Hong Kong Stablecoin Licensing: An "Old Money" Entrance Ceremony, the Mid-Game Break for Web3 Enthusiasts

Web | Web3 Observation Notes

Editor | Web3 Observation Notes

Introduction

On April 10, 2026, the Hong Kong Monetary Authority finally announced the results.

At the moment the list of the first batch of stablecoin issuers’ licenses was published, the entire Web3 community reacted with surprising unanimity—“Is that all?”

HSBC, Dockpoint Finance (a joint venture of Standard Chartered, Hong Kong Telecom, and Animoca). Two traditional note-issuing banks, with no tech companies, no exchanges, no native Web3 players.

Some interpret this as a “negative signal,” others say “Hong Kong’s stablecoin narrative is over.” But if you truly understand the logic behind this licensing process, you’ll see: this is not the end, but the beginning of a carefully crafted “infrastructure first” script just now unfolding.

1. 36 Applications, the Sudden End of a Cross-Industry Carnival

Rewind six months. In September 2024, when the Hong Kong Monetary Authority closed the application window, 36 submissions came from six completely different sectors: banks, tech giants, payment platforms, brokerages and asset managers, e-commerce companies, and native Web3 firms.

JD Chain made a high-profile entry, planning to anchor on HKD or USD, with scenarios directly targeting the e-commerce ecosystem; Ant Group advanced on dual tracks, with both international and digital science entities expressing interest; Yuanbi Technology, Xiaomi, East Asia Bank… the list spans consumer payments, Web3 infrastructure, and traditional banking.

At that time, the market generally expected Hong Kong to pursue a “traditional finance + tech giants + new Web3 forces” integration route, similar to the virtual bank licensing, leaving a door open for innovators.

But the results on April 10th temporarily closed that door.

2. Why “Old Money”? Understanding Three Hidden Rules

In February this year, the CEO of the HKMA, Eddie Yue, stated: “The number of licenses issued in the first batch will not be many, aiming for prudence.”

He kept his word. But behind “prudence” lies a more sophisticated filtering logic than the surface rules:

Rule 1: Priority to Note-Issuing Banks

This naturally creates an exclusivity expectation. If HSBC does not apply, the future digital HKD track might only have Standard Chartered’s name. For an institution that regards “note-issuing” as its 160-year core asset, this is a symbolic absence that’s hard to accept. So HSBC chose to follow suit.

Rule 2: Extremely High Technical and Compliance Barriers

Building a multi-million-dollar HSM data center, anti-money laundering systems, on-chain monitoring, reserve asset pools—completing all this turns stablecoin issuance into a pure cost, with short-term ROI not very optimistic. Most commercial entities might choose to wait and see after evaluation.

But HSBC and Standard Chartered find it hard to withdraw. Rule 1 has already created a strategic lock-in.

Rule 3: Repeatedly Reassess Business Logic

During interviews, the HKMA repeatedly asked applicants: “Why do you want to issue your own, instead of using someone else’s?”

This effectively signals in advance: profitability is not the primary concern. The applicants who ultimately remain tend to give a consistent answer: “We can help Hong Kong build this infrastructure.”

These three rules stack up to form a unique participation logic: HSBC and Standard Chartered proactively apply, invest tens of millions of dollars, and voluntarily bear the costs of user education and scenario development. This is not the result of administrative orders but a natural outcome of rule design.

3. The “Free Infrastructure” Logic Behind High Barriers

Getting the license is just the beginning. Hong Kong’s restrictions on stablecoin issuers are arguably the strictest worldwide:

Reserve Assets: Must be cash, deposits within 3 months, or government bonds within a year; cannot be stocks, corporate bonds, or crypto assets, and must be denominated in the issued currency.

Independent Custody: Reserve assets are held by licensed banks or approved custodians, segregated from the issuer’s own assets, with priority claims for holders in case of bankruptcy.

Rigid Redemption: Must be completed within one business day, with no delays for any reason.

Frequent Audits: Daily reporting, weekly submissions to the HKMA, and monthly external audit certification and public disclosure.

Zero Interest: Licensees cannot pay any interest to stablecoin holders, blocking the path to “financialization.”

What do these rules imply? They mean HSBC and Standard Chartered are essentially footing the bill to build “free” infrastructure for Hong Kong’s Web3 ecosystem. HSM data centers, KYC/AML systems, on-chain monitoring, user education, merchant onboarding, cross-border B2B scenarios—these were the biggest pain points for ecosystem development, now borne by the note-issuing banks under the guise of “business stablecoins.” They are paving the way, not toll booths.

4. Where Are the Opportunities in Web3?

The first batch of licenses is issued, but the story is far from over.

The real value of stablecoins lies in their role as the fundamental settlement units of on-chain economies. When Hong Kong’s licensed stablecoins can circulate freely across exchanges, RWA platforms, cross-border payment channels, every service node around this—brokers, asset managers, clearing intermediaries, custodians, market makers—will benefit from a wave of infrastructure rebuilding.

The HKMA has already clarified: the initial phase focuses on cross-border payments, local payments, and tokenized asset settlement, with exploration into programmable payments and supply chain financing.

These scenarios are precisely the playground for native Web3 companies.

Standard Chartered’s joint venture path (Dockpoint Finance) has already sent signals: Animoca Brands entering as a Web3 gaming giant indicates traditional note-issuers also need native partners to enhance scenario capabilities.

Brokerages can handle digital asset custody, RWA platforms need secondary market market-making, on-chain clearing requires specialized intermediaries, tokenized securities need underwriters—these are the real businesses that will emerge after license issuance.

5. The Global Race: “Slow and Steady Wins the Race”

Compared horizontally, Hong Kong is indeed a step behind.

By December 2024, the EU’s MiCA regulation will fully take effect; by June 2025, the U.S. Senate will pass the GENUIS Act through procedural votes. Washington’s logic is straightforward: stablecoins pegged to the dollar help absorb U.S. Treasury debt and extend dollar hegemony.

Faced with pressure from both Europe and the U.S., Hong Kong chooses to “play slow to win.”

But there is a reason for the slow pace: Hong Kong is using the “world’s first comprehensive legal currency stablecoin license system” as a qualifier, positioning itself for future interconnection negotiations.

The settlement foundation for RWA asset tokenization, the digital bill system for cross-border trade—each path’s end point requires a compliant, trustworthy, redeemable stablecoin as a starting point.

Hong Kong has just built that starting point.

6. Conclusion: Mid-Game Break, Not the Final Whistle

The results of the first batch of licenses may disappoint market participants eager for quick entry. But if we look at the long-term perspective, this is a classic “infrastructure first” script:

First phase: let capable, willing, strategically patient traditional institutions build the road;
Second phase: let scenario-driven, tech-savvy, innovative players take the wheel.

HSBC and Standard Chartered are the paving workers, while various participants in the ecosystem—whether Web3 teams, tech companies, or SMEs seeking digital upgrades—are the future drivers.

The narrative of Hong Kong stablecoins has only just begun.