HSBC, ICBC Target Stablecoin Licences in Hong Kong
Key Takeaways
Major Banks Enter the Race – HSBC and ICBC have signalled plans to pursue stablecoin licenses under Hong Kong’s newly launched regulatory framework.
Strict Licensing Regime—The Hong Kong Monetary Authority (HKMA) will initially issue only a limited number of licences, requiring high capital reserves, full asset backing, and strict compliance standards.
Shaping Asia’s Digital Finance Hub —The Approval of licenses for leading banks could solidify Hong Kong’s role as a regulated global centre for digital assets while setting a benchmark for other jurisdictions.
HSBC and the Industrial and Commercial Bank of China (ICBC)-the world’s largest bank by assets-are reportedly preparing to apply for stablecoin licences in Hong Kong as the city’s new regulatory framework comes into force.
Overview
A Monday report from the Hong Kong Economic Journal revealed that HSBC and ICBC have indicated plans to seek a stablecoin licence from the Hong Kong Monetary Authority (HKMA). Hong Kong’s long-anticipated stablecoin regulatory framework officially came into force on August 1 2025. This legislation mandates that any stablecoin issuer—whether operating in Hong Kong or issuing Hong Kong dollar-pegged tokens from abroad—must first secure a licence from the HKMA.
The rules are stringent: issuers must maintain at least HK$25 million in paid-up share capital, HK$3 million in liquid capital, plus reserves sufficient to cover a year’s operating expenses. Additionally, stablecoins must be fully backed by segregated, high-quality, liquid assets, safeguarded even in insolvency, with over-collateralisation encouraged to manage volatility and operational risks.
Since the framework took effect, 77 institutions—from banks and tech firms to Web3 startups—have expressed interest in obtaining a licence. However, the HKMA is proceeding cautiously: officials have indicated that only a “few” licences will be issued during the initial phase, likely in early 2026, as regulators seek to safeguard financial integrity and systematically test use cases.
This measured rollout reflects the HKMA’s focus on investor protection, anti-money laundering (AML), cyber-security, and operational resilience. Appearances of interest or even complete applications are not de facto approval guarantees.
HSBC and ICBC: Big Players Circled in the Fray
Among heavyweight applicants, Industrial and Commercial Bank of China (ICBC)—through its Hong Kong subsidiary ICBC (Asia)—has officially submitted its interest, positioning itself as a formidable contender.
HSBC, the largest private bank in Hong Kong, has also signalled strong interest—described by local media as “circling”—though it has not yet filed a formal application. According to reports, HSBC’s application remains uncertain, with insiders suggesting it may not submit it before the end of the month.
Meanwhile, Standard Chartered and Bank of China (Hong Kong) are regarded as leading frontrunners. Standard Chartered has taken a proactive stance—launching a joint venture named Anchorpoint Financial, alongside Animoca Brands and HKT, to pursue a licence. Industry watchers expect these entities to be among the rare few to receive approval in the first wave.
Implications and What Lies Ahead
The selective nature of the HKMA’s rollout reflects Hong Kong’s ambition to emerge as a trusted, well-regulated digital asset hub that offers clarity and oversight amid global competition from jurisdictions like Singapore and the US.
Yet, there are practical trade-offs. The high barriers to entry—compliance-heavy governance, significant capital thresholds, and rigorous KYC/AML requirements—may exclude smaller fintech firms and startups, consolidating the field in favour of large traditional banks and established tech players.
This dynamic could limit market diversity, though proponents argue that it ensures that the early stages of Hong Kong’s stablecoin market are orderly and solvent. More broadly, Hong Kong could serve as a template for digital asset regulation globally. Observers note that if the HKMA’s cautious, phased approach succeeds, other jurisdictions may follow its example.
With HSBC and ICBC among those waiting in the wings, the distribution of just a handful of licences could define early adoption, competitive alignment, and shape a regulated stablecoin infrastructure in Asia.Hong Kong’s stringent stablecoin licensing regime, effective August 1 2025, has triggered intense interest from 77 institutions. However, the regime will initially issue only a few licences, possibly in early 2026.
ICBC (Asia) has confirmed its application, HSBC is reportedly contemplating, and Standard Chartered and BOC HK appear best positioned to be among the first to receive approval. The outcome will significantly impact Hong Kong’s development of a credible digital finance centre.