HSBC and Standard Chartered Venture Reportedly Among First for Hong Kong Stablecoin Licenses

People familiar with the matter say HSBC and a joint venture led by Standard Chartered will likely be among the first firms to receive stablecoin licenses in Hong Kong within the next two weeks.

According to Tech in Asia, the exact number of licenses and the timeline remain subject to change. A possible approval date is 24 March.

The Hong Kong Monetary Authority (HKMA) said last month it would grant a small number of licenses this month. The regulator reviewed 36 applications.

Hong Kong introduced the Stablecoin Ordinance of Hong Kong last August. The law aims to tighten oversight of cryptocurrencies pegged to fiat currencies. It also seeks to manage risks linked to faster money flows on blockchain networks.

Industry contacts expect the regime to initially focus on tokens pegged to the Hong Kong dollar. Standard Chartered has said it plans to issue a Hong Kong dollar-pegged stablecoin.

Approval for HSBC would be notable. The bank did not participate in the HKMA’s stablecoin issuer sandbox, unlike Standard Chartered.

Featured image credit: Edited by Fintech News Hong Kong, based on image by TravelScape via Freepik

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