In Hong Kong, stablecoins could come under the direct influence of big banks. HSBC and Standard Chartered are preparing to play a central role in a system strictly supervised by the authorities. Behind this development, a dual ambition is emerging: to regain control of a key crypto market and impose a regulated model in the face of past abuses. Hong Kong is advancing its pawns in a global battle where traditional finance and blockchain are now converging.
In brief
- Hong Kong is taking a major turn by entrusting stablecoins to international banking institutions.
- HSBC and Standard Chartered are among the first players to obtain a license within a strict framework.
- A demanding selection process, marked by 36 applications and priority given to established players.
- This development could reshape the balance between traditional and native crypto players.
HSBC and Standard Chartered on the front line
Hong Kong is preparing to take a decisive step in the regulation of stablecoins with the imminent granting of licenses to major financial institutions. HSBC and Standard Chartered are among the best positioned players in this process led by the Hong Kong Monetary Authority (HKMA).
The information available indicates that 36 companies have officially submitted their application, illustrating the attractiveness of the system. The selection is based on strict criteria, favoring structures capable of ensuring compliance and stability in an environment still under construction.
In this context, several important elements emerge:
- The HKMA oversees a demanding regulatory framework intended to govern the issuance of stablecoins;
- Licenses should be allocated to a limited number of actors, with priority given to established financial institutions;
- Standard Chartered has previously participated in a regulatory sandbox, notably alongside Animoca Brands and HKT;
- The projects envisaged concern stablecoins backed by fiat currencies, including the Hong Kong dollar;
- The process aims to guarantee a high level of compliance, particularly in terms of anti-money laundering.
This first wave of licenses marks a key step in the structuring of the local crypto market, with direct involvement of the traditional banking sector.
An assumed strategy: managing flows and structuring the market
Beyond the selection of players, Hong Kong has a clear line: structure the stablecoin market around a robust regulatory framework. Thanks to the on-chain data collected, the authorities seek to limit the risks linked to the speed of blockchain transactions and to prevent possible financial imbalances. As the sources indicate, this vigilance is part of an objective of stability, in the face of instruments capable of moving capital at high speed. The legal system, which came into force a few days ago, strictly regulates the issuance and management of these assets.
This orientation contrasts with that of mainland China, where certain activities linked to cryptos are prohibited. Hong Kong is taking a more open approach, while maintaining tight control over infrastructure.
The choice to favor banks fits into this logic: their capitalization, their regulatory experience and their credibility are seen as guarantees for large-scale deployment. This dynamic expresses a global ambition to position the city as a global crypto hub since 2022.
As the first licenses are issued, the market could move towards increased dominance of stablecoins issued by financial institutions. This shift calls into question the future of native crypto players and the balance between innovation and regulation. Hong Kong, by focusing on close integration between traditional finance and blockchain, is opening an intermediate path whose effects could quickly extend beyond its borders.
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