Hong Kong sets strict conditions for future stablecoin licenses after first approvals

The Hong Kong Monetary Authority (HKMA) warns that only a few companies will be granted stablecoin issuer licenses going forward.

According to the HKMA’s Chief Executive Eddie Yue, future approvals will depend on the market’s performance based on the first two approved operations.

HKMA warns of limited stablecoin licenses in Hong Kong

The Hong Kong Monetary Authority (HKMA) granted its first two licenses for stablecoin issuers under Hong Kong’s Stablecoins Ordinance, which took effect in August 2025. However, the regulator warned that future approvals will be “very limited.” The plan is to observe how the market develops before issuing any more licenses.

HKMA Chief Executive Eddie Yue said on May 5 that the city will take a “steady” approach to stablecoins. He explained that the HKMA will first watch how the first two stablecoins perform after they launch, and only after comparing the actual risks with expectations will new applications be considered.

The regulator received 36 applications for stablecoin licenses last year. However, the HKMA has stressed that if or when new licenses are issued in the future, the total number will stay very small.

HKMA Deputy Chief Executive Daryl Chan added that licensees must complete significant preparation before their stablecoins go live. This includes system checks, risk management reviews, and third-party verification. Cross-border use cases also need approval from foreign regulators.

Who can issue stablecoins in Hong Kong?

Cryptopolitan previously reported that Anchorpoint Financial and the Hong Kong and Shanghai Banking Corporation (HSBC) received the first two stablecoin licenses issued.

HSBC has announced plans to introduce a Hong Kong dollar-denominated stablecoin later this year that will be integrated into its HK mobile banking app and also PayMe.

PayMe currently serves over 3.3 million users. The stablecoins will be secured by high-quality liquid assets held separately.

Anchorpoint is planning for a phased launch of its stablecoin, called HKDAP (HKD At Par), starting in the second quarter of 2026. The public will be able to access the stablecoin through selected authorized distributors.

HKMA Deputy Chief Executive Daryl Chan added that both firms must verify that their systems meet standards, confirm risk management measures and staffing levels, and obtain foreign regulatory approval for any cross-border use cases before going live.

Once the stablecoins are live, the HKMA will continue to monitor their operations.

Due to stablecoins being a new asset class, there is no replicable standard for Hong Kong to follow directly. Chief Executive Yue stated that the HKMA will exchange experience with the Financial Stability Board and other international bodies to refine both its licensing regime and future supervisory arrangements.

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