HKMA reviews 36 stablecoin applications, focusing on reserves, risk management, and anti-money laundering safeguards.
Licensed stablecoins must keep full backing, honor redemptions fast, and cannot pay interest to holders.
Big names like Standard Chartered, Ant Group, and Bank of China HK are entering Hong Kong’s stablecoin sandbox.
Hong Kong is on the verge of approving its first stablecoin license, signaling a major step in digital finance regulation. The Hong Kong Monetary Authority (HKMA) is concluding a detailed review process under one of the world’s most comprehensive stablecoin frameworks.
Introduced in August 2025, the framework ensures that stablecoin issuers operate with strict reserve backing, robust risk management, and strong compliance measures. Eddie Yue, HKMA’s chief executive, confirmed at a Legislative Council meeting that the review is nearly complete, though only a small number of applicants will gain initial approval.
The regulator currently evaluates 36 applications, even though more than 40 firms initially showed interest. No issuer has yet been licensed, reflecting HKMA’s cautious approach. “Assessments focus on core areas such as stablecoin use cases, reserve backing, risk management, and anti-money laundering controls,” Yue explained.
Licensed issuers must maintain full 1:1 reserve support of high-quality, liquid assets and honor redemption requests within one business day. They cannot pay interest to stablecoin holders, emphasizing stability and compliance over profit generation.
Strict Rules Shape Hong Kong’s Stablecoin Landscape
The new licensing regime covers all issuers of fiat-backed stablecoins, including foreign tokens pegged to the Hong Kong dollar. Issuers must be locally incorporated or authorized organizations with independent directors overseeing compliance.
Moreover, issuers are required to conduct customer due diligence, utilize secure wallets, and adhere to anti-money laundering and counter-terrorist financing rules. HKMA retains broad supervisory powers, including adding license terms, introducing managers, or canceling licenses for noncompliance.
High-profile applicants already participating in HKMA’s regulatory sandbox include a joint venture between Standard Chartered, Animoca Brands, and HKT, operating as Anchorpoint Financial. Ant Group’s digital unit is pursuing a license, while Bank of China Hong Kong, HSBC, and ICBC have also indicated interest. However, HKMA emphasizes that early approvals do not equate to endorsement of business models.
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