HSBC and Standard Chartered among first for HK stablecoin licenses

HSBC and Standard Chartered are expected to be among the first issuers approved under Hong Kong’s new stablecoin licensing regime, with initial decisions possible around March 24.

The Hong Kong Monetary Authority is prioritizing the city’s note-issuing banks for the first batch. That group includes HSBC and Standard Chartered. Under the framework, any local firm that plans to issue a fiat-referenced token must first obtain an HKMA license.

The timetable has not been finalized. In his 2026-27 budget speech last month, Financial Secretary Paul Chan said the government plans to issue the first batch of stablecoin issuer licenses in March. In early February, HKMA Chief Executive Eddie Yue noted that the regulator had received 36 applications.

By March 2026, the total value of stablecoins in circulation exceeded $310 billion, supported by increasing demand for digital payments, DeFi services, and institutional adoption. Tether (USDT) holds around 58% of the market, with Circle’s USDC in second place. The sector has grown about 50% year over year.

The licensing effort is part of Hong Kong’s work to build a regulated market for digital assets and strengthen oversight of stablecoins. A sandbox launched in 2024 allows potential issuers to test token models under supervision. Participants included a joint venture led by Standard Chartered, Animoca Brands and Hong Kong Telecommunications.

Since 2022, Hong Kong has introduced a licensing regime for virtual-asset trading platforms and drafted rules for stablecoin issuance. Supervision of token issuers will focus on governance, reserve management, redemption mechanisms and risk controls.