Hong Kong’s banking regulator, the Hong Kong Monetary Authority (HKMA), expects to grant its first batch of stablecoin issuer licenses in March, with only a “very small number” approved initially, HKMA chief Eddie Yue told lawmakers on Monday.
The move marks a shift from consultation and sandbox testing to a supervised market in which a limited set of issuers can legally operate at scale under Hong Kong’s new stablecoin regime.
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What the HKMA Says It’s Looking For
Yue said the licensing assessments center on whether an issuer has a defensible use case, robust operational and financial risk controls, effective anti-money laundering safeguards, and an appropriate reserve backing model.
The HKMA did not immediately respond to a request for comment on how many applications it has received and how many licenses it expects to issue in March.
From Sandbox to Licensing
Hong Kong launched a stablecoin issuer sandbox in 2024.
The HKMA previously named three participants:
- JINGDONG Coinlink Technology Hong Kong Limited.
- RD InnoTech Limited.
- A consortium involving Standard Chartered Bank (Hong Kong) Limited, Animoca Brands Limited, and Hong Kong Telecommunications (HKT) Limited.
In May 2025, Hong Kong’s legislature passed a stablecoin bill establishing a licensing regime for fiat-referenced stablecoin issuers, including requirements tied to reserve assets, redemption, and risk controls.
The HKMA later said its stablecoin licensing regime under the Stablecoins Ordinance took effect on Aug. 1, 2025, making issuance of fiat-referenced stablecoins a regulated activity that requires a license.
Why “Few Expected” Is the Story
A small first cohort can shape market structure quickly.
If only a handful of issuers are licensed, early integrations may concentrate around those entities, particularly where banks and regulated payment partners prefer licensed counterparties.
Yue said licensed issuers will need to follow Hong Kong rules for cross-border transactions, and noted the possibility of exploring mutual recognition arrangements with other jurisdictions over time.
Who Has Signaled Interest
CCN previously reported that Ant International planned to apply for a Hong Kong stablecoin issuer license once procedures opened, alongside applications in other jurisdictions.
Separately, Standard Chartered’s Hong Kong unit, Animoca, and HKT planned a joint venture to apply for an HKMA license to issue a Hong Kong dollar-backed stablecoin.
The first licenses will effectively create a regulated shortlist in a market where trust hinges on redemption and reserves.
After licenses are issued, the key questions will be how concentrated issuance becomes, how cross-border usage is handled in practice, and whether licensing translates into meaningful adoption through banks and regulated payment partners.
