Hong Kong to issue first stablecoin licenses next month, CE says

CoinDesk held Consensus 2026 on digital finance and emerging technologies from Tuesday to Thursday, with the acceleration of stablecoin license issuance becoming a highlight.

“The Hong Kong Monetary Authority (HKMA) is actively processing licensing applications,” Chief Executive John Lee Ka-chiu said at the conference’s opening ceremony. “We believe the first batch of stablecoin issuer licenses will be issued within the next month.”

Financial Secretary Paul Chan Mo-po said at the conference that stablecoins are helpful in easing funding pressure on the real economy, especially in payment and settlement. 

Hong Kong’s Stablecoins Ordinance, which took effect on August 1, 2025, establishes a licensing regime for issuers of fiat-referenced stablecoins in Hong Kong, placing the issuance and related activities of stablecoins under the formal regulatory oversight of the HKMA.

In terms of the licensing criteria, Chan stressed that “we ensure that licensees have real-world use cases, a credible and sustainable business model, as well as strong regulatory compliance capabilities”.

Chan also added that a small first batch of licenses will be issued in March, and more will follow subsequently.

Sion Xiang, community manager at the decentralized finance protocol Phoenix, said that issuing stablecoin licences could boost the internationalisation of the domestic currency and strengthen its resilience against external shocks.

However, Xiang pointed out potential risks that if banks or financial institutions use stablecoins as collateral, it could trigger a chain reaction of reserve imbalances across the financial system.

In addition,  he also mentioned that stablecoins may face the risk of de-pegging due to insufficient reserve assets. 

To address this threat, he emphasized the need for sufficient reserve assets, potentially through blockchain-based verification.

Looking ahead, Hong Kong’s digital asset regulatory rollout will forge ahead, as Paul Chan stated that the government is also finalizing the details of new licensing regimes for digital asset dealers and custodian service providers, with plans to introduce the relevant legislation this summer. 

“Together with the framework already in place, this will ensure that our regulatory regime comprehensively covers the key nodes of the digital asset ecosystem,” Chan added.