Hong Kong Nears First Stablecoin Licenses as HSBC and Standard Chartered Lead Approvals

• Hong Kong prepares to issue its first stablecoin licenses as HSBC and Standard Chartered emerge among expected early issuers.

• The HKMA plans a small first batch of stablecoin licenses after reviewing interest from thirty six institutions.

• Hong Kong Stablecoin Ordinance requires firms to secure approval before issuing fiat linked digital currencies.

Hong Kong regulators are preparing to grant the city’s first stablecoin issuer licenses as the government advances its regulated digital asset strategy. HSBC and Standard Chartered are major banks that would be amongst the first approved institutions. Regulators are still screening applications as they complete the first licensing procedure.

Hong Kong approving stablecoin licenses for HSBC and Standard Chartered.

Two of Asia’s biggest banks. Issuing stablecoins directly.

Banks aren’t watching from the sidelines anymore.

They’re building the rails. pic.twitter.com/FoHCnwUuUj

— hypersound (@hypersoundNFT) March 14, 2026

The Hong Kong Monetary Authority regulates the new stablecoin system through the Stablecoin Ordinance. The legislation became effective in 2025 and mandates companies to seek permission prior to their issuance of fiat-referenced stablecoins. The framework was developed by regulators to sustain financial stability as well as innovation.

Officials have not confirmed any successful applicants yet. However, people familiar with the process expect approvals within weeks. Reports suggest authorities may announce the first licenses around March 24.

Hong Kong received strong interest from the financial sector. Earlier disclosures showed that regulators received applications from at least thirty six institutions seeking stablecoin permits.

HKMA Plans Limited First Batch of Stablecoin Issuers

The Hong Kong Monetary Authority is only going to approve a few issuers in the first round. Regulators are of the opinion that a small launch will enable close observation of market activity.

Authorities continue evaluating applications submitted by banks and financial technology companies. However, the regulator intends to prioritize institutions that already operate within Hong Kong’s banking system.

This approach allows regulators to rely on firms that already meet strict compliance standards. In addition, established banks already follow detailed oversight rules under Hong Kong financial law.

Officials want to ensure that stablecoin issuance develops within a controlled regulatory structure. The first approvals will therefore remain limited while authorities evaluate operational risks.

HSBC and Standard Chartered Likely Among Early Issuers

HSBC and Standard Chartered appear likely to receive approval in the first licensing batch. Both banks already play a central role in Hong Kong’s monetary system.

Hong Kong authorizes three commercial banks to issue physical currency in the city. These banks include HSBC, Standard Chartered, and the Bank of China.

Because of this role, regulators consider these institutions closely linked to the Hong Kong dollar system. Authorities therefore see them as credible participants in the stablecoin framework.

Standard Chartered has already signaled plans to issue a Hong Kong dollar-linked stablecoin through a joint venture. Meanwhile, HSBC’s potential approval stands out for another reason.

The bank did not participate in the HKMA’s earlier stablecoin sandbox program. That program allowed regulators to test potential stablecoin models with selected companies.

Stablecoin Ordinance Establishes Legal Oversight

Hong Kong introduced the Stablecoin Ordinance in August 2025 to regulate the sector. The law created a formal licensing system for companies issuing fiat-referenced stablecoins.

The framework also prohibits companies from promoting unlicensed stablecoins to retail investors. Authorities designed the rule to prevent unregulated digital tokens from entering the local market.

Regulators want licensed issuers to meet strict reserve and operational requirements. These rules aim to strengthen investor protection and maintain confidence in digital payment systems.

The new system forms part of Hong Kong’s wider digital asset policy. Officials want to build a regulated environment for blockchain-based financial services.

Digital Asset Strategy Expands Hong Kong’s Global Role

Hong Kong continues positioning itself as a major center for regulated digital finance. Authorities believe clear regulations will attract institutional participation and international investment.

Stablecoins already play an important role in digital asset markets. They support trading activity and facilitate settlement across crypto platforms.

Financial institutions also study their potential use in cross-border payments and financial infrastructure. As a result, governments and regulators worldwide are developing stablecoin frameworks.

Hong Kong’s licensing program reflects growing competition among financial centers to attract digital asset businesses. Earlier this year, Hong Kong began issuing stablecoin licenses to protect users and bring digital currency issuers under clear legal oversight. The city aims to combine regulatory oversight with financial innovation as stablecoins enter mainstream finance.