First approvals suggest cautious regulatory approach.
Hong Kong has launched its stablecoin issuance regime with a conservative first step, awarding its first two licences to HSBC and a Standard Chartered-led joint venture as regulators put banks at the centre of the market’s early development.
S&P Global Ratings said the Hong Kong Monetary Authority’s decision to approve The Hongkong and Shanghai Banking Corp. and Anchorpoint Financial Ltd., a strategic partnership led by Standard Chartered Bank (Hong Kong), signalled a cautious approach favouring institutions with stronger risk management and governance capabilities.
The ratings agency said the first licensees are likely to enjoy a first-mover advantage as Hong Kong develops into a digital asset hub.
It said banks that can combine stablecoin issuance, trading, lending, investment, and payments on a single platform may be able to build network effects and stronger customer stickiness.
S&P also said Standard Chartered’s venture structure showed banks will not only compete with other lenders, but also with non-financial and Web3 players in digital asset services.
The consortium includes Hong Kong Telecom, which specialises in mobile wallets, and blockchain company Animoca Brands.
The agency said the opening of Hong Kong’s stablecoin market could support broader digital asset development, particularly by strengthening tokenisation.
Stablecoins can provide the on-chain cash leg needed to make tokenised transactions more efficient, it said.
Still, S&P warned that the move could eventually disrupt parts of the traditional banking model.
It said wealth management could benefit through new stablecoin-linked products and digital asset offerings, whilst wholesale payments could face the greatest pressure if stablecoins provide cheaper cross-border settlement outside conventional bank payment systems.
S&P expects Hong Kong to remain stringent on risk controls, noting that issuers are required to keep full backing for circulating stablecoins in segregated reserves made up of high-quality, highly liquid assets.
It added that Hong Kong is likely to remain Asia’s digital asset pioneer, with more local players expected to seek licences over time, though smaller banks may face steeper hurdles because of scale, technical expertise, and compliance demands.