HSBC Holdings Plc and a joint venture led by Standard Chartered Plc are expected to be among the first companies to receive stablecoin licences in Hong Kong, reported South China Morning Post (SCMP) and Bloomberg.
The approvals could come within the next two weeks, with the SCMP report pointing to a possible date of March 24, though the number of licences and final timetable remain subject to change.
Hong Kong’s de facto central bank, the Hong Kong Monetary Authority (HKMA), said last month that the first stablecoin licences could be issued as early as March.
The regulator has received 36 applications from companies seeking approval to issue stablecoins.
The move would place two of Hong Kong’s note-issuing banks at the centre of the government’s push to develop the city into a major digital-asset hub.
The potential approval of HSBC is notable because the bank did not participate in the HKMA-led stablecoin issuer sandbox launched in 2024.
Standard Chartered, by contrast, was part of the pilot through a joint venture with Animoca Brands Corp. and Hong Kong Telecommunications Ltd.
Bank-led stablecoin strategy to ensure financial stability
Hong Kong authorities appear to be prioritising well-capitalised financial institutions as stablecoin issuers in an effort to safeguard the financial system.
The reports said the HKMA prefers bank-led stablecoin issuers because they are already regulated, have strong capital buffers and are better positioned to support wider adoption of digital assets.
The city introduced a regulatory framework for stablecoins after the Stablecoin Ordinance took effect last August.
Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to another asset, typically a fiat currency such as the US dollar.
Under Hong Kong’s rules, any issuer of Hong Kong dollar-backed stablecoins must obtain a licence from the HKMA.
The regulator has said only a limited number of licences will initially be granted.
Hong Kong policymakers have emphasised that approvals will depend on whether issuers can demonstrate real-world use cases, sustainable business models and strong regulatory compliance.
Industry sources said in the SCMP report said the first stablecoins issued under the framework to focus on the Hong Kong dollar.
Standard Chartered has previously stated that it plans to issue a Hong Kong dollar-pegged stablecoin.
Hong Kong pushes digital asset ambitions amid regional tensions
The stablecoin licensing push forms part of Hong Kong’s broader effort to establish itself as a global centre for digital assets.
Since 2022, authorities have introduced several regulatory measures aimed at attracting crypto companies while maintaining strict oversight.
These include licensing requirements for cryptocurrency exchanges and a regulatory sandbox for stablecoin issuers.
Participants in the sandbox programme in 2024 included Standard Chartered’s joint venture with Animoca Brands and Hong Kong Telecommunications, as well as Jingdong Coinlink Technology and RD InnoTech Ltd.
The expected licence approvals come as mainland China has taken a stricter stance on digital asset activity.
Last month, China explicitly banned the onshore tokenisation of real-world assets (RWAs), increased scrutiny of related offshore activities and barred the issuance of yuan-pegged offshore stablecoins without authorisation.
Against that backdrop, Hong Kong is attempting to balance financial innovation with risk management.
By tightly controlling the number of stablecoin issuers and prioritising established financial institutions, authorities hope to encourage blockchain-based financial development while preventing potential disruptions to the financial system.
The city’s regulatory approach reflects concerns about the faster flow of money enabled by blockchain technology and the need to maintain stability as digital assets gain wider adoption.
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