HKMA stablecoin licensing, Standard Chartered Bank, Ant Group, PetroChina and 77 other institutions compete | Traditional banks and Web3 newcomers compete in the same arena

The Hong Kong Monetary Authority ( HKMA )'s regulatory call for stablecoin issuers has sparked a modern-day "gold rush", with a total of 77 intention applications received by the deadline of August 31. The applicants are diverse, including not only traditional financial institutions like Standard Chartered Bank and fintech giants like Ant Group, but also rare appearances from state-owned enterprises such as China National Petroleum Corporation. The Monetary Authority has made it clear that no licenses will be issued before 2025 and is currently initiating a strict screening process aimed at ensuring market stability, separating truly capable projects from mere conceptual declarations. This move will set an important benchmark for stablecoin regulation in Asia and even globally.

The Era of Hong Kong Stablecoin Regulation Officially Begins: 77 Institutions Submit Intent Applications

According to local reports from The English Tiger on September 1 and subsequent disclosures by HK01, the Hong Kong Monetary Authority confirmed that it received a total of 77 expressions of interest for its upcoming stablecoin issuer licensing regime before the deadline of August 31. This marks a critical step in the implementation of Hong Kong's virtual asset regulatory framework, with the market welcoming its first substantive regulatory response since the Stablecoin Ordinance officially took effect on August 1.

Diverse lineup of applying institutions: Traditional finance and Web3 innovation forces compete on the same stage

The group of applicants this time goes far beyond traditional cryptocurrency participants, forming a broad coalition. According to a spokesperson from the Monetary Authority, the intending applicants encompass a diverse range of sectors including banking, technology companies, asset management firms, e-commerce platforms, payment companies, and Web3 startups. This diversity highlights a key signal: this competition is not just a game for crypto-native enterprises, but rather concerns who will lead the next generation evolution of digital payment infrastructure in international trade.

Regulatory agencies strictly control the review process and clearly state that approval is not guaranteed

Due to the sensitivity of the process, regulators immediately suppressed market speculation, refusing to disclose the names of any applicants and clearly stating that submitting a letter of intent is only the first step and far from a guarantee of approval. A spokesperson for the Monetary Authority emphasized: "Whether a license will ultimately be granted will depend on whether the application meets the licensing requirements." The agency had previously made it clear that only a limited number of licenses would be issued in the initial phase.

Giants Surround the Stablecoin Market: State-Owned Energy Companies Explore Cross-Border Applications

Although the Monetary Authority has kept the official applicant list strictly confidential, previous reports point to a series of industry giants. From global banking institutions like Standard Chartered to fintech giants like Ant Group, there has been significant interest. The most indicative is the participation of state-owned enterprises like China National Petroleum Corporation—this energy giant has publicly disclosed a feasibility study on using stablecoins for cross-border settlement. This indicates that the application scenarios for stablecoins are expanding from simple cryptocurrency trading to broader sectors of the real economy.

The issuance schedule is extended to 2025, and the Monetary Authority emphasizes the huge workload of due diligence.

Despite the high market interest, the licensing process in Hong Kong has essentially been frozen. The "Stablecoin Regulation" came into effect on August 1, but the Monetary Authority has already warned that approval may not be achieved until sometime in 2025. Vice President Chen Weimin publicly attributed this timeline to the "heavy workload" of reviewing complex applications, describing the task as requiring a significant amount of due diligence work.

Regulatory agencies initiate preliminary meetings to comprehensively assess institutional preparedness.

According to the latest reports, the Monetary Authority has begun arranging meetings with applicants to assess the intentions and preparedness of all parties. These meetings are aimed at helping applicants evaluate the necessity and maturity of their issuance plans before deciding whether to proceed with a formal submission. The discussion results will help regulators and market participants understand the depth and readiness of Hong Kong's stablecoin ecosystem.

The Monetary Authority reiterates public risk warning, emphasizing that only licensed institutions operate in compliance.

The Monetary Authority has once again issued a warning to the public regarding unlicensed stablecoins, advising consumers to be cautious of promotional materials issued by unlicensed entities. This statement indicates that the regulatory authority will take a strict stance against unlicensed operations, although specific enforcement mechanisms have not yet been detailed.

Hong Kong Will Become a Regional Regulatory Reference Point Initial Decisions Have a Far-Reaching Impact

Hong Kong's initial screening process is likely to serve as a reference point for other regulatory jurisdictions. Early decisions regarding transparency, scope, and eligibility may influence how regional markets handle stablecoin regulation in the future. This is one of the core regulatory tools for developing a virtual asset framework under the broader digital finance agenda of the city's Financial Services and the Treasury Bureau.

The official application is about to launch. Strategy adjustments may become a necessary choice.

It is expected that a formal license application will be submitted in the coming months, but the final number of approved entities remains unclear. The limited availability of licenses may lead companies to reassess their strategies. Some companies may delay their applications, collaborate with existing license holders, or seek alternative structures to meet compliance thresholds without applying directly.

Frequently Asked Questions (FAQs)

1. What risks is the Monetary Authority trying to avoid by limiting the early issuance of licenses?

Concentrated approval allows regulatory agencies to monitor systemic risks, assess operational practices, and prevent early failures from causing large-scale ripple effects.

2. Are there consequences for entities promoting stablecoins without a license?

Although the enforcement mechanism has not been detailed yet, the public warning indicates that the Monetary Authority may enhance scrutiny or coordinate with other regulatory agencies.

3. Will licensed institutions be allowed to provide retail services immediately?

Not necessarily. Retail services may require separate approvals or phased rollout conditions, depending on the applicant's risk profile and business model.

Conclusion

The Hong Kong Monetary Authority's stablecoin licensing process has become an important touchstone for the integration of traditional finance and crypto finance. The strong interest from 77 institutions reflects the market's recognition of the prospects for compliant stablecoins, while the regulatory authorities' cautious attitude demonstrates a high emphasis on financial stability. This process will not only shape the future landscape of Hong Kong as a virtual asset hub but will also provide key practical references for global stablecoin regulation. As the licensing date approaches in 2025, market participants need to be fully prepared to adapt to this entirely new regulatory environment, where reserve proof, anti-money laundering protocols, and operational resilience will become core assessment indicators. The gradual improvement of Hong Kong's stablecoin regulatory framework indicates that the crypto industry is moving towards a more institutionalized and standardized direction.