# HongKongStablecoinIssuerLicenseList

Hong Kong Stablecoin Update: The Race for the License
Hong Kong is rapidly finalizing its framework for fiat-referenced
stablecoins (FRS). While the legislative bill is currently undergoing the
consultation process (expected to be enacted later this year/early next year),
the Hong Kong Monetary Authority (HKMA) has activated a "Stablecoin Issuer
Sandbox" to allow firms to test their tech.
Current Status: No entity holds the final license
yet, as the legislation has not passed. However, the "Sandbox"
participants are the de facto front-runners.
The Watchlist (Sandbox
Participants & Applicants)
Based on public announcements and HKMA disclosures, here are the key
players positioning themselves for the first wave of licenses:
1. The Traditional Finance Giants:
Standard
Chartered: Likely the most aggressive incumbent. They
are testing a stablecoin focused on institutional use (bond settlements)
in partnership with Animoca Brands.
HSBC:
Exploring tokenization and stablecoin utility for cross-border payments,
though they are quieter about the specific issuer license compared to
StanChart.
2. The Virtual Banks:
ZA
Bank: Has publicly applied for the license and is
actively exploring stablecoin issuance for Web3 trading and settlement.
Fusion
Bank: Also exploring integration, though less
public than ZA Bank.
3. The Crypto Natives & Tech:
HashKey:
Already a licensed crypto exchange in HK. They are heavily involved in the
ecosystem and are expected to be a primary issuer or infrastructure
provider.
Circle
(USDC): The issuer of USDC has engaged with HK
regulators and expressed a strong desire to comply with the new local
regime to maintain market access.
4. Institutional Players:
J.P.
Morgan: While already operating an institutional
stablecoin (Onyx), they are engaging with the HKMA sandbox to ensure
compliance within Hong Kong's jurisdiction.
Key Regulatory Requirements
(The "Rules")
To make this list, issuers must meet strict HKMA criteria:
100%
Backing: Stablecoins must be fully backed by
high-quality liquid assets (reserves).
Redemption:
Must redeem at par value (1:1) immediately upon request.
Naming:
Must include the word "Stablecoin" in the name to distinguish it
from other crypto assets.
The Takeaway: The race is currently between Standard Chartered and ZA Bank
for the "first mover" advantage among local institutions, while HashKey
leads the crypto-native charge. Expect the first formal licenses to be granted
shortly after the "Stablecoin Bill" is gazetted.
Research based on HKMA public papers and corporate announcements as of
June 2024.
‍#HongKong #Stablecoin