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HSBC and a joint venture led by Standard Chartered are expected to be among the first companies to obtain Hong Kong’s stablecoin licences within two weeks, according to people familiar with the matter.
The number of licences and timetable had yet to be finalised and remained subject to change, but sources said a possible date was March 24. The two banks declined to comment. The Hong Kong Monetary Authority (HKMA) last month revealed that a small number of stablecoin licences would be granted this month after assessing 36 applications.
The possible approval of established players reflects the city’s stringent approach to regulating stablecoins – cryptocurrencies typically pegged to a fiat currency – since its Stablecoin Ordinance took effect last August.
Hong Kong is seeking to prevent potential destabilisation of the financial system amid the faster flow of money enabled by blockchain technology, while strengthening its bid to become a global digital asset hub.
Industry sources said Hong Kong’s stablecoin licensing regime would likely focus initially on the local currency, with Standard Chartered having already stated plans to issue a Hong Kong dollar-pegged stablecoin.
The potential approval of HSBC, Hong Kong’s largest bank by assets, comes as a surprise given that it did not participate in the HKMA-led stablecoin issuer sandbox, unlike its peer Standard Chartered.
