Hong Kong is preparing to take a major step in digital asset regulation by granting its first stablecoin licenses as early as March.
Quick Summary – TLDR:
- Hong Kong Monetary Authority (HKMA) will begin issuing stablecoin licenses in March 2026.
- Only a “very small number” of issuers will be approved initially.
- The move follows the implementation of the Stablecoin Ordinance in August 2025.
- Licensing criteria focus on risk controls, AML compliance, and asset backing quality.
What Happened?
The Hong Kong Monetary Authority confirmed it is wrapping up reviews for stablecoin issuer licenses, with approvals expected to begin in March. HKMA Chief Executive Eddie Yue shared the update during a Legislative Council meeting, noting that only a few licenses would be granted at the start to maintain control and ensure regulatory credibility.
Hong Kong regulator targets March for first stablecoin licences https://t.co/IN6irphXBh
— Reuters Asia (@ReutersAsia) February 2, 2026
Hong Kong Moves from Framework to First Approvals
The upcoming rollout marks a shift from planning to enforcement for Hong Kong’s digital asset strategy. The Stablecoin Ordinance, which came into effect in August 2025, requires any entity issuing a stablecoin from Hong Kong to be officially licensed by the HKMA.
Hong Kong is adopting a “same activity, same risk, same regulation” approach to crypto assets. Finance Secretary Paul Chan had earlier indicated that licenses were targeted for Q1 2026. The March timeline suggests the regulator is slightly ahead of schedule.
While over 36 institutions submitted applications, Yue emphasized that not all applicants were ready. Some lacked credible implementation plans or technical capacity, leading to a tighter initial selection.
What the HKMA Is Looking For?
The licensing process is far from a rubber stamp. The HKMA made it clear it is assessing applications based on:
- Use cases for the stablecoin (payments, settlement, institutional use).
- Risk management and AML controls.
- Quality and composition of reserve backing assets.
- Compliance with cross-border rules.
The focus is on practical, operationally ready firms, not speculative or loosely structured ventures. The regulator will also monitor how licensed tokens are distributed and used, with continued oversight after approval.
Who’s in the Running?
Though the HKMA hasn’t named specific applicants, major players have shown interest:
- Standard Chartered Hong Kong and Animoca Brands formed Anchorpoint Financial Limited to pursue a license.
- HSBC and the Industrial and Commercial Bank of China (ICBC) also indicated interest in applying.
Despite the buzz, HKMA has warned that early approvals should not be viewed as endorsements of any firm or token. A public registry launched in July 2025 will list all licensed issuers, but as of now, it remains empty.
Why Stablecoins Matter for Brokers and Payments?
Stablecoins are increasingly used by CFD brokers and institutional payment providers due to their efficiency in cross-border settlements. Compared to traditional card-based payments that suffer from 2 to 4 percent fees and delayed processing, stablecoins can settle transactions in under an hour at significantly lower costs.
Melissa Stringer, a fractional CPO and product strategy consultant, noted:
This positions licensed Hong Kong stablecoins to be especially useful in:
- Client funding and internal settlements for brokers.
- Cross-venue collateral for liquidity providers.
- Integrated payment rails on trading platforms.
SQ Magazine Takeaway
I think this move by Hong Kong is a game changer, not just for Asia but for global crypto regulation. By prioritizing quality over quantity, the HKMA is showing it wants real-world, safe use cases for stablecoins, not hype. It also sends a strong message that stablecoins can thrive under responsible oversight. If the first batch of issuers performs well, this could pave the way for more licenses, greater innovation, and trust in crypto payments. Honestly, this kind of clarity is something the entire crypto industry has been waiting for.
