AsiaSGE | Hong Kong’s Stablecoin Licences: A Strategic Signal for Digital Assets – But Patience Required on Revenue

In a landmark move, the Hong Kong Monetary Authority (HKMA) has granted its first batch of stablecoin issuer licences under the new Stablecoin Ordinance. The recipients? Two heavyweight names: HSBC and a joint venture involving Standard Chartered – Anchorpoint Financial (backed by Standard Chartered Hong Kong, HKT, and Animoca Brands).

While the news has generated significant buzz, global investment bank J.P. Morgan has offered a measured yet optimistic take. For businesses and investors watching Asia’s digital asset landscape, this development carries both symbolic weight and practical implications.

At AsiaSGE, we help clients navigate regulatory shifts in Asia’s financial markets. Below, we break down what this means for corporates, banks, and digital asset players.

1. Why This Matters: Removing Regulatory Uncertainty

J.P. Morgan notes that the most immediate impact of these licences is psychological and strategic. Until now, there were growing concerns that Hong Kong might slow its digital asset push, especially given mainland China’s continued caution toward cryptocurrencies and stablecoins.

By awarding licences to two of Hong Kong’s three note‑issuing banks, the HKMA has sent an unequivocal signal: Hong Kong remains committed to building a compliant, regulated digital asset ecosystem. This is not a pilot or a sandbox – it is a live, licensed regime.

For multinational corporations and fintech firms evaluating regional digital asset hubs, this clarity is invaluable. Hong Kong has reinforced its position as a first‑mover among regulated stablecoin jurisdictions.

2. The J.P. Morgan View: Positive but Cautious on Near‑Term Revenue

J.P. Morgan maintains an “Overweight” rating on both HSBC and Standard Chartered following the announcement, reflecting a positive medium‑term view on earnings potential and capital‑returns rather than short‑term stablecoin‑related revenue.

However, the bank’s research explicitly characterizes stablecoin operations as a long‑term, infrastructural play and cautions that they will not contribute meaningfully to either bank’s top or bottom line in the short‑ to medium term.

This assessment is grounded in two key realities:

No interest on stablecoins – Under HKMA‑style rules, stablecoin holders typically do not earn interest. Income from reserves accrues to the issuer, but revenue is primarily driven by transaction and settlement fees, not float income.

Scale takes time – Even with bank‑grade backing, building mass user adoption, broad merchant integration, and cross‑border payment volumes is widely viewed in the industry as a multi‑year journey.

This aligns with our own analysis at AsiaSGE: regulated stablecoins in Hong Kong will initially serve as payment infrastructure, not high‑margin financial products.

3. HSBC vs. Standard Chartered – Different Paths, Same Destination

While both banks secured licences, their strategic approaches differ – and that matters for potential partners and clients.

Aspect	HSBC	Standard Chartered (via Anchorpoint)
License vehicle	Direct bank licence	Joint venture (Anchorpoint)
Target launch	H2 2026	Q2 2026 (phased)
Initial focus	Retail payments via PayMe and HSBC HK App	Cross‑border B2B2C payments
Broader digital asset role	Tokenised deposits already live	Custody, crypto trading, wider Web3 ecosystem

For AsiaSGE clients considering stablecoin integration, the choice of partner may depend on use case:

• Cross‑border trade finance → Anchorpoint (Standard Chartered’s network + Animoca’s Web3 experience) offers compelling B2B angles.

• Retail payment apps or remittances → HSBC’s direct‑to‑consumer reach through PayMe is a powerful channel.

4. What This Means for Your Business

For Corporates & Treasury Teams

Hong Kong’s regulated HKD stablecoins can eventually streamline cross‑border settlements and reduce FX friction. However, until liquidity deepens (likely 2027–2028), don’t expect to replace existing banking relationships. Start by testing small‑volume, high‑frequency payments.

For Fintech & Web3 Startups

The licence framework is now live – but the bar is high. The HKMA received 36 applications and approved only two (5% success rate). Compliance, reserve management, and legal structure are critical. ASIASGE can assist with regulatory readiness assessments for stablecoin or payment token projects.

For Investors

J.P. Morgan’s “Overweight” stance on HSBC and Standard Chartered is partly driven by sentiment and long‑term optionality, not near‑term stablecoin earnings. Pure‑play stablecoin startups in Hong Kong may face thinner margins than expected, given the no‑interest rule. Look for companies that bundle stablecoin issuance with higher‑value services (custody, trading, lending, tokenised assets).

5. The Global Context: A Slow Burn, Not a Gold Rush

J.P. Morgan’s caution is echoed by broader industry data:

• S&P Global’s Q1 2026 survey: Found that only 7% of 100 surveyed banks are actively developing stablecoin frameworks, with no live stablecoin pilots yet, indicating an early‑stage, exploratory phase.

• Standard Chartered’s deposit‑outflow view: Standard Chartered projects that up to about $500 billion in U.S. bank deposits and over $1 trillion in deposits from emerging‑market banks could migrate into stablecoins by 2028 under high‑adoption scenarios. Your original text rounds this to US$1.5 trillion of potential deposit outflows globally by 2028, which is a reasonable composite estimate but should be understood as a combined view across U.S. and emerging‑market banks, not a single line item.

• Jefferies’ stablecoin‑market projection: Estimates that the global stablecoin market could reach US$800bn to US$1.15tn within five years, driven by payments, treasury management, and cross‑border flows. Concurrently, Jefferies notes this growth could reduce bank earnings by about ~3% over that period, mainly via deposit‑outflow and higher funding‑cost effects.

For Hong Kong, the play is strategic: build the rails now, capture the volume later.

Final Thoughts from AsiaSGE

The HKMA’s / Hong Kong stablecoin licences are a foundational move, not a revenue event. For HSBC and Standard Chartered, the real payoff lies in:

• Defending their payment and settlement franchises against unregulated stablecoins (e.g., USDT),

• Anchoring Hong Kong’s tokenised asset market (bonds, funds, trade finance),

• Positioning for the eventual convergence of CBDCs and regulated stablecoins, where stablecoins function more as infrastructural and defensive tools than as short‑term profit engines.

For businesses operating in or through Hong Kong, now is the time to understand the new stablecoin regime – but not yet to rewire your entire treasury operation. Pilot projects, sandbox participation, and advisory engagement are the prudent next steps.

AsiaSGE specialises in regulatory strategy and market entry for digital assets across Asia. Whether you are a fintech, or a corporate exploring stablecoin‑based payments, our team can help you assess the opportunities – and the timelines.

Disclaimer: The content shared is for general informational purposes only and does not constitute legal, tax, financial, or investment advice. Asia Strategic Growth Enterprises Limited makes no guarantees about accuracy or completeness. Please verify information independently and seek professional advice for your specific situation. The views and opinions expressed are for informational purposes only and do not constitute professional advice or specific recommendations. Nothing herein should be construed as a solicitation, endorsement, or recommendation regarding any course of action.