HSBC and Standard Chartered Expected to Obtain Hong Kong Stablecoin Licenses, Traditional Banks Accelerate Blockchain Deployment

Gate News, March 16 — Hong Kong’s financial regulatory framework continues to advance. Since the implementation of the Stablecoin Ordinance in August 2025, strict requirements have been established for institutions wishing to issue stablecoins, including transparency, reserve backing, and compliance obligations. Reports indicate that 36 institutions have submitted applications, with the initial approval process favoring established financial institutions. HSBC and Standard Chartered are expected to be among the first to receive approval. This will lay the foundation for launching Hong Kong’s stablecoin ecosystem and strengthen regulatory confidence.

Standard Chartered plans to issue Hong Kong dollar-backed stablecoins through a joint venture with blockchain investment firm Animoca Brands and Hong Kong Telecom (HKT). This reflects traditional financial institutions actively exploring blockchain technology and promoting the integration of digital assets and financial services. The stable value of stablecoins facilitates quick cross-border transfers and payment settlements while reducing cryptocurrency price volatility risks. Under Hong Kong’s regulatory environment, institution-issued stablecoins can also support more efficient digital settlements and cross-border financial innovation.

Although bank-issued stablecoins are expected to enhance compliance and trust, they also raise industry debates. Some observers believe that excessive institutionalization could lead to centralization within blockchain systems. Nonetheless, Hong Kong’s stablecoin framework demonstrates ambitions to become a global hub for digital asset innovation. With major financial players like HSBC and Standard Chartered joining, the adoption of blockchain technology by Asian financial institutions may accelerate and potentially set an example for regulatory developments in other global financial centers.

This policy and regulatory development not only focus on financial compliance but also send a clear signal to crypto users and institutional investors: the role of stablecoins in the future digital economy is increasing. The participation of mature financial institutions is expected to promote healthy growth of the entire ecosystem and provide investors with safer, more reliable digital asset services.