Standard Chartered, HSBC Move to the Front of Hong Kong’s Stablecoin Race

HSBC and Standard Chartered will receive Hong Kong’s first stablecoin issuer licenses from the Hong Kong Monetary Authority (HKMA), which reviewed 36 applications and plans to approve only a small batch.

The Stablecoins Ordinance took effect in August 2025, requiring all fiat-referenced stablecoin issuers operating in the city to obtain an HKMA license.

Why it matters:

• Both banks hold note-issuing authority in Hong Kong, a status the HKMA is prioritizing because it signals stronger capital reserves and regulatory oversight.
• Bank-led stablecoin issuance could accelerate institutional and retail adoption of tokenized payments in Hong Kong
• The HKMA’s preference for note-issuing banks sets a global precedent for how regulators gate stablecoin access
• Standard Chartered has separately warned that $500 billion in US bank deposits could shift to stablecoins by 2028

The details:

• A Standard Chartered joint venture with Animoca Brands and Hong Kong Telecommunications Ltd. participated in the HKMA’s sandbox launched in July 2024
• HSBC did not join the sandbox but its status as Hong Kong’s largest bank by assets strengthened its application
• Financial Secretary Paul Chan confirmed in February that only a small number of licenses would be granted initially
• Crypto exchange OSL may also be in the first batch, with approvals expected as early as March 24

The big picture: