On February 2, Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue Wai-man informed the media following a Legislative Council Financial Affairs Committee meeting that the authority is currently evaluating the received applications for stablecoin issuer licenses. The HKMA has requested supplementary materials from some institutions, including detailed information on specific use cases for the stablecoins, risk management frameworks, and the categories of reserve assets. The target is to issue Hong Kong's first batch of stablecoin issuer licenses by March of this year. However, he simultaneously emphasized, "The number of licenses in the first batch will certainly not be large, with the goal being prudence." Yue particularly stressed the regulatory compliance principle for cross-border activities. He stated that, according to Hong Kong's established regulatory framework, any licensed operator involved in cross-border business must adhere to the regulatory requirements of the jurisdictions where the business is conducted, whether that is Mainland China, Singapore, ASEAN, or other markets. "This depends on whether each applicant's use case involves cross-border needs," he added. Regarding stablecoins issued outside Hong Kong, Yue reiterated that to be used for retail investors in Hong Kong, they must obtain a license in Hong Kong. This licensing requirement mandates that the issuing entity establish an office in Hong Kong and hold its reserve assets within the city. The market is paying close attention to which entities will receive the first licenses. Numerous technology and financial giants have made significant inroads in the stablecoin space. In May 2025, Ant International, an affiliate of Ant Group, became the first client of HSBC's tokenized deposit-based blockchain settlement service. Deposits from affiliated companies in HSBC accounts were tokenized and used to successfully execute instant internal fund transfers. Another key entity, Ant Digital Technologies, the technology commercialization arm of Ant Group, established its overseas headquarters in Hong Kong in April 2025. Ant Digital Technologies possesses numerous globally leading technologies and patents in the blockchain field. JD.com's JD Bitalk Tech (Hong Kong) was one of the three initial participants announced by the HKMA in its stablecoin sandbox testing program in July 2024, joining Standard Chartered PLC and RD Technologies as pioneers. Shortly thereafter, Xiaomi's Airstar Bank announced a stablecoin collaboration with JD Bitalk Tech, sparking market speculation about major internet firms' strategic moves into Web3. As one of Hong Kong's three note-issuing banks, Standard Chartered PLC, with its robust financial infrastructure and first-mover sandbox testing experience, is also viewed by the market as a strong contender for a license. Following the enactment of the Stablecoin Ordinance on August 1, 2025, the initial application window closed on September 30 of the same year. According to previously disclosed information from the HKMA, a total of 36 applications were received during this period. The applicant institutions were diverse, encompassing banks, technology firms, securities/asset management/investment companies, e-commerce platforms, payment institutions, and startups/Web3 enterprises.
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