HSBC, ICBC Pursue Hong Kong Stablecoin Licenses Amid Stricter Rules

- HSBC and ICBC plan to apply for stablecoin licenses in Hong Kong. - The regulatory regime, effective August 1, 2025, imposes stringent requirements. On September 8, 2025, Cointelegraph reported that HSBC and the Industrial and Commercial Bank of China (ICBC) are preparing stablecoin license applications. As two of the world's largest financial institutions, they are responding to Hong Kong’s rigorous new framework, which is reshaping the market. This regulatory regime commenced on August 1 and establishes a strict structure for stablecoin operations in the region. The Hong Kong Monetary Authority (HKMA) expects to issue a limited number of licenses initially, and ICBC and another major banking institution, Standard Chartered, are positioned as likely contenders for these early approvals. If successful, the banks may gain a significant first-mover advantage in Hong Kong’s evolving stablecoin market. The Stablecoin Ordinance enforces rigorous compliance standards, criminalizing the promotion or sale of unlicensed fiat-referenced stablecoins to retail investors. Following the announcement of these requirements, the stock valuations for some stablecoin-related companies declined notably, signaling the regulatory framework’s stringent impact on market participants. In addition to license applications, the framework addresses broader cryptocurrency oversight. In mid-August, the Hong Kong Securities and Futures Commission (SFC) issued enhanced guidelines for cryptocurrency custody standards that mandate improved security protocols. The SFC also advised investors to exercise caution, highlighting the heightened risk of fraud that stablecoins present under the new regime. According to CoinMarketCap, as of 11:44 UTC on September 8, USDC (USDC) traded at $1.00, and its 24-hour trading volume increased by 3.3%. Similarly, PayPal USD (PYUSD) was priced at $0.999 with its volume up 2.1% over the same period. These figures emphasize steady activity in the stablecoin market as regulatory developments reshape the sector globally.