Hong Kong Caps Stablecoin Licenses as Standard Chartered Leads the Pack

Hong Kong slams the brakes on stablecoin proliferation—issuing just a handful of licenses as global banks jockey for position.

Standard Chartered emerges as early frontrunner in the regulated stablecoin race, signaling institutional appetite for dollar-pegged crypto.

The city’s financial watchdog takes a quality-over-quantity approach, favoring established players over crypto-native startups. Looks like someone learned from the 'move fast and break things' era—better late than never.

This isn’t just regulation—it’s curation. Hong Kong wants compliant digital dollars, not wild west stablecoins that blow up faster than a leveraged degen trade.

One cynical take? Banks love stablecoins for the same reason they love offshore accounts—new ways to move money, same old fees. Plus ça change.

TLDR:

• Hong Kong has officially begun processing stablecoin license applications under its new regulatory framework.
• The Hong Kong Monetary Authority plans to approve only three to four licenses in the first phase.
• A total of 77 firms have submitted applications since the rules took effect in early August.
• Standard Chartered and Bank of China are leading candidates for early approval due to their strong financial profiles.
• HSBC and ICBC have also shown interest but are less likely to be approved in the initial round.

Hong Kong is limiting the first batch of stablecoin licenses, despite strong interest from 77 global firms and banks. The Hong Kong Monetary Authority (HKMA) confirmed it will issue only three to four licenses initially. Standard Chartered and Bank of China are positioned as early frontrunners under the new regulatory regime.

Hong Kong Limits Initial Stablecoin Licenses

The HKMA has officially started reviewing applications under Hong Kong’s new stablecoin ordinance, effective since August 1, 2025. A total of 77 firms submitted license requests in the first month of the regime. However, only a small number of licenses will be approved in the initial phase.

Authorities confirmed they aim for a slow and steady rollout to ensure quality and compliance. According to officials, applicants must meet anti-money laundering and counter-terrorism financing requirements. They must also maintain strong reserves and transparent redemption frameworks.

“Only applicants demonstrating high standards in risk management will advance,” a source familiar with the HKMA’s process said. By issuing just a few licenses, Hong Kong ensures regulatory precision and sectoral confidence. This method also reduces systemic risk in the growing digital asset market.

Standard Chartered, BOC Take the Lead

Standard Chartered and Bank of China have emerged as top candidates in Hong Kong’s stablecoin licensing process. Both firms have reportedly met Core eligibility benchmarks outlined by the HKMA. Industry insiders say their global infrastructure and capital strength work in their favor.

HSBC and ICBC have also expressed interest but are less likely to secure early approval. The HKMA appears to prefer institutions with direct exposure to Hong Kong’s financial system. Moreover, those with prior experience in regulated digital assets may gain further advantage.

The licensing law applies to all stablecoin issuers tied to the Hong Kong dollar or targeting Hong Kong users. By narrowing the pool, authorities encourage stability, innovation, and international trust in the sector. This strategy also positions Hong Kong as a credible regional leader in crypto oversight.

First Approvals Could Slip Into 2026

Despite the law’s activation, the HKMA suggests approvals might not arrive until early 2026. This delay highlights Hong Kong’s deliberate approach to stablecoin regulation. Officials prioritize strong frameworks over market speed.

The new law mandates that all eligible issuers must secure licenses before offering HKD-linked stablecoins. It applies equally to overseas firms seeking access to the Hong Kong market. Compliance will be strictly monitored during the approval and post-licensing stages.

Hong Kong intends to build a safe, transparent digital currency system through this measured rollout. Although global competition intensifies, its controlled start may foster long-term trust. Hong Kong continues to reinforce its financial leadership in Asia.