Hong Kong's stablecoin licensing regime is about to cross a major threshold. Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA), told the Legislative Council that reviews of stablecoin license applications are in their final stretch. The regulator is preparing to issue the first batch of stablecoin issuer licenses as early as March. However, Yue made it clear that only a very small number of applicants will get approved initially — a deliberate move to manage expectations and reflect the authority's cautious approach.
What the HKMA is Checking
At a subsequent media briefing, HKMA officials spelled out the core evaluation criteria. The review zeroes in on practical use cases, solid risk management frameworks, anti-money laundering controls, and internal governance standards. The quality and transparency of reserve assets are also paramount. Licensed issuers must comply with Hong Kong's cross-border activity rules, adding further compliance layers.
Heavy Interest, Tight Screen
The licensing framework is based on the Stablecoin Ordinance, enacted last August. Finance Secretary Paul Chan had earlier said approvals would come in the first quarter of 2026. Yue's latest remarks confirm preparations are on track. But he has previously flagged concerns about applicant readiness — some proposals lack credible implementation plans or sufficient technical capabilities. These shortcomings pushed the regulator to restrict early approvals.
Despite the high bar, market appetite remains strong. According to HKMA disclosures, 36 institutions applied in the first round. Standard Chartered's Hong Kong unit teamed up with Animoca Brands to set up Anchorpoint Financial Limited for a license bid. HSBC and Industrial and Commercial Bank of China also signaled interest. The HKMA, however, has not confirmed any applicants and warned that early licensing decisions should not be taken as endorsements of specific business models.
Public Registry Still Empty
In July 2025, the HKMA launched a public registry to track licensed stablecoin issuers and boost transparency. As of Monday, the database remained empty. No issuer has yet received final approval under the new regime. HKMA officials have emphasized that applicants must fully satisfy all requirements before being listed. The empty registry thus reflects the regulator's deliberate pace rather than weak interest. Updates will come only after licenses are formally granted and disclosed.