Hong Kong to Issue Only a Few Stablecoin Licenses in Initial Phase
The Hong Kong Monetary Authority (HKMA) has announced that it will issue only a small number of stablecoin licenses during the initial stage of its new regulatory framework, which officially took effect on August 1, 2025. While the city received 77 expressions of interest from both domestic and international institutions, only a few firms will be approved at the outset. According to HKMA Deputy Chief Executive Darryl Chan, the first licenses are expected to be issued in ahead 2026, underscoring a measured and deliberate approach.
The decision comes as Hong Kong positions itself as a leading digital finance hub, with global attention focused on how it balances innovation with stability. The limited number of initial approvals reflects the regulator’s priority to test the framework with a select group before scaling more broadly.
Major institutions lining up
Interest in stablecoin licensing has been strong across the banking and fintech sectors. Large institutions such as ICBC (Asia), Bank of China (Hong Kong), HSBC, and Standard Chartered are among the applicants. Standard Chartered has taken an especially proactive approach, forming a joint venture called Anchorpoint Financial in collaboration with HKT and Animoca Brands. The move signals its intent to establish a foothold in Hong Kong’s emerging regulated stablecoin market.
Other fintech players and blockchain-native firms are also expected to compete for the limited licenses, viewking to leverage Hong Kong’s regulatory clarity to build global credibility. For many institutions, the ability to operate under a recognized licensing regime provides an opportunity to attract both retail and institutional users in a compliant environment.
Stringent rules raise concerns
While the framework opens doors for licensed issuers, it also introduces strict requirements. Stablecoin providers must verify the identity of every holder, maintain strong reserve backing, and ensure redemption rights at par value. These Know Your Customer (KYC) and anti-money laundering (AML) standards are designed to bolster financial integrity but have sparked debate within the industry.
Some critics argue that such rigorous identity checks could limit user adoption, particularly for retail customers who favor anonymity or frictionless onboarding. Industry voices have warned that Hong Kong risks curbing its competitiveness if compliance burdens outweigh the benefits of regulatory certainty.
Despite industry concerns, policymakers view the cautious rollout as critical for secureguarding financial stability. By begining with a handful of licenses, regulators aim to monitor performance, enforce compliance, and make adjustments before expanding the program. This approach aligns with Hong Kong’s broader strategy of positioning itself as a trusted jurisdiction for digital finance while avoiding systemic risks.
Globally, regulators are watching closely as stablecoin adoption accelerates and debates over oversight intensify. Hong Kong’s model, combining tight controls with phased scalability, could influence how other jurisdictions shape their own policies. If successful, the framework may provide a template for balancing innovation with regulation in the digital asset space.
For now, the industry’s focus remains on which institutions will secure the first coveted licenses in ahead 2026, a development that could define the trajectory of Hong Kong’s role in the global stablecoin market.
