Major Banks Battle for Hong Kong’s Limited Stablecoin Licenses

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In a contest of monumental proportions, Hong Kong’s financial regulators have found themselves the unlikely custodians of a grand spectacle, with at least 77 institutions clamoring for the few, golden tickets of stablecoin licenses. The floodgates are open, and the banks-big, bad, and sometimes just a little bit confused-are lining up to secure their place in a rapidly evolving financial landscape.

At the forefront of this madness, Industrial and Commercial Bank of China (ICBC) and its Hong Kong counterpart, ICBC (Asia), have raised their hands, signaling their intent to play the game. Not to be outdone, Bank of China (Hong Kong) has also entered the fray, the quiet giants of mainland-backed financial muscle. And then there’s HSBC, always a step behind but with enough resources to make anyone nervous. Meanwhile, Standard Chartered and Bank of China are reportedly locked in an intense battle, each vying for that coveted initial license like a toddler reaching for the last cookie at snack time.

The regulators, as you’d expect, are taking the whole affair with the utmost seriousness-after all, consumer protection, anti-money-laundering measures, and the ever-present specter of systemic risk must be kept in check. As such, the licensing process is being described as “tightly capped,” a phrase that sounds as comforting as a winter coat in the middle of a heatwave.

The interest from these banks, however, is less about good deeds and more about setting up camp in the burgeoning world of tokenized payments and digital assets. Analysts speculate that securing one of these licenses could give institutions a head start in Hong Kong’s rapidly expanding crypto-payments infrastructure. Because, let’s face it, when the future of money is at stake, no one likes being the last one to the party. 😏💰

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2025-09-09 14:49