Two of the World’s Largest Banks Target Stablecoin Licenses in Hong Kong
Hong Kong’s experiment with becoming a global stablecoin hub is beginning to attract heavyweight interest.
Two banking giants – HSBC and the Industrial and Commercial Bank of China (ICBC) – are reportedly preparing license applications under the city’s new framework, which came into force in August.
Hong Kong’s Big Bet on Stablecoins
The new rules give the Hong Kong Monetary Authority sweeping control over who can issue fiat-pegged digital assets. Only licensed entities can promote or distribute such products to retail investors, and officials have warned that approvals will be scarce at first. Analysts believe Standard Chartered and ICBC are likely to secure early approvals, setting the tone for how the regime takes shape.
A Market Flooded With Applicants
Interest has been intense: by the end of August, nearly 80 companies had expressed intent to apply. Yet many of those firms were caught off guard by the strict capital, custody, and compliance standards, with some suffering double-digit valuation drops when the rules were announced. Regulators described the correction as a sign of serious vetting rather than market weakness.
Stablecoins are only the starting point. In parallel, the Securities and Futures Commission has rolled out new guidance on digital asset custody, banning smart contract-based cold storage and mandating stronger security practices. Taken together, the measures mark Hong Kong’s attempt to establish itself as a global standard-setter rather than a regulatory outlier.
Global Banks Step In
For HSBC and ICBC, entering this market could strengthen their positions in Asia’s financial capital while signaling institutional confidence in the sector. Their presence would also give the regime immediate legitimacy – a stark contrast to smaller crypto-native issuers who may struggle to clear the high bar of entry.
Whether these applications are approved or not, Hong Kong’s strategy is clear: it wants to pull stablecoins out of the gray zone, bring them under bank-grade supervision, and cement its role as the bridge between traditional finance and the digital asset economy.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
