Stablecoins are being increasingly adopted by several governments, and Hong Kong is not far behind in integrating these fiat-pegged digital assets. Paul Chan, the Financial Secretary of Hong Kong, announced that the authorities have planned to launch the first batch of stablecoin issuer licenses in Q1 2025.
Once launched, stablecoin issuers must receive licenses to issue stablecoins in Hong Kong. The licensing regime is also applicable to any external companies that issue Hong Kong dollar-denominated stablecoins.
Paul Chan mentioned the upcoming stablecoin licenses while speaking at the World Economic Forum in Davos, Switzerland. This was also the forum where the Government of Bermuda announced its plan to move its entire economy on-chain, in partnership with stablecoin issuer Circle and crypto platform Coinbase.
Hong Kong’s stablecoin licenses
Hong Kong, a special administrative region in China, has been actively diving into the digital asset industry with policies and regulations that help expand it.
Hong Kong revealed the Stablecoin Ordinance in May 2025. The ordinance came into effect in August, providing a regulatory regime for stablecoin issuers to acquire licenses for issuing, offering, and marketing fiat-denominated tokens or Hong Kong dollar-pegged tokens.
Moreover, in July 2025, the Hong Kong Monetary Authority (HKMA) announced the issuance of the first batch of stablecoin licenses in Q1 2026, although the market had expected it to happen last year.
According to Paul Chan, the region has always been working for compliance-based digital asset activities that are applicable for crypto exchanges, stablecoin, and even tokenized assets — one of the growing digital asset niches.
Stablecoin licensing in Hong Kong is a comprehensive framework
One cannot underestimate the importance of Hong Kong’s stablecoin issuer license. Stablecoin issuers must go through a comprehensive regulatory framework to prevent any illegal activities that undermine the financial status of the region.
In addition, stablecoin issuers must hold sufficient assets in their reserve asset management. This is important to fully back the stablecoins. The issuers should also guarantee stablecoin holders — any individuals or entities — that the stablecoin can be redeemed for the fiat currency (Hong Kong dollar).
Earlier, the HKMA said that only a handful of licenses would be issued based on the strength and quality of applications.
Stablecoin industry records remarkable growth
The stablecoin industry has showcased unprecedented growth, specifically since 2025. The industry has reached nearly $305-$311 billion in total market cap. In the US, the GENIUS Act for payment stablecoins set the stage for several stablecoin adoptions, integrations, and launches.
It is amid this growth that Hong Kong’s deep leap into issuing stablecoin licensing became highly notable. On top of stablecoin issuance regulations, the government has already passed Digital Asset Development Policy 2.0, relaxed rules for Virtual Asset Trading Platforms, tokenized pilot programs, and other blockchain initiatives.
