【Stablecoins】HKMA's First Batch of Stablecoin Licenses: Rumored Standard Chartered, HSBC, and OSL Shortlisted

This report states that Hong Kong’s first batch of stablecoin licenses will be issued after the Beijing Two Sessions. Fewer than four licenses are expected in the initial round. Industry sources quoted in the article indicate that the stablecoin issuers participating in the Hong Kong Monetary Authority’s “sandbox” testing, as well as RD Technologies founded by former HKMA Chief Executive Norman Chan, will not be among the first licensees.

March 12 News: HSBC, Standard Chartered, and OSL in the Spotlight

On March 12, local media sources, citing multiple insiders, reported that three companies are expected to receive licenses, including HSBC, Standard Chartered, and virtual asset trading platform OSL (00863). An announcement could come as early as next week, but there are still uncertainties. The HKMA spokesperson responded to inquiries, stating that the authority does not comment on market rumors.

Sources mentioned that RD Technologies, founded by Norman Chan, and LianLian Digital (2598), which provides digital payment services, were originally on the list. Industry insiders say that initially, five institutions were candidates. Although current market rumors mainly suggest three companies will be approved for the first licenses, bank licensees will be under strict regulation. It is believed that the final list will likely be dominated by banks.

Limited Number of First Licenses

The HKMA previously revealed that 36 institutions submitted applications for stablecoin licenses in the first round. However, they emphasized that the number of licenses issued initially will be limited, with a cautious and prudent approach. Market sources indicate that the Hong Kong government may issue two to three stablecoin licenses, and some reports suggest that the government prefers to announce these after the Beijing Two Sessions.

Multiple sources reveal that during the Two Sessions, Vice Premier Ding Xuexiang, responsible for Hong Kong and Macau affairs, reminded representatives of the Hong Kong Basic Law and political consultative conference members to ensure financial security. He mentioned that the rapid development of emerging industries such as virtual assets and artificial intelligence, empowered by high technology, could impact overall financial stability. Hong Kong’s financial security is crucial and also affects the nation. Strengthening research on new financial risks, balancing “swords and shields,” is necessary to ensure Hong Kong’s financial safety.

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