Hong Kong Opens Stablecoin Licenses Applications

The Hong Kong Monetary Authority (HKMA) has begun accepting applications for stablecoin licenses, following the passage of the Stablecoin Ordinance by the Hong Kong Legislative Council on May 21, 2025. This new regulatory framework will come into effect on August 1, 2025, and will govern the issuance and operation of stablecoin services in the region.

Multiple international companies have expressed interest in obtaining these licenses, with over 40 applications already submitted. Among the notable applicants are JD CoinChain, a crypto operating on a decentralized blockchain platform, Standard Chartered, a multinational bank partnering with Animoca and HKT to form a joint venture, Circle Innovation Technology Co., a non-profit facilitator of technology solutions and innovation, and Ant International, a global digital payment provider. These companies are vying for a limited number of licenses, with expectations that fewer than 10 will be issued.

The HKMA has set stringent requirements for stablecoin licenses, including a minimum paid-up share capital of at least HKD 25 million, incorporation of a physical office in Hong Kong, compliance with risk and reporting management, and adherence to transparency and security standards. These measures aim to regulate fiat-referenced stablecoins and promote digital asset activities in the region.

The competitive process for obtaining a stablecoin license in Hong Kong reflects the region's commitment to fostering innovation while ensuring robust financial compliance. The HKMA's cautious approach to regulating stablecoins mirrors the strategy of the Hong Kong Securities and Futures Commission (SFC) in managing virtual asset trading platform licenses. This deliberate approach underscores the region's dedication to enhancing investor protection and public confidence, making it an attractive destination for stablecoin issuers and operators.

The new stablecoin licensing regime is expected to position Hong Kong as a leading hub for digital finance in Asia. The high level of competition for licenses indicates a challenging path ahead for applicants. However, the stringent regulatory framework aims to enhance investor protection and public confidence, making Hong Kong an attractive destination for stablecoin issuers and operators. The upcoming stablecoin licensing regime, coupled with HKMA's and SFC's meticulous oversight, underscores the region's commitment to fostering innovation while ensuring robust financial compliance.