HKMA to Grant First Stablecoin Licenses in March 2026

The Hong Kong Monetary Authority is poised to grant its first stablecoin issuer licenses as early as March 24, 2026, with HSBC Holdings and a joint venture led by Standard Chartered expected to receive approval in the initial batch. This move marks a pivotal step in Hong Kong's efforts to establish a regulated framework for digital assets, positioning the city as a hub for blockchain innovation amid tightening restrictions from mainland China.

The licenses stem from the Stablecoin Ordinance, enacted in August 2025, which requires any entity issuing fiat-referenced stablecoins in Hong Kong or Hong Kong dollar-denominated tokens to obtain regulatory approval. The ordinance emphasizes transparency, reserve backing, and compliance to ensure stability and protect users. The HKMA has received 36 applications since opening the process last year, but officials are prioritizing established financial institutions, particularly those authorized to issue Hong Kong banknotes, such as HSBC and Standard Chartered. These banks' robust capital bases and oversight systems are seen as key to building market confidence and facilitating safe adoption.

Standard Chartered's involvement centers on...