Hong Kong is preparing to issue its first stablecoin licenses, with banking giants HSBC and Standard Chartered expected to be among the first recipients.
Key Takeaways
- HSBC and Standard Chartered could become the first licensed stablecoin issuers in Hong Kong under a new regulatory framework.
- The Hong Kong Monetary Authority has received 36 applications for stablecoin issuer licenses.
- Authorities plan to grant the first approvals in March, marking a major step in the city’s digital asset strategy.
- The move is part of Hong Kong’s broader effort to position itself as a global crypto hub.
What Happened?
Hong Kong regulators are preparing to issue the city’s first licenses for stablecoin issuers, with HSBC and Standard Chartered expected to be among the earliest institutions approved. Reports from South China Morning Post, Bloomberg, and Reuters indicate that the Hong Kong Monetary Authority is prioritizing major banks already authorized to issue banknotes as part of the first batch of approvals.
The licensing initiative is part of a broader regulatory framework designed to bring stablecoin issuers under formal supervision while encouraging innovation in the digital asset sector.
🚨HSBC & STANDARD CHARTERED NEAR HONG KONG STABLECOIN LICENSE
— Coin Bureau (@coinbureau) March 13, 2026
HSBC and a venture led by Standard Chartered could be among the first to receive Hong Kong stablecoin licences, possibly by March 24.
The HKMA is reviewing 36 applications with few licenses set for initial release. pic.twitter.com/o2lK4zRvTm
Hong Kong Moves Toward First Stablecoin Approvals
According to reports citing people familiar with the matter, HSBC and a joint venture linked to Standard Chartered could be among the institutions receiving the first stablecoin issuer licenses. The approvals would allow licensed entities to issue stablecoins pegged to fiat currencies such as the Hong Kong dollar.
The South China Morning Post reported that licenses could be granted around March 24, although the final timeline has not yet been officially confirmed. Authorities are expected to approve only a limited number of applicants in the initial phase.
The Hong Kong Monetary Authority has reportedly received 36 applications under the new licensing framework, highlighting strong industry interest as companies seek to participate in the regulated stablecoin market.
Despite the reports, the banks have not publicly confirmed the expected approvals. Standard Chartered declined to comment, while HSBC did not immediately respond to media requests. The HKMA has also stated that it does not comment on market rumors.
Stablecoins Become Key Part of Hong Kong Crypto Strategy
Hong Kong has been steadily expanding its regulatory framework for digital assets as it aims to establish itself as a leading global hub for crypto and blockchain innovation.
In his 2026 to 2027 budget speech, Financial Secretary Paul Chan confirmed that the government intends to issue the first batch of stablecoin licenses in March.
The city previously introduced legislation in May 2025 creating a formal licensing regime for fiat referenced stablecoin issuers under the supervision of the Hong Kong Monetary Authority. The rules require issuers to obtain licenses and meet strict requirements for reserves, governance, and risk management.
Regulators have also been testing the framework through a stablecoin sandbox launched in 2024, which allowed potential issuers to experiment with token designs under regulatory oversight. One of the participants included a joint venture involving Standard Chartered, Animoca Brands, and Hong Kong Telecommunications.
Traditional Banks Enter the Stablecoin Market
The expected approvals highlight a growing role for traditional financial institutions in the stablecoin sector.
Banks such as HSBC and Standard Chartered have already explored blockchain-based financial infrastructure in other markets. In Singapore, the institutions worked with financial partners to examine how tokenized assets and blockchain payment systems could improve areas such as trade finance and wealth management.
If approved, the banks would be among the first traditional financial institutions globally to operate under a fully regulated stablecoin issuance framework in a major financial center.
Industry observers say the involvement of large banks could boost confidence in stablecoins by bringing stronger compliance standards and regulatory oversight to the sector.
CoinLaw’s Takeaway
In my experience covering the crypto industry, stablecoins often struggle with trust and regulatory clarity. What Hong Kong is doing here feels like a turning point. By placing major banks like HSBC and Standard Chartered at the center of stablecoin issuance, regulators are clearly trying to blend traditional finance credibility with blockchain innovation.
I found this approach particularly interesting because it signals a shift from the early days of stablecoins, when most issuers were purely crypto native companies. If large banks begin issuing stablecoins under strict regulation, it could reshape how digital dollars and digital Hong Kong dollars are used in payments, trading, and global finance.
For Hong Kong, this move also reinforces its ambition to become one of the most regulated and trusted crypto hubs in the world.
