypto-native firms, but also to bring established financial institutions into regulated digital asset activity. If HSBC and Standard Chartered receive early approvals, Hong Kong’s banking sector would take a direct role in compliant stablecoin issuance.
The first licensing round will be closely watched because it reflects how Hong Kong intends to balance reserve safeguards, token stability, and institutional participation. The outcome will also show how far the city has progressed in turning its digital asset policy into an operational market structure.