Major banks HSBC and ICBC (Asia) are expressing interest in obtaining stablecoin issuer licenses under Hong Kong's new regulatory framework set to launch in 2026.
Licensing Strategy in Hong Kong
The Hong Kong Monetary Authority (HKMA) confirmed that HSBC and ICBC (Asia) intend to apply for stablecoin licenses. This decision aligns with the introduction of new regulations. As they pursue involvement in the regulated crypto market, this move is significant for these banks.
Impact of Major Banks on Liquidity
The entry of major banks into the stablecoin space could significantly affect liquidity and the financial environment in Hong Kong. The HKMA anticipates a cautious rollout with strict requirements. However, the impact on existing crypto assets like ETH and BTC remains limited for now.
Comparative Regulatory Approach of Hong Kong and Singapore
The HKMA's approach mirrors Singapore's prior digital asset licensing practices, focusing initially on larger financial institutions. If licensed products are approved, on-chain stablecoin liquidity is expected to increase, enriching Hong Kong's digital asset market.
HSBC and ICBC's plans to obtain stablecoin licenses highlight the growing interest in regulating the crypto market in Hong Kong and may signify a new stage in the development of digital assets in the region.
