HSBC and ICBC Lead Hong Kong Stablecoin Licensing Efforts
HSBC and the Industrial and Commercial Bank of China (ICBC), two of the largest banks in the world, are preparing to apply for stablecoin licenses in Hong Kong.
The news comes as the Hong Kong Monetary Authority (HKMA) begins enforcing its Stablecoin Ordinance, a new set of regulations that took effect on August 1, 2025.
The move could grant HSBC and ICBC an early strategic lead, as the HKMA has hinted that only a select few licenses will be issued initially. According to Hong Kong Economic Journal, Standard Chartered and ICBC are also among the earliest contenders for approval.
Strict New Rules Shake the Market
Hong Kong’s stablecoin regulatory framework has set one of the highest compliance standards globally.
Key points include:
- A ban on the offering or promotion of unlicensed fiat-backed stablecoins to retail investors.
- Stringent issuer scrutiny and reporting requirements.
The rollout has already sent shockwaves across the stablecoin market. Several issuers saw double-digit depreciation, with some tokens losing over 20% in a single day after the law came into effect.
Despite the volatility, regulators argue the correction is healthy, creating a safer and more sustainable foundation for the industry.
Also Read : SEC and CFTC Approve Spot Crypto Trading on U.S. Exchanges
Hong Kong Expands Oversight: From Stablecoins to Custody
Beyond stablecoins, Hong Kong regulators are tightening rules on crypto custody.
The Securities and Futures Commission (SFC) recently imposed new custody standards, including:
- A ban on using smart contracts in cold wallets.
- Stricter security protocols for custodians.
The SFC has also issued fraud alerts urging investors not to be misled by hype and speculation surrounding stablecoins.
Why HSBC and ICBC Want In
HSBC and ICBC’s early push into licensed stablecoins could provide a major competitive advantage.
- They would be positioned as trusted issuers in Asia’s fast-growing digital asset economy.
- It would bolster their institutional credibility for future offerings in tokenized assets and blockchain finance.
With 77 institutions reportedly ready to apply for stablecoin licenses, the competition will be fierce. If successful, HSBC and ICBC could emerge as key institutional guardrails for stablecoins in Asia’s regulated crypto markets.
