Hong Kong is set to begin issuing licenses for stablecoin issuers in the coming months, marking a significant step in the city’s ambition to become a global leader in digital asset regulation. Financial Secretary Paul Chan Mo-po revealed in a recent interview with China Daily that the city has already received “a number of applications” from entities seeking to become qualified stablecoin issuers.
This announcement follows the late May passage of Hong Kong’s Stablecoins Bill by the Legislative Council, positioning the special administrative region as one of the first jurisdictions worldwide to legislate stablecoins. The Stablecoins Ordinance, effective August 1, mandates that any individual or entity issuing fiat-backed stablecoins in Hong Kong—or those claiming to be pegged to the Hong Kong dollar—must secure a license from the Hong Kong Monetary Authority (HKMA).
Many prominent local and international companies have expressed their intent to apply for stablecoin licenses, including tech giants JD.com and Ant Group, banking institutions like Standard Chartered, and several logistics firms. Some of these companies aim to launch their own stablecoins later this year.
Chan emphasized Hong Kong’s “step-by-step” approach to developing stablecoins, with regulation serving as the foundational step to ensure balanced growth that fosters both innovation and “responsible, sustainable” development. Since July last year, various financial and technology firms have been actively testing their applications in the HKMA’s stablecoin issuer sandbox.
Initially, the city will focus on stablecoins pegged to fiat currencies. The second phase, Chan noted, may explore stablecoins linked to other “real and integrated with the real economy” assets. The government’s core “philosophy” is that stablecoins must have practical use scenarios, moving beyond purely speculative instruments. Chan highlighted cross-border payments as a key use case, citing their potential to enhance efficiency and reduce costs.