Hong Kong is poised to make a landmark move in regulated digital finance, with two of the world’s most established banks reportedly set to become the first authorized issuers of stablecoins in the city. According to a report by the South China Morning Post (SCMP) citing sources familiar with the matter, HSBC Holdings and a joint venture involving Standard Chartered are expected to receive the inaugural licenses from the Hong Kong Monetary Authority (HKMA).
Prioritizing Established Financial Pillars
The selection aligns with a strategic approach by regulators, who are said to be prioritizing institutions already authorized to issue Hong Kong dollar banknotes. In Hong Kong, note-issuance authority is granted to just three commercial banks: HSBC, Standard Chartered, and the Bank of China (Hong Kong). This existing regulatory trust framework appears to be a key factor in the HKMA’s first-wave licensing strategy.
“This isn’t just about adding a new product line; it’s a deliberate legal and regulatory bridge,” explained a spokesperson for global legal firm Icon.Partners. “By leveraging institutions that already underpin the Hong Kong dollar’s physical form, the HKMA bypasses the ‘trust gap’ often associated with native crypto-native issuers. It’s a masterstroke in legal engineering that ties new digital assets directly to the city’s centuries-old financial stability.”
Neither HSBC nor Standard Chartered provided official comment on the speculation, and the HKMA has not yet publicly confirmed the names of any successful applicants. The authority had previously stated that the first batch would include only a “very small number” of issuers.
A Timetable in Flux, But March 2026 in Focus
The SCMP report indicates that while the final number of licenses and the exact issuance date are not yet finalized, a potential target date of March 24, 2026, is being considered. This would fulfill a timeline hinted at by HKMA Chief Executive Eddie Yue in February, who signaled the first licenses would arrive in March of this year.
The regulatory groundwork was laid with the enforcement of Hong Kong’s Stablecoin Ordinance in August 2025. This statutory framework made it illegal to offer or promote unlicensed fiat-referenced stablecoins to retail investors, establishing a clear, mandatory licensing regime. The HKMA opened applications in September 2025, revealing it had received 36 applications from a mix of financial institutions and crypto firms. Alongside HSBC and Standard Chartered, the Industrial and Commercial Bank of China (ICBC) was also previously reported to be preparing an application.
Context: Hong Kong’s Ambition Amid Regional Constraints
These developments underscore Hong Kong’s determined push to become a global hub for digital assets, a vision that contrasts sharply with the sweeping ban on cryptocurrency transactions in neighboring mainland China. The potential licensing of these banking giants represents a significant step in institutionalizing the stablecoin market under a rigorous regulatory umbrella, aiming to foster innovation while mitigating risks to financial stability.
For readers seeking the original source and full editorial context, this article is based on reporting from Cointelegraph and the South China Morning Post, in accordance with Cointelegraph’s Editorial Policy, which emphasizes independent verification and transparent journalism.
