The Hong Kong Monetary Authority (HKMA) is entering the final stages of its regulatory review, with the first batch of stablecoin issuer licenses expected to be granted this March. According to reports from a Legislative Council meeting held on Monday, the selection process remains highly exclusive.
A Stringent Selection Process
HKMA Chief Executive Eddie Yue emphasized that the regulator will maintain a conservative approach during the debut phase. Only a “very small number” of institutions are expected to receive approval in the initial round. The HKMA’s evaluation criteria are rigorous, focusing on four primary pillars:
- Use Case Viability: Practical applications for the stablecoin.
- Risk Management & AML: Robust anti-money laundering protocols and internal controls.
- Asset Quality: The transparency and stability of the underlying reserves.
- Cross-Border Compliance: Adherence to international activity regulations.
From Regulation to Reality
The “Stablecoin Ordinance,” which became law in August 2025, established a formal framework for digital assets in the region. Finance Secretary Paul Chan previously signaled that the first quarter of 2026 would be the turning point for the “same activity, same risk, same regulation” policy.
Despite receiving 36 applications in the first round, Yue noted that many candidates were disqualified due to a lack of technical expertise, operational readiness, or credible long-term business plans.
Key Contenders in the Pipeline
While the HKMA maintains a public registry that currently remains empty, several high-profile partnerships have signaled their intent to enter the market:
- Standard Chartered & Animoca Brands: Collaborating through their venture, Anchorpoint Financial.
- HSBC & ICBC: Two of the world’s largest banking institutions have expressed interest in obtaining local licenses.
The HKMA has cautioned that the issuance of these licenses should not be interpreted as an endorsement of any specific company or business model, but rather as a certification of regulatory compliance.
