The Race For Hong Kongs First Stablecoin Licenses Is Almost Over

I’ve been refreshing the Hong Kong Monetary Authority’s register of licensed stablecoin issuers frequently over the past few days, hoping to get a first glimpse of the select names that make it in. Hong Kong is, after all, about to make history when it hands out its first batch of stablecoin licenses.

It won’t be the world’s first regulated stablecoin regime, but it may be the most consequential one yet, given who’s applying and what’s at stake for cross-border finance in Asia. While we all wait, here’s everything you need to know about what’s happening and why it matters.

HSBC and Standard Chartered Linked to HK Stablecoin Licenses

Reports have emerged that HSBC and Standard Chartered are widely tipped to be among the first recipients of a Hong Kong stablecoin license.

Of the two banks, Standard Chartered has cemented an earlier move, forming an HKD stablecoin venture with Animoca Brands and HKT. Animoca Brands, a Hong Kong-based global company specialising in Web3, is said to bring its industry expertise and network into the partnership.

Meanwhile, HKT, leveraging its background in technology, media, and telecoms, will apply its mobile wallet capabilities to develop innovative stablecoin applications for the venture. During the press release, Bill Winters, the Group Chief Executive of Standard Chartered, shared,

“As public chain instruments with proven use cases, stablecoins play a critical role in the overall digital asset ecosystem. Standard Chartered’s bank-grade infrastructure, governance and global reach mean that we are in a good position to materially contribute to the development of the ecosystem being built in Hong Kong and globally.”

Standard Chartered’s sandbox experience and its partnership with Animoca Brands and HKT signal a well-prepared bid.

Notably, the trio have participated in HKMA’s stablecoin issuer sandbox, but HSBC’s name is not in the sandbox participant list. That said, a stablecoin play does tie in neatly with HSBC’s focus on Asian wealth management and cross-border trade, where a regulated stablecoin could meaningfully streamline payments between Hong Kong and mainland China.

With the HKMA expected to issue its decision soon, all eyes will be on whether these banking giants make it into the list.

How We Got Here

Hong Kong’s Stablecoins Ordinance came into effect in August 2025, and it established a rigorous compliance framework for prospective issuers. Key requirements include full reserve backing held in segregated, bankruptcy-remote trust accounts, as well as an obligation to redeem tokens at par value within one business day.

A comprehensive breakdown of the framework, outlined below based on a report by PriceWaterhouseCoopers Hong Kong, was designed to protect against systemic failures that have repeatedly destabilised the broader crypto sector.

Unlike Singapore, which embedded stablecoin provisions within its existing Payment Services Act, Hong Kong created a separate statute.

The scope also differs. Singapore limits coverage to SGD and G10 currencies, while Hong Kong places no restriction on reference currencies. Stablecoins pegged to HKD, USD, EUR, or any other fiat currency all fall within the same framework here.

This open structure matters beyond technicality, as it creates a legitimate pathway for large Chinese firms effectively barred from issuing stablecoins on mainland China. The participation of a JD.com subsidiary in the sandbox is the clearest illustration of that logic at work.

The full list of HKMA’s stablecoin issuer sandbox participants as of July 2024 is found below:

As of February 2026, the HKMA has disclosed that it is reviewing 36 issuer applications under the Ordinance. HKMA Chief Executive Eddie Yue has indicated that the central bank hopes to reach licensing decisions by March 2026.

Looking At The Bigger Picture

It goes without saying that the stablecoin regulatory landscape has evolved dramatically over the past 12 months. Landmark developments such as the GENIUS Act in the United States and the MiCA stablecoin framework in Europe have also laid a strong foundation, paving the way for broader adoption and new stablecoin launches across other regions.

What sets Hong Kong apart is the clarity and efficiency under the HKMA. HKMA’s approach provides a higher degree of legal and regulatory certainty. It built a dedicated framework from scratch, is in the final stages of reviewing 36 applications, and is soon moving towards decisions, all within months of the Stablecoins Ordinance taking effect in August last year.

For applicants, that pace matters as much as the rules that are in place.

Adding to the momentum, recent data from Visa’s on-chain analytics has indicated that adjusted stablecoin transaction volume has reached a staggering $13 trillion over the past 12 months, too.

This growth underscores stablecoins’ rapid shift from a niche crypto tool to a mainstream payments and settlement rail.

The Practical Case for Hong Kong stablecoins

Stablecoins in Hong Kong are primarily a payments and settlements story. One of its sandbox participants, which is JD.com’s subsidiary, is targeting supply chain finance and cross-border payment efficiency.

Meanwhile, the Standard Chartered-Animoca-HKT trio are exploring Web3 payments, telecom billing and metaverse commerce. Finally, RD InnoTech is focused on digital asset trading and cross-border trade settlement.

Friction is the common thread all three sandbox use cases share. Cross-border payments between Hong Kong and mainland China or Southeast Asian trading partners tend to be slow and expensive. A regulated, bank-backed HKD stablecoin could settle those transactions in real time without correspondent banking intermediaries.

For businesses moving goods and capital across the region, that is a meaningful efficiency gain.

For the everyday Hong Konger, the near-term impact is still tangible. Anyone who regularly sends money overseas or uses a mobile wallet could stand to benefit from faster and cheaper transactions if stablecoin rails gain traction in daily commerce.

HKT’s involvement in the consortium hints at this ambition, possibly integrating stablecoin payments into the kind of telecoms and mobile wallet infrastructure that ordinary consumers already use.

Hong Kong’s Stablecoin Moment Could Set the Tone For Asia

The first names on Hong Kong’s stablecoin issuer register will carry more weight than a licensing milestone, as its members could define how the world’s next financial infrastructure takes shape. Get it right, and Hong Kong will have demonstrated that stablecoins can thrive at the intersection of rigorous regulation and real-world utility.

For a city that has spent years showcasing its relevance as a global financial centre, a well-executed stablecoin regime could be a meaningful push for how Hong Kong positions itself in the next era of cross-border finance.

Featured image edited by Fintech News Hong Kong based on images by user17364411 and naratrip on freepik