HSBC and Standard Chartered Set to Receive Hong Kong's First Stablecoin Licenses
Hong Kong's monetary authority is preparing to issue its first stablecoin licenses to HSBC Holdings plc and a joint venture led by Standard Chartered Bank (Hong Kong) , according to multiple sources familiar with the process. The Hong Kong Monetary Authority (HKMA) is expected to announce the inaugural batch as early as March 24, 2026 , following the conclusion of China's Two Sessions parliamentary meetings [1][2]. A Selective Licensing Process The road to this milestone began in July 2024, when the HKMA named three sandbox participants to trial stablecoin issuance under supervised conditions: JINGDONG Coinlink Technology Hong Kong Limited ; RD InnoTech Limited ; and a consortium comprising Standard Chartered Bank (HK), Animoca Brands , and HKT [3]. The sandbox phase ran through 2024 and into 2025, providing regulators with operational data on issuance mechanics, reserve management, and compliance protocols. The legislative framework followed swiftly. On May 21, 2025 , Hong Kong's Legislative Council passed the Stablecoins Bill, and the resulting Stablecoins Ordinance (Cap. 656) took effect on August 1, 2025 [1]. With the law in place, the HKMA opened formal applications. By September 30, 2025 , the regulator had received 36 applications from a pool of more than 70 expressions of interest [2]. | Milestone | Date | | | | | HKMA sandbox participants announced | July 2024 | | Stablecoins Bill passed (LegCo) | May 21, 2025 | | Stablecoins Ordinance takes effect | August 1, 2025 | | Formal application deadline | September 30, 2025 | | Total applications received | 36 | | Total expressions of interest | 70+ | | Expected first license announcement | March 24, 2026 | Who Makes the Cut HKMA Chief Executive Eddie Yue Wai man told the Legislative Council in February 2026 that evaluations are focusing on practical use cases, risk management, anti money laundering protocols, and collateral backing [2]. He signaled a deliberately narrow first batch: "Only a very small number of licenses will be granted initially." Sources indicate three to four entities will be included in the first wave. HSBC, the city's largest bank by assets, is widely expected to receive a standalone license. Standard Chartered's path runs through Anchorpoint Financial Limited , a joint venture formally established on August 8, 2025 , with partners Animoca Brands and HKT [1][3]. Crypto exchange Gate.io , which launched its USD denominated institutional stablecoin USDGO in February 2026, is also considered a likely candidate [2]. Notably absent from the expected first batch are several prominent names. RD Technologies , the startup founded by former HKMA Chief Executive Norman Chan Tak lam that raised $40 million in funding, was a sandbox participant but is not expected in the first wave [1]. LianLian Digital and Ant Group , which suspended its Hong Kong stablecoin plans in 2025 amid Beijing policy signals, are also reportedly not included [2]. The Regulatory Architecture The Stablecoins Ordinance establishes a rigorous framework for fiat referenced stablecoin (FRS) issuers. Any entity issuing a specified stablecoin in Hong Kong, or issuing an HKD pegged stablecoin from outside the territory, must be licensed [1]. Only stablecoins from HKMA licensed issuers may be offered to retail investors. The prudential requirements are substantial. Issuers must maintain 1:1 reserve backing at par value at all times , with the HKMA expecting a degree of over collateralization above the 1:1 floor [1]. Reserves must be held in high quality, high liquidity assets: bank deposits of no more than three months, government debt of no more than one year, overnight reverse repurchase agreements, or eligible investment funds. Segregated custody under an independent trustee at a licensed bank is mandatory. Non bank applicants face a minimum paid up share capital of HK$25 million . Senior management, including the chief executive and stablecoin manager, must reside in Hong Kong [1]. Weekly attestations to the HKMA and regular external auditor reviews round out the compliance obligations. Beijing's Shadow The composition of the expected first batch carries a geopolitical subtext. No mainland Chinese technology companies appear on the shortlist. Both Ant Group and JD.com suspended their stablecoin plans in Hong Kong during 2025, and Beijing has since tightened scrutiny of overseas digital asset activities, explicitly prohibiting the issuance of unlicensed RMB pegged stablecoins [2]. Jason Atkins , Chief Commercial Officer of Hong Kong based market maker Auros , offered a candid assessment of the dynamic: "We read what they want us to read." The remark underscores the widely held view that back channel conversations between Beijing and Hong Kong shape the boundaries of the city's crypto liberalization, even as the HKMA pursues a technically independent licensing process. Market Implications Hong Kong Financial Secretary Paul Chan confirmed the March 2026 timeline in his 2026 27 Budget speech, characterizing the city's approach as "proactive yet prudent" [4]. Mary Huen , Standard Chartered's Hong Kong chief, has positioned the bank's involvement in broader strategic terms: "Stablecoins will play an important role in building a sustainable digital asset ecosystem in Hong Kong." HSBC CEO Georges Elhedery said in early March 2026 that the bank holds a positive attitude toward Hong Kong's stablecoin market and has maintained active communication with the HKMA [1]. The granting of licenses to established banking institutions rather than crypto native startups signals a regulatory philosophy that prioritizes systemic stability over innovation speed, a pattern consistent with Hong Kong's role as a bridge between China's financial system and global capital markets. References [1] Bloomberg, "HSBC, StanChart Among First to Get HK Stablecoin Licenses," March 2026. https://www.bloomberg.com/news/articles/2026 03 13/hsbc stanchart among first to get hk stablecoin licenses …