HSBC and Standard Chartered are set to be among Hong Kong's first licensed stablecoin issuers, according to Bloomberg , with the Hong Kong Monetary Authority (HKMA) expected to prioritize institutions already authorized to issue banknotes in the city. Both banks declined to comment, and the HKMA said it does not comment on market rumours.
The move would mark the culmination of a regulatory process that has been years in the making. The HKMA received 36 formal applications under the Stablecoins Ordinance, which took effect in August 2025. The number of applicants eligible for the first batch may be reduced to just three or four, with authorities repeatedly signaling that initial approvals would be tightly controlled. Financial Secretary Paul Chan confirmed as recently as February 10 that the government planned to issue "only a small number" of licenses in the first batch.
The preference for bank-led issuers is deliberate. Per Bloomberg's sources, the HKMA views well-capitalized banks as both safer issuers and more effective drivers of mainstream adoption. Standard Chartered already has skin in the game: its Hong Kong unit formed a joint venture with Animoca Brands and telecoms firm HKT to apply for a Hong Kong dollar-backed stablecoin license, having also participated in an HKMA sandbox for prospective stablecoin issuers in 2024.
The broader stablecoin market now stands at roughly $300 billion, with Citi projecting it could grow to between $1.9 trillion and $4 trillion. Standard Chartered CEO Bill Winters has described Hong Kong's stablecoin push as potentially laying the groundwork for a new era of digital trade settlement.
Hong Kong is notable as one of the first jurisdictions to require stablecoin reserves to be backed exclusively by High Quality Liquid Assets — ultra-safe, short-term holdings convertible to cash on demand. The framework requires T+1 par redemptions, client asset segregation, AML/CFT controls, and public reserve disclosures. Oversight is split between the HKMA, which licenses issuers, and the Securities and Futures Commission (SFC), which governs the broader virtual asset market.
The approvals come as competing financial centers move to establish their own stablecoin frameworks. The US is advancing stablecoin legislation through Congress, while the EU has rolled out its Markets in Crypto-Assets (MiCA) regulation.
Hong Kong's decision to put its note-issuing banks front and center in its inaugural cohort signals a deliberate bet that institutional credibility, not innovation speed, will be the defining factor in its digital finance strategy.
