Hong Kong to Issue Fewer Than 10 Stablecoin Licenses by 2025

Hong Kong is preparing to issue fewer than 10 stablecoin licenses by August 2025, attracting significant interest from major players such as JD.com, Ant Group, and Standard Chartered. This initiative is part of a broader effort to enhance cross-border payment efficiency through the use of stablecoins. The Monetary Authority of Hong Kong is expected to enforce stringent anti-money laundering regulations, with the number of licenses likely to be in the single digits.

The licensing process has drawn up to 40 applications, primarily from notable financial and tech firms. The competition is intense, with applicants actively recruiting blockchain talent to meet the high technical and regulatory requirements. The regulatory guidelines, which include anti-money laundering measures, are expected to be announced within this month. The focus is on leveraging HKD and CNH stablecoins to improve cross-border transactions, although some critics argue that the cost-benefit of this initiative may be overstated.

Among the applicants are major players such as JD Coin Chain, Circle Innovation, and a consortium involving Standard Chartered, Animoca Brands, and HKT. Chinese fintech firms like Ant International and Ant Digital Technology have also shown interest in obtaining these licenses. The rigorous licensing process is expected to result in only a few licenses being granted by the end of 2025, leading to a highly competitive environment.

The stablecoin licensing system aims to regulate companies that issue stablecoins tied to fiat currencies. This interdisciplinary field requires in-depth knowledge of finance, technology, and cryptocurrency, making the application process highly competitive. The limited availability of licenses has sparked a gold rush among major firms vying for a spot in the stablecoin market. The high bar set by the regulatory requirements means that only the most prepared and knowledgeable applicants will succeed.

While stablecoins have the potential to expand the use of fiat currencies and improve the efficiency of cross-border payments, some analysts caution against overestimating their disruptive impact on the current international monetary system. The actual efficiency gains may not be as significant as anticipated, but the introduction of stablecoins could still have a notable effect on the financial landscape. The intense competition for stablecoin licenses in Hong Kong underscores the region's commitment to becoming a hub for virtual asset regulation. As the licensing system takes effect, it will be crucial for applicants to demonstrate their technical expertise and regulatory compliance to secure one of the limited licenses available.