Hong Kong is set to issue its first stablecoin licenses, with HSBC and Standard Chartered expected to be among the initial recipients. The Hong Kong Monetary Authority (HKMA) is reviewing 36 applications under a new licensing framework designed to regulate Hong Kong dollar-backed stablecoins. The framework, which builds on a sandbox program launched in 2024, aims to ensure that projects demonstrate clear use cases and sustainable business models. The potential approval of HSBC and Standard Chartered would position these banks at the forefront of Hong Kong's stablecoin rollout. Both institutions already issue Hong Kong's physical banknotes and operate within the city's regulated banking system. The HKMA reportedly favors bank-led issuers to encourage broader market adoption and manage financial risks effectively. The first licenses could be granted as early as March 24, aligning with Hong Kong's digital asset strategy and strict anti-money laundering requirements.