Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue Wai-man stated that the official issuance of stablecoin issuer licenses marks a new phase in the implementation of Hong Kong's regulatory framework for stablecoins. He indicated that regulated stablecoins in Hong Kong are expected to be launched successively from mid to the second half of this year. Regarding the potential issuance of additional licenses in the future, Yue noted that there is no clear inclination at this stage. He reiterated that the licensing process involves substantially high thresholds, and even if more licenses are issued later, the overall number of licenses will remain very limited.
On April 10, 2026, the Monetary Authority, under the Stablecoin Ordinance, granted stablecoin issuer licenses to two institutions—Anchor Financial Technologies Limited (a consortium formed by Standard Chartered Bank (Hong Kong), Hong Kong Telecom, and an unnamed group, referred to as Anchor) and HSBC Bank. This move signifies a new stage in the implementation of Hong Kong’s stablecoin regulatory system. Both licensed issuers plan to issue Hong Kong dollar-denominated stablecoins in the initial phase. Their business plans, application scenarios, and development directions include:
- Cross-border payments: Leveraging the advantages of stablecoins and the extensive international business and partner networks of the issuers, they aim to provide enterprises and individuals with efficient, transparent, and lower-cost cross-border payment methods, in compliance with regulations and requirements set by authorities in other regions. - Local payments: Utilizing existing business infrastructure and customer bases to accelerate the adoption of stablecoins in Hong Kong, offering secure, fast, and efficient transaction and settlement experiences for individuals and merchants. - Tokenized asset trading: Serving as settlement tools for tokenized asset transactions, compliant stablecoins can facilitate real-time on-chain transactions, support the development of the tokenized asset market, and enhance market liquidity. They will also explore the use of compliant stablecoins in collateral management scenarios. - Innovative applications: Fully leveraging the programmable features of stablecoins to explore innovative applications such as conditional payments and supply chain finance.
Both licensed issuers have banking backgrounds and have participated in the HKMA’s experimental projects related to central bank digital currency (CBDC) and tokenized deposits. This gives them a deeper understanding of the functions and application scenarios of various digital currencies, which is conducive to exploring the possibilities of "future payments." One of the issuers has formed a consortium with local telecommunications, payment, and digital asset enterprises in Hong Kong, enabling compliant stablecoins to achieve synergistic effects.
The two institutions plan to gradually introduce more enterprises, such as scenario providers, to collaborate on promoting the application of compliant stablecoins after their businesses are steadily established. They will also continue to expand the application scenarios of stablecoins, explore more overseas markets, and consider introducing other currency denominations in response to business operations, market conditions, and international regulatory developments.
The HKMA emphasized that the licensing process involves substantially high thresholds. Approval considerations primarily focus on two aspects: (1) whether the applicant possesses sufficient risk management capabilities and experience and complies with relevant regulations in Hong Kong and other regions; and (2) whether the applicant can propose specific application scenarios and feasible business plans and development strategies. Among the 36 applications received, Anchor and HSBC Bank demonstrated their ability to manage risks prudently and presented concrete application scenarios and future development plans, meeting the statutory licensing requirements, and thus were granted licenses.
Licensed issuers are required to implement comprehensive policies and risk management measures in areas such as reserve asset management and security, price stability mechanisms, redemption arrangements, and technological security, in accordance with regulatory requirements. They must also establish robust anti-money laundering systems, including using blockchain monitoring tools in daily operations to detect suspicious transactions and take appropriate follow-up actions. Additionally, they must verify the identities of stablecoin holders either independently or through reliable third-party partners to ensure the effectiveness of monitoring measures. Both licensed issuers demonstrated their capability to comply with and implement these measures in their applications.
Before officially launching their compliant stablecoins, licensed issuers must complete relevant preparatory work, including technology platform and system testing, implementation of risk management measures, and staffing arrangements. Based on the current business plans of the two institutions, regulated stablecoins in Hong Kong are expected to be launched successively from mid to the second half of this year.
After the stablecoins are officially launched, the HKMA will conduct ongoing and effective supervision through measures such as on-site examinations, off-site reviews, independent assessments, and meetings with the management of licensed issuers, tailored to the business and risk profiles of individual licensees, to ensure compliance with relevant regulatory requirements.
For institutions that were not granted licenses in the first batch of applications or those that may apply in the future, the HKMA will maintain communication and exchange, reviewing these applications in accordance with relevant laws and uniform regulatory standards and requirements. Regarding the timing and possibility of issuing additional licenses in the future, the authority maintains an open yet cautious stance, with no clear inclination at this stage. However, the authority reiterated that, considering the risks involved in the issuance business, user protection, and market capacity and long-term development, the licensing process involves substantially high thresholds. Even if more licenses are issued in the future, the overall number of licenses will remain very limited.
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