Hong Kong is set to issue its first licenses for stablecoin issuers by March 2026, according to a statement from the Hong Kong Monetary Authority. The regulator has received 36 applications and is conducting a rigorous review, prioritizing fund protection and practical use cases. Officials have confirmed that only a select number of applicants will be approved in this initial round.
Hong Kong’s financial regulator is advancing plans to approve licensed stablecoin issuers. Eddie Yue, the chief of the Hong Kong Monetary Authority (HKMA), confirmed that 36 firms have applied for licenses under the new Stablecoin Ordinance.
The first licenses are expected to be issued by next March. This regulatory framework aims to protect users while fostering innovation in digital finance.
The licensing process is being conducted with high scrutiny. Yue stated that many applications contained only basic information, prompting requests for more details.
The HKMA is examining practical use cases, cash flow management, and stress management plans. Yue noted that the first-round licenses will be restricted for safety reasons, and not all of the 36 applicants will succeed in obtaining a license.
This move positions Hong Kong as a growing hub for digital assets. A clear regulatory framework is intended to attract banks, fintech firms, and international companies.
Smaller companies may face challenges meeting strict capital and reserve requirements. The regulator believes controlled growth is the preferable path.
Applicants will respond to the HKMA’s inquiries in the coming weeks. A small group will then become Hong Kong’s inaugural licensed stablecoin issuers.
Competition is anticipated to be fierce, with banks and major payment firms likely leading the race. Crypto-native companies may also qualify under the new rules.
