Hong Kong's Stablecoin Gold Rush: Over 40 Firms Vie for Limited Licenses

More than 40 Hong Kong businesses are aggressively trying to issue stablecoins, showing great sector interest as the city gears up to implement its new legal framework. Enacted in May 2025, the Stablecoins Ordinance will take effect on August 1, 2025, requiring that all fiat-referenced stablecoin issuers obtain a license from the Hong Kong Monetary Authority (HKMA).

The Hong Kong authorities have said that only a few licenses—probably single digits—will be granted by the end of 2025, even if there are many applications. Secretary for Financial Services and the Treasury, Christopher Hui, validated a conservative regulatory approach that would give prospective licensees strict compliance and strong risk management top priority.

Prominent local and worldwide fintech companies dominate the competitive field, with special attention given to stablecoins connected to both the Hong Kong dollar and the offshore yuan. While maintaining strict standards for transparency, reserve backing, and anti-money laundering procedures, this new regulatory system seeks to draw institutional-grade issuers—hence creating a high barrier for involvement in Hong Kong's stablecoin market.