HSBC, Standard Chartered Lead Hong Kong Stablecoin Licenses
HSBC and Standard Chartered are tipped as top candidates for Hong Kong stablecoin licenses in March 2026, as the HKMA prepares its first approvals.
What to Know
- HSBC and Standard Chartered are reportedly set to receive the first Hong Kong stablecoin licenses from the HKMA
- March 24 has been floated as a possible approval date, though the HKMA has not confirmed any applicant names
- 36 institutions applied for a stablecoin issuer license in September 2025 — only a 'very small number' will be approved first
- Hong Kong's Stablecoin Ordinance took effect in August 2025, making unlicensed fiat-referenced stablecoin offerings to retail investors illegal
Hong Kong stablecoin licenses may be heading straight to the two banks that already run the city's physical money supply. HSBC and a Standard Chartered-led joint venture are tipped to be among the first institutions approved by the Hong Kong Monetary Authority, according to a Thursday report citing people familiar with the matter — a move that says a lot about how Hong Kong plans to build its digital asset future.
The HKMA's First Stablecoin License Picks
The South China Morning Post reported Thursday that the Hong Kong stablecoin license race already has frontrunners. HSBC and a joint venture led by Standard Chartered are expected in the first approval batch, with sources pointing to March 24 as a possible issuance date. The HKMA has not officially confirmed any names, and the number of licenses plus the timetable remained subject to change as of the report.
Standard Chartered declined to comment. HSBC did not respond.
The first batch of stablecoin issuer licenses will include a very small number of issuers.
Why Are Legacy Banks First in Line?
The selection logic isn't hard to follow. The Hong Kong government authorizes only three commercial banks to issue physical banknotes — HSBC, Standard Chartered, and Bank of China. Regulators appear to be prioritizing those same institutions for the digital equivalent, giving incumbents a meaningful head start over the 36 applicants that filed under the HSBC stablecoin licensing regime by September 2025.
Call it pragmatism or call it regulatory capture — either way, the crypto-native firms that applied alongside these giants may be waiting a long time for their turn.
What Does This Mean for Hong Kong's Digital Asset Push?
Hong Kong enforced its Stablecoin Ordinance in August 2025, creating a statutory framework that made unlicensed fiat-referenced stablecoins illegal for retail investors. The ordinance positioned the city as a regulated alternative to mainland China, where launching Standard Chartered stablecoin products reportedly faces growing friction.
Approving HSBC and Standard Chartered first would be a significant move toward the city's declared ambition to become a global digital asset hub. The irony is hard to ignore — two of the world's oldest colonial-era banking institutions are now the face of Hong Kong's crypto-forward future.
Frequently Asked Questions
What is a Hong Kong stablecoin license?
A Hong Kong stablecoin license is an authorization issued by the Hong Kong Monetary Authority under the Stablecoin Ordinance, enforced in August 2025. It permits institutions to legally issue fiat-referenced stablecoins to retail investors. Without a license, offering such stablecoins is illegal under Hong Kong law.
When will HSBC and Standard Chartered receive stablecoin licenses?
Sources cited by the South China Morning Post pointed to March 24, 2026 as a possible date for the first HKMA stablecoin license approvals. However, the number of licenses and the timetable had not been finalized as of the report and remained subject to change.
How many institutions applied for a Hong Kong stablecoin license?
The HKMA received applications from 36 institutions for a stablecoin issuer license by September 2025. HKMA Chief Executive Eddie Yue said in February 2026 that the first approval batch would include only a very small number of issuers.