Hong Kong to Issue First Stablecoin Licenses — HSBC Among First

The Hong Kong Monetary Authority (HKMA) is preparing to issue the first stablecoin licenses under the new Stablecoins Ordinance. Banking giants HSBC and Standard Chartered are among the leading candidates and may receive approvals as early as late March 2026. This move positions Hong Kong as one of the first major financial hubs where traditional banks will be authorized to legally issue stable-value digital currencies.

36 applications — but only a handful will qualify

Since the Stablecoins Ordinance took effect in August 2025, the HKMA has received 36 formal applications from a diverse range of companies and financial institutions. However, the regulator has adopted a stringent approach to licensing: Financial Secretary Paul Chan confirmed on February 10, 2026 that only "a small number" of applicants would make it through the first selection round.

Industry analysts estimate that three to four companies stand a realistic chance of being included in the inaugural batch. The approval decisions are expected to be announced around March 24, 2026. The regulator attributes this cautious stance to the need to ensure maximum reliability among early market participants.

Why banks first — the HKMA strategy

The HKMA is consciously favoring note-issuing banks when evaluating initial applications. This is not coincidental but rather part of a deliberate strategy: the regulator aims to build confidence in the new asset class by involving institutions with impeccable track records and decades of experience managing fiat currencies.

This approach stands in contrast to models adopted by other jurisdictions, where stablecoin licenses have frequently been granted to crypto-native firms. Hong Kong is betting that the involvement of established banks will boost stablecoin adoption among institutional investors and the general public alike.

Standard Chartered and the Animoca Brands partnership

Standard Chartered's Hong Kong unit has formed a joint venture with Animoca Brands and telecommunications giant HKT to issue a stablecoin backed by the Hong Kong dollar (HKD). This project brings together traditional banking, blockchain expertise, and telecom infrastructure within a single product.

The partnership illustrates that major banks are not merely obtaining licenses as a formality — they are building comprehensive ecosystems around their stablecoins. The HKD-backed stablecoin is expected to find applications in both international settlements and everyday payments within Hong Kong.

Strict reserve and client protection requirements

Hong Kong's regulatory framework imposes a series of rigorous requirements on stablecoin issuers. Reserves must consist exclusively of High Quality Liquid Assets (HQLA), meaning that risky investments or illiquid instruments cannot be used to back the tokens.

Additionally, issuers are required to guarantee par redemption of stablecoins within one business day (T+1). Client assets must be segregated from the issuer's own funds, and reserve composition is subject to mandatory public disclosure. Full compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) controls is also required.

Dual oversight: HKMA and SFC

A distinctive feature of Hong Kong's model is its dual oversight system. The HKMA is responsible for licensing and prudential supervision of stablecoin issuers, while the Securities and Futures Commission (SFC) provides broader governance over virtual assets.

This two-pronged approach ensures comprehensive coverage of all operational aspects, from the financial soundness of issuers to the trading and circulation rules for the tokens themselves. For market participants, this translates to higher compliance costs but also greater legal certainty and stronger investor protection.

What this means for the global stablecoin market

The issuance of the first bank-issued stablecoin licenses in Hong Kong could mark a turning point for the industry. If HSBC and Standard Chartered successfully launch their stable tokens, it will set a precedent for banks in other jurisdictions — from Singapore to London and Tokyo.

For Ukrainian users who actively rely on USDT and other stablecoins for cross-border transfers and value preservation, the emergence of bank-issued stablecoins could open new possibilities. Regulated tokens from well-known banks would potentially offer a higher level of trust and deeper integration with the traditional financial system, ultimately simplifying operations such as exchanging stablecoins for national currencies.