HSBC Holdings and a joint venture led by Standard Chartered are reportedly set to become the first authorized stablecoin issuers in Hong Kong.
According to a report by South China Morning Post, the Hong Kong Monetary Authority (HKMA) is expected to grant stablecoin licenses to the two banking groups. Sources familiar with the matter said the institutions are likely to be included in the first batch of approvals, as regulators are prioritizing banks that are already authorized to issue banknotes in the city.
The Hong Kong government currently allows three commercial banks to issue banknotes: local branches of HSBC, Standard Chartered, and Bank of China.
However, the HKMA has not confirmed the identities of any successful applicants. Standard Chartered declined to comment on the report, while HSBC did not immediately respond to requests for comment.
If approved, the licenses would represent a significant step in Hong Kong’s push to become a global digital asset hub, even as neighboring China continues to impose stricter rules around stablecoin issuance.
HKMA targets March launch for first licenses
The South China Morning Post reported that the exact number of licenses and the final timeline remain undecided, though sources suggested March 24 as a possible date for the first approvals.
While still unconfirmed, licenses for HSBC and Standard Chartered would align with earlier reports indicating that the HKMA aims to issue its first stablecoin licenses in March 2026.
Eddie Yue, head of the Hong Kong Monetary Authority (HKMA), said in February that the regulator expects the first batch of stablecoin issuer licenses to include only a “very small number” of companies.
The Stablecoin Ordinance, which came into force in August 2025, established a legal framework for regulating stablecoins in Hong Kong. Under the law, it is illegal to offer or promote unlicensed fiat-referenced stablecoins to retail investors.
In September, the HKMA revealed that it had received 36 applications from institutions seeking licenses to issue stablecoins. Among the reported applicants were HSBC Holdings, Standard Chartered, and Industrial and Commercial Bank of China.
