Hong Kong Leads the Way: First Stablecoin Licenses Set for Issuance

Hong Kong is positioning itself as a prominent global leader in digital asset regulation, particularly in the realm of stablecoins. The jurisdiction is set to issue its inaugural stablecoin licenses in the coming months, following the passage of the Stablecoins Bill by the Legislative Council in May 2025. The resultant Stablecoins Ordinance (Cap. 656) will come into force on August 1, 2025, establishing a comprehensive regulatory framework for fiat-referenced stablecoins. This framework will regulate the issuance, offering, and marketing of such assets, ensuring that only licensed entities are authorized to engage with retail investors.

The Financial Secretary of Hong Kong, Paul Chan, has announced that regulatory authorities have already received a significant number of license applications. The initial batch of licenses is expected to be granted within a relatively short timeframe. Notably, major corporations—including Ant Group, JD.com, Standard Chartered, and Animoca Brands—are among the early applicants. These companies have previously participated in the Hong Kong Monetary Authority’s (HKMA) stablecoin sandbox, where they explored various potential use cases.

Entities granted licenses will be subject to stringent regulatory requirements. These include robust standards for reserve asset management, transparent redemption mechanisms, anti-money laundering protocols, risk management practices, comprehensive disclosure obligations, and regular auditing. The regulatory regime is designed to both foster financial innovation and safeguard the region’s monetary and financial stability.

The government’s proactive approach aims to facilitate the integration of stablecoins into the broader economy, particularly by enhancing cross-border payments and other practical applications. Furthermore, the framework emphasizes the maintenance of high compliance standards and rigorous consumer protection measures, including advertising restrictions to mitigate fraud risks. Through these initiatives, Hong Kong seeks to solidify its position at the forefront of digital asset development and establish a dedicated regulatory environment for stablecoins.