HSBC and Standard Chartered Are Set to Receive Hong Kong’s First Stablecoin Licenses as the World Moves to Regulate Digital Money

Two of the world’s most recognized banking names are on the verge of becoming the first institutions to hold formal stablecoin licenses in Hong Kong, a milestone that arrives as governments across Asia, the Middle East, Europe, and the United States simultaneously move to bring fiat-pegged digital assets inside the boundaries of regulated finance.

The convergence is not coincidental. It reflects a global recognition that stablecoins have grown too large and too embedded in financial infrastructure to remain outside the formal banking system.

According to report from Bloomberg, the Hong Kong Monetary Authority is expected to grant licenses to HSBC and a joint venture led by Standard Chartered as early as March 24, 2026. HSBC’s inclusion is notable because the bank did not participate in the HKMA’s initial regulatory sandbox, suggesting authorities are comfortable extending approval to well-capitalized established institutions even outside the sandbox process.

Standard Chartered’s venture brings together Animoca Brands and telecom operator HKT to launch a Hong Kong dollar-pegged stablecoin, combining traditional banking infrastructure with digital asset and consumer technology expertise. The HKMA’s preference for note-issuing banks as first recipients signals a deliberate strategy: anchor the new licensing regime with the most systemically significant institutions before broadening access.

Japan’s Three Megabanks Build Shared Infrastructure

Japan is moving in a parallel direction, though through a collaborative rather than competitive model. The three biggest banks, MUFG, Mizuho, and Sumitomo Mitsui Banking Corporation, are building a shared yen-pegged stablecoin network on the Progmat Coin platform, targeting a full commercial rollout for late March 2026. Trials involving Mitsubishi Corporation are already underway. The decision by Japan’s three largest banks to build on shared infrastructure rather than competing platforms reflects a pragmatic approach to corporate payment rails, where interoperability matters more than differentiation. A yen-pegged network jointly operated by institutions of this scale could move significant volumes quickly once commercial operations begin.

The United States Finalizes Its Framework

Washington is further behind in timeline but advancing on two legislative fronts simultaneously. The GENIUS Act, supported by a proposed rule from the Office of the Comptroller of the Currency filed on March 10, would require stablecoin issuers to hold 100% reserves in high-quality liquid assets, a standard that mirrors the reserve requirements applied to money market funds in traditional finance.

The CLARITY Act is taking a different angle, with senators currently negotiating terms that would prohibit passive yield on stablecoins while permitting rewards tied to specific user activities. That distinction matters enormously for the competitive dynamics of the U.S. stablecoin market, as yield has been one of the primary mechanisms through which newer issuers have attracted deposits away from established players.

The UAE and Singapore Are Already Operational

Two markets have moved past the legislative stage entirely. The UAE legalized dirham-pegged tokens under its 2024 Payment Token Services Regulation, and the results are visible in daily commerce. AE Coin, the first licensed token under the framework, is now integrated into retail points of sale. First Abu Dhabi Bank and RAKBANK both received approvals in early 2026 to issue their own regulated stablecoins, meaning the UAE now has both fintech-native and bank-issued regulated digital currency operating in the same market simultaneously.

Singapore’s Monetary Authority has drafted final legislation establishing that only tokens pegged to the Singapore dollar or G10 currencies, and maintaining strict one-to-one reserves, may carry the label of MAS-regulated stablecoin. StraitsX and Paxos Digital are expected to be among the first licensed under the framework. The MAS approach prioritizes clarity of definition over speed of issuance, drawing a hard line between regulated stablecoins and the broader universe of crypto-adjacent tokens that issuers might otherwise attempt to position as equivalent.

The United Kingdom Moves Carefully

The Bank of England and the Financial Conduct Authority are developing a joint regulatory approach expected in a formal document in Q2 2026, with licensing applications opening later in the year. Deputy Governor Sarah Breeden recently signaled the Bank is willing to reconsider a previously proposed £20,000 holding limit per user following pushback from industry, suggesting the final framework will be more permissive than early drafts indicated. The UK’s dual-regulator model adds procedural complexity, but the flexibility now being signaled may produce a framework better suited to institutional adoption than the original proposals suggested.

Taken together, the pace at which major financial centers are moving from exploration to licensing reflects how thoroughly the debate has shifted. The question is no longer whether stablecoins belong inside regulated finance. It is which institutions get licensed first, and which jurisdictions set the terms everyone else follows.

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