Hong Kong Prepares for Stablecoin Regulation as 40 Firms Seek Licenses

Hong Kong is currently processing license inquiries from over 40 major firms in anticipation of its new stablecoin regulation. The regulation, under the Stablecoin Bill, is set to take effect on August 1, when the Hong Kong Monetary Authority (HKMA) will begin accepting formal applications.

Several prominent companies have publicly expressed their intention to apply for these licenses, including JD.com, Ant Group, Standard Chartered, and Circle. Law firms assisting clients with their applications have reported ongoing consultations with other firms that are still finalizing their application materials.

Alex Zuo, who oversees the payments division at Cobo, noted that most of the candidates are large mainland Chinese firms. He also mentioned that many small and medium-sized companies are not qualified to apply and are only using the topic for short-term publicity. Entities preparing to apply include digital finance providers, logistics firms with overseas operations, and internet companies. Several of these firms are hiring for blockchain compliance and engineering roles. Use cases under consideration include stablecoin issuance, settlement infrastructure, and multi-address wallet tools to facilitate fiat conversion.

Zuo described a growing separation between companies committed to developing stablecoin-based services and those issuing public statements with limited technical or operational backing.

Qiao Yide, vice president of the Shanghai Development Research Foundation, stated that stablecoins are currency extensions and do not replace the current monetary system. He added that full transaction costs, when accounting for exchange fees, on-chain processing, and compliance checks, may be close to one percent.

The stablecoin process in Hong Kong now serves as a case for how financial authorities structure regulated issuance without adopting crypto-native practices wholesale. Licensing volume remains low, while demand among qualified institutions continues to increase.

Several jurisdictions are also advancing their own stablecoin frameworks, with Singapore, Japan, and the EU pursuing licensing rules focused on payments and reserve assets. Each model represents different approaches to integrating private digital currencies into formal oversight. The outcome in Hong Kong may shape how Asian financial centers balance reserve backing, compliance requirements, and operational scope.