HSBC and Standard Chartered obtain licenses, Hong Kong dollar stablecoins expected to be issued within the year

Writing: Finance Mayflower

Abstract

After nearly nine months, the list of Hong Kong’s first batch of stablecoin issuers has been released, with two Hong Kong note-issuing banks making the cut.

In the afternoon of April 10, news on the official website of the Hong Kong Monetary Authority (hereinafter referred to as the “HKMA”) said that Dockpoint Financial Technology Limited (hereinafter referred to as “Dockpoint FinTech”) and Hongkong and Shanghai Banking Corporation Limited (hereinafter referred to as “HSBC”) successfully obtained licenses as Hong Kong stablecoin issuers. The license numbers are FRS01 and FRS02, respectively.

Among them, Dockpoint FinTech is a company jointly established by Standard Chartered Bank (Hong Kong) Limited (hereinafter referred to as “Standard Chartered Bank”) and Hong Kong Telecommunications and An Group.

On August 1, 2025, Hong Kong officially issued the “Stablecoin Ordinance,” setting up a licensing system for stablecoin issuers pegged to fiat currencies. From establishing the stablecoin licensing system to issuing the first batch of licenses, it took nearly nine months.

“This marks that the implementation of Hong Kong’s stablecoin regulatory framework has entered a new stage.” On the same day, the HKMA Chief Executive Officer, Yu Weiwun, disclosed in a post that both licensed issuers plan, in the first phase, to issue Hong Kong dollar stablecoins first, and it is expected that compliant Hong Kong stablecoins will be rolled out gradually from mid-year to the second half of this year.

Also, according to disclosures by the HKMA, the initial application scenarios for licensed parties cover cross-border and local elements, including digital asset trading, etc. In the future, based on commercial considerations, market conditions, and the development of international regulation, they will expand their partner network, application scenarios, and the geographic regions covered by their business.

In addition, the HKMA will maintain communication with other applicants and market participants, and continue to review applications. However, Yu Weiwun emphasized in the above-mentioned article that “licensing has a fairly high threshold. Even if licenses are issued again in the future, the total number of licenses will remain very limited.”

In February this year, Yu Weiwun previously disclosed to the media that the HKMA received 36 stablecoin license applications, aiming to grant the first batch of licenses in March. At the same time, he emphasized that the number of licenses in the first round will definitely not be large, with stability as the goal.

Judging from the results of the licensing, the license issuance timing was slightly later than expected, and only two institutions successfully obtained licenses—slightly fewer than the market’s previous expectation of around three.

In the article published on April 10, Yu Weiwun provided a detailed introduction to the main considerations for license approval, the issuer’s application scenarios and development directions, risk management measures, and arrangements for subsequent work.

“The HKMA has always emphasized that licensing has a fairly high threshold.” Yu Weiwun said that during the approval process, two aspects were mainly considered: (1) whether the applicant has sufficient risk management capabilities and experience, and complies with relevant regulations in Hong Kong and other regions; and (2) whether the applicant can propose specific application scenarios and feasible business plans and development plans.

“Among the 36 applications, Dockpoint and HSBC, on the basis of meeting the legal requirements for licensing, demonstrated their ability to manage risks in a steady and prudent manner, and proposed definite application scenarios and future development plans. Therefore, they were granted licenses,” Yu Weiwun said.

Regarding application scenarios and development directions, Yu Weiwun said that both licensed issuers plan to initially issue Hong Kong dollar stablecoins in the first phase, encouraging issuers to explore and expand applications related to the real economy, including cross-border payments, local payments, tokenized asset trading, and innovative applications.

“Both licensed issuers have banking backgrounds and have participated in HKMA’s experiments related to central bank digital currency (CBDC) and tokenized deposits. They have a fairly in-depth understanding of the functions and application scenarios of various digital currencies, which is conducive to exploring the various possibilities of ‘future payments.’ One issuer, together with local telecommunications, payments, and digital asset enterprises, has formed a consortium, enabling compliant stablecoins to achieve synergy,” Yu Weiwun said.

In terms of risk management, Yu Weiwun mentioned that licensed issuers must, in accordance with regulatory requirements, implement prudent and comprehensive policy and risk management measures in reserve asset management and asset security, price stability mechanisms, redemption arrangements, technology security, etc., and establish a robust anti-money-laundering system. This includes, in day-to-day operations, detecting suspicious transactions and taking corresponding follow-up actions through blockchain monitoring tools, and verifying the identity of stablecoin holders either by their own means or through reliable third-party partner cooperation, to ensure the effectiveness of monitoring measures. “In their applications, both licensed issuers demonstrated their ability to comply with and implement these measures.”

Looking ahead, Yu Weiwun said that, according to the two institutions’ current business plans, Hong Kong-regulated stablecoins are expected to be rolled out gradually from mid-year to the second half of this year.

“For the future issuance of additional licenses and the timing, we have an open but cautious attitude, and there is no clear preference at this stage.” Yu Weiwun emphasized, “Considering the risks involved in the issuance business, the protection of users, the market’s capacity, and long-term development, licensing has a fairly high threshold. Even if licenses are issued again in the future, the total number of licenses will also be very limited.”

At around noon on April 10, media reports said that the HKMA would announce the list of stablecoin issuers in the afternoon. As a result, stablecoin-related concept stocks on both the Hong Kong stock market and A-shares surged collectively.

Among them, Guotai Junan International (1788.HK) in Hong Kong stocks saw a gain of nearly 50% at one point. During trading, Shenwan Hongyuan Hong Kong (0218.HK) and Yunfeng Financial (0367.HK) rose by more than 28% and 16%, respectively; for A-shares, Sifang Jingchuang (300468.SZ) rose by more than 17% at one point, Yuyin Shares (002177.SZ) hit the daily trading limit, and Lakala (300773.SZ) rose by more than 7%.

“Granting stablecoin issuer licenses is an important milestone in the development of Hong Kong’s digital assets.” Yu Weiwun said, “I expect issuers to carry out their businesses according to their plans. While managing risks under control, they should actively explore development opportunities, promote the application of compliant stablecoins, address pain points in financial and economic activities, create value for residents and enterprises, and help drive the healthy development of Hong Kong’s digital assets.”