The Hong Kong Monetary Authority (HKMA) has not yet set a timeline for issuing a second batch of stablecoin licenses, according to Deputy Executive Director Eddie Chan. He stated that the decision will hinge on the operational performance of the initial licensees, and the total number of future licenses is expected to be very limited.
Limited License Pool and Stricter Scrutiny
Chan emphasized that new licenses will only be considered after a thorough evaluation of how the first batch of holders manage their stablecoin businesses. Institutions backed by Chinese funds have been advised to temporarily pause their applications, though some continue to engage with the HKMA. Excluding these entities, the pool of qualified candidates remains small, underscoring the scarcity of licenses.
HSBC Payme Offers Stablecoin Accounts but Excludes Mainland Users
Meanwhile, HSBC’s Payme platform now allows Hong Kong residents to open stablecoin accounts, marking a significant move by a traditional bank into the digital asset space. However, mainland Chinese users are currently ineligible under existing regulations, highlighting the jurisdictional complexities in cross-border stablecoin services.
Market Reaction: STABLE Token Rises 11.80%
Following the news, the stablecoin-focused token STABLE surged +11.80% in 24 hours, reflecting market sensitivity to Hong Kong’s regulatory developments. Analysts note that while the license pace has slowed, Hong Kong’s commitment to stablecoin regulation continues to bolster industry confidence.
Outlook and Regulatory Trend
The HKMA’s approach aligns with its sandbox-style regulation — starting with a controlled pilot before expanding. The second batch timeline will be tightly tied to the compliance and risk management performance of initial licensees. For stablecoin issuers eyeing Hong Kong, long waiting periods and stringent standards are now the norm.