🔊 HSBC and ICBC Seek Stablecoin Issuer Licenses Under Hong Kong’s New Regulatory Framework
HSBC and the Industrial and Commercial Bank of China (ICBC) have reportedly signaled their intent to apply for stablecoin issuer licenses with the Hong Kong Monetary Authority (HKMA) under the region’s recently enacted regulatory framework. (Cointelegraph, referencing Hong Kong Economic Journal)
While neither bank has confirmed publicly, early reports indicate that both ICBC and Standard Chartered are positioned to receive first-round approvals, potentially giving them a competitive edge in the market.
The new Stablecoin Ordinance, effective August 1, 2025, includes a six-month transition period, during which temporary licenses may be issued. Regulated entities face strict requirements: full reserve backing, redemption support, active Anti-Money Laundering (AML)/KYC compliance, asset segregation, and local operational presence. (Cointelegraph, HKMA reports; Reuters)
Since the ordinance's rollout, some stablecoin-linked stocks have suffered price corrections—seen as a market “healthy adjustment” as stricter-than-expected rules take hold. Regulatory scrutiny also extends to crypto custody standards, with new guidance emphasizing enhanced security and banning smart contracts in cold wallet implementations.
Why It Matters
Institutional Trust: HSBC—one of the world’s largest banks—and ICBC entering the stablecoin licensing process signals growing institutional legitimacy in regulated digital assets.
Regulatory Rigor: The new framework enforces high compliance standards, suggesting Hong Kong is prioritizing security and investor protection.
Market Terrain: With only a few licenses expected initially, major players like HSBC, ICBC, and Standard Chartered will likely command market leadership if approved.
