Hong Kong’s stablecoin rules set to benefit major banks

Cross-border payments will likely be a key factor in the HKMA’s licensing decisions.

Hong Kong’s plan to license stablecoin issuers could favour large local banks with strong exporter relationships, CGS International said in a new report. 

The Hong Kong Monetary Authority (HKMA) is expected to issue the first batch of licences in early 2026 after receiving 36 formal applications by the end of September.

The research note said cross-border payments will likely be a key factor in the HKMA’s licensing decisions, especially for CNH-pegged stablecoins aimed at facilitating trade with Belt and Road countries.

Whilst the report sees little near-term earnings impact for traditional banks, it noted that growing use of stablecoins could eventually affect deposits and wealth management income if users shift funds from banks into digital assets offering yields.

On the positive side, banks that become stablecoin issuers or custodians could gain from managing the reserves backing the tokens.