HSBC and Standard Chartered are expected to receive the first licenses to issue stablecoins in Hong Kong, positioning two of the city’s most prominent banks at the center of a major push to develop a regulated digital-asset ecosystem.

Authorities in Hong Kong are preparing to grant the initial approvals under a new licensing regime overseen by the Hong Kong Monetary Authority, which regulates stablecoins tied to fiat currencies such as the Hong Kong dollar.

The move is widely seen as a significant step in the city’s effort to strengthen its position as a global hub for digital finance.

The licenses are expected to be issued to a very limited number of institutions in the first round.

HSBC and a consortium led by Standard Chartered are widely viewed as frontrunners, reflecting their longstanding role in the city’s financial system and their authorization to issue banknotes locally.

Regulators have not formally confirmed the recipients, and both banks have declined to comment publicly on the reported plans.

Hong Kong introduced its comprehensive stablecoin regulatory regime in 2025, requiring any issuer of a fiat-referenced digital currency to obtain official authorization before offering or promoting the product to investors.

The framework establishes strict oversight rules, including requirements for full asset backing, robust risk management, and compliance with anti-money-laundering standards.

Interest in the licensing program has been intense across the global financial sector.

Authorities have previously disclosed that dozens of institutions applied to issue stablecoins under the new system, reflecting the rapid institutionalization of digital currencies and the growing role of regulated banks in the sector.

Stablecoins are digital tokens designed to maintain a consistent value by being backed by traditional assets such as government currency or reserves.

They are increasingly used in digital payments, trading, and financial infrastructure, particularly within the broader cryptocurrency ecosystem.

Hong Kong officials have emphasized that a tightly controlled rollout is intended to balance innovation with financial stability.

By prioritizing large, established institutions in the first phase, regulators aim to build confidence in the emerging market while ensuring that the underlying digital assets remain fully supported by credible financial infrastructure.

If confirmed, the approvals would mark a milestone in Hong Kong’s digital-finance strategy and could accelerate the development of Hong Kong dollar-linked stablecoins designed for payments, trading, and cross-border financial services throughout the Asia-Pacific region.