The Hong Kong Monetary Authority (HKMA) plans to issue its first stablecoin issuer licenses in March, with only a “very small number” expected to be approved initially, according to Chief Executive Eddie Yue.
Yue addressed the Hong Kong Legislative Council on Monday, noting that the review process for license applications is nearing completion. In a subsequent media briefing, he outlined the assessment focus areas, including use cases, risk management, anti-money laundering measures, and the quality of backing assets for the stablecoins, Reuters reported.
Licensed issuers will need to comply with Hong Kong’s regulations on cross-border activities. Yue added that the HKMA may explore mutual recognition arrangements with other jurisdictions in the future.
Stablecoin market growth frames regulatory push
Stablecoins are cryptocurrencies whose value is anchored to fiat money, such as the U.S. dollar. Worldwide adoption has been rising as major jurisdictions establish regulatory frameworks. Last year, stablecoins facilitated $35 trillion in blockchain transactions.
Currently a $300 billion asset class, stablecoins are projected by Citi to reach a market size between $1.9 trillion and $4 trillion. Standard Chartered CEO Bill Winters highlighted that Hong Kong’s push into tokenized money and stablecoins could lay the foundation for a new era of digital trade settlement.
The Stablecoin Ordinance, which took effect in August 2025, requires any entity issuing stablecoins in Hong Kong to obtain a license from the HKMA. On Jan. 21, Hong Kong Finance Secretary Paul Chan indicated that stablecoin licenses were expected to be issued in the first quarter of 2026, aligning with the region’s “same activity, same risk, same regulation” approach to crypto assets.
Early licensing emphasizes operational readiness
Yue previously noted that many applicants lacked operational readiness and credible implementation plans. Some entities did not have the technical expertise to act as stablecoin issuers, highlighting the regulator’s caution in the approval process.
The HKMA received applications from 36 institutions during the first licensing round, though it has not publicly confirmed any applicants. The regulator has also emphasized that early licensing decisions should not be interpreted as endorsements of any specific business model.
Several notable entities have signaled their intention to apply for stablecoin licenses in Hong Kong. In August, Standard Chartered’s Hong Kong arm and Animoca Brands established Anchorpoint Financial Limited to apply for a local license. In September, HSBC and the Industrial and Commercial Bank of China (ICBC) also indicated plans to submit applications.
Public registry tracks licensed entities
To ensure transparency, the HKMA launched a public registry in July 2025. Users can track which entities hold licenses to issue stablecoins in Hong Kong. As of Monday, the registry remained empty, reflecting the fact that no licenses have yet been granted.
The first batch of approvals is expected to be limited. Yue described the upcoming issuance as cautious, signaling the regulator’s priority on safety, technical competence, and compliance standards rather than rapid market expansion.
Matvii Diadkov
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