HSBC and Standard Chartered Poised for Hong Kong’s First Stablecoin Licenses as City Prepares March 2026 Launch

Limited First Batch Expected as HKMA Reviews Applications Under Newly Enacted Stablecoin Ordinance

TL;DR

• Hong Kong plans to issue its first stablecoin issuer licenses in March 2026, with HSBC and Standard Chartered widely expected among early recipients.
• The framework stems from the Stablecoin Ordinance passed in May 2025 and implemented in August 2025, requiring licensing for fiat-referenced stablecoin issuers.
• Regulators reported 77 institutions expressing interest, though authorities said only a “very small number” of approvals will be granted initially.

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Hong Kong authorities are preparing to roll out the first official licenses for stablecoin issuers in March 2026, a step that places the global banking sector at the center of the city’s new regulatory framework for digital money. Officials familiar with the process said major international lenders HSBC and Standard Chartered are widely expected to appear among the earliest approved applicants once the Hong Kong Monetary Authority completes its evaluation of submissions. Government officials have indicated that the initial rollout will remain deliberately limited, with regulators granting licenses to only a “very small number” of institutions as part of a cautious first phase.

Financial Secretary Paul Chan Mo-po confirmed the government’s timetable for the licensing launch during public remarks, stating that Hong Kong is prepared to begin issuing stablecoin approvals in March 2026. Regulators described the licensing process as nearing completion after months of reviewing applications, with industry participants anticipating that the first batch of approvals will arrive shortly after regulatory assessments conclude. Authorities have also indicated that a second round of licensing decisions may follow once the initial group of approved issuers demonstrates compliance with the operational and regulatory standards established by the city’s financial authorities.

Hong Kong’s licensing regime stems from the Stablecoin Ordinance passed in May 2025 and implemented in August 2025, legislation that created a formal framework for regulating fiat-referenced stablecoins issued from the city. Under the law, any entity issuing stablecoins locally, or issuing Hong Kong-dollar-pegged stablecoins globally from the jurisdiction, must obtain authorization from the Hong Kong Monetary Authority before launching products. Officials said the regulatory design follows the principle “same activity, same risk, same regulation,” placing digital-asset issuers under oversight standards comparable to those governing traditional financial services providers.

Regulators evaluating applications have focused on several key criteria, including the structure of asset backing reserves, internal risk-management procedures, anti-money-laundering safeguards, and clearly defined use cases for the tokens being issued. Authorities have also assessed compliance frameworks designed to manage cross-border transactions and cooperation with international regulatory counterparts. Stablecoins—digital tokens typically pegged to fiat currencies such as the U.S. dollar—are widely used across global crypto markets for settlement, trading liquidity, and cross-border transfers.

Interest from financial institutions and technology companies has been intense since regulators opened the application process. Officials reported that 77 institutions have either applied for or expressed interest in obtaining licenses to issue stablecoins under the new regime. Regulatory officials have repeatedly cautioned that the first approvals will be limited to a small group of participants, even though demand for licenses remains strong across both traditional financial institutions and crypto-native firms.

Large banking institutions are widely viewed as strong candidates under the framework because of their existing compliance infrastructure and identity-verification systems. HSBC executives have publicly stated that the bank intends to participate in Hong Kong’s digital-asset initiatives provided the regulatory standards meet appropriate compliance requirements. The lender has already experimented with blockchain-based financial infrastructure through projects involving tokenized bonds, tokenized gold products, and digital deposit pilots within institutional markets.

Standard Chartered has pursued a more direct entry into the regulated stablecoin sector by forming Anchorpoint Financial, a joint venture created alongside Animoca Brands and Hong Kong Telecommunications to apply for a stablecoin issuer license in the city. The partnership aims to build a regulated issuance platform for digital currencies operating under the Hong Kong Monetary Authority’s supervision. Several of the companies involved in the venture previously participated in the regulator’s experimental program designed to test operational models for stablecoin issuance.

Hong Kong’s central bank launched a stablecoin issuer sandbox prior to the formal licensing rollout to allow selected participants to test issuance frameworks under regulatory supervision. Companies taking part in the sandbox included Standard Chartered (Hong Kong) alongside partners Animoca Brands and Hong Kong Telecommunications, giving regulators the opportunity to observe technical infrastructure, risk controls, and operational procedures before the licensing regime becomes fully operational. Authorities overseeing the sandbox said the program allowed regulators to study how reserve management, redemption mechanisms, and payment settlement models function under real-world conditions.

Authorities overseeing the licensing process said proposed stablecoin designs submitted by applicants largely involve tokens backed by either the U.S. dollar or the Hong Kong dollar, though other structures may be reviewed if applicants present clear reserve frameworks and defined use cases. Officials have also discussed the possibility of mutual recognition arrangements with other jurisdictions in the future, allowing stablecoins regulated in Hong Kong to interact with international regulatory frameworks if cross-border oversight agreements are established.

This article has been refined and enhanced by ChatGPT.