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Hong Kong regulators received 36 stablecoin license applications but plan to approve only a few issuers.
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HSBC and Standard Chartered are expected among the first licensed HKD stablecoin issuers.
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The licensing framework builds on a sandbox program launched in 2024 to test stablecoin infrastructure.
Hong Kong regulators are preparing to issue the city’s first stablecoin issuer licenses, with HSBC and Standard Chartered expected among the initial recipients. The Hong Kong Monetary Authority is reviewing dozens of applications under the new framework. According to reports, the first approvals could arrive around March 24 as the government advances its digital asset strategy.
HKMA Reviews Dozens Of Stablecoin Applications
Hong Kong introduced the licensing regime to regulate Hong Kong dollar-backed stablecoins. Under the rules, any issuer must obtain authorization from the Hong Kong Monetary Authority.
According to HKMA Chief Executive Eddie Yue, regulators received 36 applications under the new framework. Earlier, more than 70 companies expressed interest. However, authorities plan to grant only a limited number of initial licenses.
Regulators aim to ensure projects demonstrate clear use cases and sustainable business models. HSBC and Standard Chartered may join the first group. Both banks already issue Hong Kong’s physical banknotes.
The Hong Kong Monetary Authority reportedly favors institutions with strong capital reserves. Authorities also cited established safety records as key considerations. Meanwhile, Financial Secretary Paul Chan said during his 2026-27 budget speech that the first licenses could arrive in March.
Banks Positioned At Center Of Stablecoin Rollout
The potential approval would place HSBC Holdings Plc and Standard Chartered Plc at the center of Hong Kong’s stablecoin launch. Both institutions already operate within the city’s regulated banking system.
According to Bloomberg sources, regulators prefer bank-led stablecoin issuers to encourage broader market adoption. Authorities also believe banks can manage financial risks more effectively.
Additionally, strict anti-money laundering requirements shape the licensing framework. These rules align with Hong Kong’s implementation of Basel crypto standards for banks. Neither bank confirmed the reports publicly.
Standard Chartered declined to comment, while HSBC did not respond to inquiries. Meanwhile, the Hong Kong Monetary Authority stated it does not comment on market speculation.
Sandbox Program Tested Stablecoin Infrastructure
The licensing regime builds on earlier experiments conducted through Hong Kong’s stablecoin sandbox program. Regulators launched the initiative in 2024. Several companies participated in the testing phase.
Participants included a joint venture involving Standard Chartered, Animoca Brands, and Hong Kong Telecommunications. Other participants included JD Technology, linked to Chinese e-commerce group JD.com. Startup RD Technologies also joined the sandbox program.
RD Technologies was founded by a former HKMA chief executive and raised $40 million in funding last year. Hong Kong began implementing its digital asset strategy in 2022. The framework includes licensing rules for crypto exchanges and stablecoin issuers.
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