Hong Kong’s 2025 Stablecoin Licensing to Yield Limited Approvals

Under Hong Kong's new licensing framework, the Monetary Authority of Hong Kong (HKMA) may authorize just a single-digit number of issuers in 2025 as firms prepare applications ahead of the August 1 effective date.

High Standards Limit Applicant Pool

Industry insiders and advisory firms anticipate only a small number of licenses to be granted in the first year. Firms, including Ant International and JD.com's offshore units, are among the first movers planning to apply for issuer status under the new regime.

We hope that [stablecoins] will focus on addressing the difficulties and pain points in the real economy, such as cross-border payments, especially when involving local currencies with higher risks, or when the local financial system is not so well-developed, creating certain challenges for cross-border payments,

Christopher Hui, Secretary for Financial Services and the Treasury, told Hong Kong’s newspaper, Ming Pao.

The HKMA issued draft supervision guidelines and AML/CFT requirements, inviting feedback on how licensed issuers should manage fiat reserves, ensure transparency and implement anti-money laundering controls. Market observers note that high capital and operational standards may limit eligible applicants to established financial institutions and large fintech firms.

Regional Hub Strategy

Hong Kong's Legislative Council passed the Stablecoins Ordinance on May 21, 2025, creating a legal requirement that any entity issuing or backing stablecoins with Hong Kong dollars obtain a license from the HKMA. The law includes provisions for reserve management, redemption processes and risk controls designed to safeguard investors and the public.

The legislation positions the city as a regional digital asset hub, complementing efforts like the virtual asset trading platform licensing regime introduced in 2023. While the initial framework targets Hong Kong dollar-pegged tokens, interest is growing in offshore yuan-pegged tokens.

The city will monitor international standards to maintain competitive yet prudent regulation as issuers prepare applications for the new framework.