Hong Kong is preparing to grant its first batch of stablecoin licenses within the next few months as the city steps closer to becoming a regulated hub for digital assets.
Financial Secretary Paul Chan Mo-po confirmed in a recent interview with China Daily that the government has already received multiple applications from firms eager to issue fiat-backed stablecoins under Hong Kong’s soon-to-be-enforced licensing framework.
Chan noted that the city’s regulatory strategy is being rolled out in stages, with the initial focus on stablecoins tied to traditional fiat currencies.
“Stablecoins pegged to fiat have a wide range of use cases,”
he said, pointing to applications like cross-border payments as a key area of interest. He added that future developments may include digital tokens that are “real and integrated with the real economy,” ensuring they deliver utility rather than speculation.
The upcoming rollout builds on efforts started last year when companies, including Hong Kong Telecommunications, Standard Chartered, and Animoca Brands, began trialing stablecoin use cases under the Hong Kong Monetary Authority’s (HKMA) sandbox program.
The licensing initiative follows the recent passage of Hong Kong’s Stablecoins Bill in late May. Under the new Stablecoins Ordinance—set to take effect on August 1—all entities issuing fiat-backed stablecoins, whether pegged to the Hong Kong dollar or other currencies, must be licensed by the HKMA.
Tech heavyweights such as JD.com and Ant Group are reportedly among the early applicants, along with financial institutions like Standard Chartered and a number of local logistics firms, signaling strong interest from both domestic and international players in tapping into Hong Kong’s digital finance ecosystem.
A notable feature of the upcoming framework is Hong Kong’s adoption of an ‘open model’ for stablecoin issuance. Unlike jurisdictions that limit stablecoins to U.S. dollar pegs, Hong Kong will allow licensed issuers to back their tokens with a range of fiat currencies.
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Hong Kong received 36 applications
The HKMA received 36 applications during the initial application period. After reviewing them against requirements covering business models, reserve assets, risk management, anti-money-laundering controls and operational capabilities, the regulator approved only two.
The small number of approvals signals that Hong Kong is taking a cautious approach to stablecoin regulation.
HKMA Chief Executive Eddie Yue had previously indicated that only a limited number of licenses would be issued initially. The regulator is particularly focused on whether applicants have credible use cases and sufficient risk-management systems rather than simply having the technology to issue a token.
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