Hong Kong Limits Stablecoin Licenses to 10 by 2025 Amid Global Demand

Hong Kong is set to issue fewer than 10 stablecoin licenses by August 2025, as the region's new stablecoin licensing program has garnered intense demand from international companies. Over 40 firms, including prominent names like JD.com and Ant Group, have applied or are in the process of applying for these licenses. The licensing program, which will be overseen by the Hong Kong Monetary Authority (HKMA), aims to position Hong Kong as a global hub for stablecoin issuance and blockchain finance.

The HKMA will open applications on August 1, with a focus on fiat-pegged stablecoins that adhere to strict anti-money laundering (AML) and risk control measures. The regulator's cautious approach is evident in the limited number of licenses expected to be granted, ensuring robust oversight and investor protection. The licensing regime is primarily targeted at stablecoins pegged to the Hong Kong dollar (HKD) and the offshore Chinese yuan (CNH), reflecting the region's strategic interest in enhancing cross-border payment efficiency and reducing transaction costs, particularly in less developed markets.

Financial Secretary Paul Chan emphasized the government's gradual approach, starting with the establishment of a regulatory framework to attract international stablecoin issuers. This framework is part of Hong Kong's broader Digital Asset policy, introduced under the new “LEAP” framework in June 2025. The LEAP framework not only regulates stablecoin issuance but also supports pilot programs to explore the use of stablecoins in payments and financial services. HKMA chief Eddie Yue cautioned the public to approach stablecoins objectively, clarifying that they are payment instruments, not investment products.

The competitive nature of the licensing process requires applicants to demonstrate expertise in finance, technology, and cryptocurrency. The limited number of licenses is expected to spark a "gold rush" among companies eager to enter the stablecoin market. Hong Kong's regulatory stance contrasts with mainland China's ban on cryptocurrency trade and mining, reflecting a more open and transparent approach to regulated crypto enterprises. This regulatory environment is designed to facilitate foreign companies and foster innovation in digital finance.

Offshore yuan-pegged stablecoins have garnered significant interest, with Chinese firms like JD.com and Ant Group seeking approval. These stablecoins could contribute to the internationalization of the renminbi. The HKMA has indicated that foreign currency-based stablecoins will require coordination with relevant foreign regulators to manage exchange rate risks and broader financial impacts. An example of strategic partnerships in this space is the alliance between Goldstream Investment and AnchorX, a stablecoin issuer licensed in Hong Kong, to issue an offshore renminbi-pegged stablecoin in Kazakhstan. This partnership aims to reduce costs and enhance the circulation of offshore yuan beyond traditional payment systems.