HSBC and ICBC Seek Hong Kong Stablecoin Licenses

HSBC and ICBC (Asia) have confirmed intentions to apply for stablecoin issuer licenses under Hong Kong’s new regulatory framework, targeting 2026.

This move marks significant entry of major banks into regulated crypto markets, highlighting Hong Kong’s growing role in digital finance.

HSBC and ICBC Eye 2026 Stablecoin Licenses

The Hong Kong Monetary Authority reported that HSBC and ICBC (Asia) intend to apply for stablecoin licenses. This decision aligns with the introduction of Hong Kong’s regulatory framework.

These banking giants are moving towards a regulated crypto involvement, a significant step given their conservative stance. The regime anticipates launching the first licenses in early 2026. As stated by Darryl Chan, Deputy Chief Executive, HKMA, “The first licenses are expected to be issued in early 2026, underscoring a measured and deliberate approach.”

Major Banks Poised to Boost Stablecoin Liquidity

The entrance of major banks into stablecoins could bring significant liquidity and resources. This underscores an upcoming shift in Hong Kong’s financial environment.

The HKMA has projected a cautious rollout with strict requirements. Effects on current crypto assets like ETH and BTC are limited until product launches occur.

Hong Kong’s Regulatory Approach Mirrors Singapore

HKMA’s approach mirrors Singapore’s prior digital asset licensing practices, focusing initially on larger financial institutions. Past U.S. cases show muted immediate market impacts until product launches.

Future outcomes may include increased on-chain stablecoin liquidity if licensed products are approved, enriching Hong Kong’s digital asset landscape. Strict regulatory measures are expected to ensure stability.