Paul Chan told attendees in Davos that Hong Kong will issue a first batch of stablecoin licenses in Q1 2026 after launching a licensing regime in August, aiming to attract providers while protecting investors. (Ed. note: The timetable marks the regime’s first issuances since it took effect.)
The licensing rules require firms offering or marketing stablecoins to retail investors to secure approval from the Hong Kong Monetary Authority. Applicants must meet standards on reserve assets, redemption at par, client fund segregation and anti-money laundering controls.
As of September 2025, 36 companies had applied, according to local reporting stated. Known applicants include a joint venture of Standard Chartered, Animoca Brands and HKT, while Ant Group‘s Alipay and JD.com were reportedly told to suspend Hong Kong licensing attempts.
Chan described the city’s approach as “proactive yet prudent”. He added that digital assets can improve transparency, efficiency and capital allocation to the real economy.
Global interest in stablecoins is growing, with a market cap near $309 billion, as data shows here. Ethereum co-founder Vitalik Buterin urged “better decentralized stablecoins” to improve resilience.
On prediction market Myriad, users placed just a 3% chance of stablecoins topping $360 billion this month, according to the market page report. Hong Kong has granted 11 trading-platform licenses since 2023, issued $2.1 billion in tokenized green bonds, and launched spot ETFs for Bitcoin and Ethereum.
The city also faces fallout from the 2024 JPEX collapse, which cost customers about $205 million, and authorities have charged 16 people; initial court hearings begin in March.
