Banking giants HSBC and the Industrial and Commercial Bank of China (ICBC) are preparing to submit applications for stablecoin licenses in Hong Kong. The new regulatory framework came into effect in August.
New Rules for Stablecoins
The Hong Kong Monetary Authority has gained significant control over who can issue fiat-pegged digital assets. Only licensed entities are allowed to promote or distribute such products to retail investors, creating strict parameters for market participants.
Applicants and Market Interest
By the end of August, nearly 80 companies had expressed their intent to apply for licenses. Many of those firms were caught off guard by the strict capital, custody, and compliance standards, resulting in valuation drops when the rules were announced. Regulators described this correction as a sign of serious vetting rather than market weakness.
Global Banks and Their Prospects
For HSBC and ICBC, entering this market could strengthen their positions in Asia's financial capital while signaling institutional confidence in the sector. Their presence would also lend immediate legitimacy to the regime, starkly contrasting with smaller crypto-native issuers who may struggle to meet high entry barriers.
Hong Kong's strategy is focused on pulling stablecoins out of the gray zone, establishing bank-grade supervision, and consolidating its role as a bridge between traditional finance and the digital asset economy.
