Last updated on March 26th, 2026 at 08:50 pm
Hong Kong is preparing to approve its first stablecoin issuer licenses, with banking giants HSBC and Standard Chartered expected to be among the initial recipients. The move signals a significant milestone in the city’s effort to establish itself as a regulated hub for digital assets.
According to sources cited by Bloomberg, approvals could arrive within weeks under a new regulatory framework overseen by the Hong Kong Monetary Authority (HKMA). If granted, the licenses would allow approved institutions to issue stablecoins legally within Hong Kong’s financial system.
🚨 BREAKING: HSBC and Standard Chartered are about to get Hong Kong’s first stablecoin licences.
These two banks already print Hong Kong’s physical banknotes.
Now they’ll issue digital ones.
—
Hong Kong narrowed 36 applications down to 3 or 4.
The HKMA deliberately picked… pic.twitter.com/dQb61AYtie
— Simon Taylor (@sytaylor) March 13, 2026
New stablecoin rules take effect
Hong Kong formally introduced its licensing regime through the Stablecoin Ordinance, which came into force in 2025. The law requires issuers of fiat-referenced stablecoins to obtain approval from regulators before launching products tied to currencies such as the Hong Kong dollar.
Officials have indicated that only a limited number of licenses will be granted in the first round. Regulators reportedly reviewed dozens of potential applicants, with about 36 companies initially expressing interest in entering the market.
The cautious rollout reflects the government’s aim to build trust in digital assets while protecting investors and maintaining financial stability. By setting strict requirements for reserves, governance, and transparency, Hong Kong hopes to avoid risks associated with poorly backed stablecoins.
Banks position for blockchain-based payments
Among the expected license recipients, Standard Chartered has already outlined plans to launch a Hong Kong dollar-pegged stablecoin through a joint venture initiative. The project is aimed at exploring blockchain-powered payment infrastructure and new settlement systems.
HSBC’s potential approval has drawn attention because the bank did not participate in the HKMA’s earlier stablecoin sandbox program, which allowed companies to test digital currency products under regulatory supervision.
Chinese tech giants JD.com and Ant Group participated in the HKMA’s earlier stablecoin sandbox program designed to test prospective issuers. However, reports suggest both companies may have temporarily paused their licensing applications following concerns raised by mainland Chinese authorities.
Hong Kong’s push to regulate and integrate stablecoins comes as global financial centers compete to attract crypto firms and digital-asset investment. By welcoming major international banks into the ecosystem, the city hopes to combine traditional finance credibility with emerging blockchain technology.
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