HSBC, Standard Chartered to get stablecoin licenses in Hong Kong
The city has been pushing ahead with ambitions to become a crypto hub through a series of regulatory measures first announced in 2022
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[HONG KONG] HSBC Holdings and Standard Chartered are set to be among the first licensed stablecoin issuers in Hong Kong, giving two of the city’s note-issuing banks a central role in the government’s effort to become a digital-asset hub.
The two banks will be in the first batch of approvals as authorities prioritise institutions already authorised to issue banknotes, according to sources familiar with the matter.
The Hong Kong Monetary Authority (HKMA) prefers bank-led stablecoin issuers because they are well capitalised and can provide greater safety while promoting broader adoption, the sources said.
Standard Chartered declined to comment, and HSBC did not immediately respond to a request for comment. The HKMA said that it does not comment on market rumours.
The city’s de facto central bank said last month that the first stablecoin licenses could be issued as early as March and that it had received 36 applications.
News of the banks’ impending approval was previously reported by the South China Morning Post.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Hong Kong has been pushing ahead with ambitions to become a crypto hub through a series of regulatory measures first announced in 2022. In addition to introducing a license for cryptocurrency exchanges, the government announced plans to license issuers of stablecoins, a type of cryptocurrency designed to maintain a consistent value with backing from another asset, typically US dollars.
Hong Kong requires any issuers of Hong Kong dollar-backed stablecoins to be licensed by the HKMA.
In 2024, the government initiated a sandbox for stablecoin issuers. Participants included a Standard Chartered joint venture with Animoca Brands and Hong Kong Telecommunications, as well as Jingdong Coinlink Technology and RD InnoTech.
Hong Kong policymakers have said only a “small number” of licenses would initially be approved to ensure stablecoins have real-world use cases, and that issuers maintain sustainable business models with strong regulatory compliance. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
‘Boring’ is the new black: The stars are aligning for a Singapore stock market revival
Near sell-out launches in March boost developer sales to 1,300 units after four slow months
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
Genting Singapore’s Lim Kok Thay receives S$7.5 million pay package for FY2025
