HKMA Chief Signals Imminent Stablecoin License Approvals as Review Nears Completion

• HKMA signals imminent stablecoin approvals as licensing reviews reach final stage
• Limited first batch of stablecoin licenses reflects regulator’s cautious approach
• Empty public registry underscores strict standards ahead of initial approvals

Hong Kong’s stablecoin regulatory process is approaching a critical stage, according to Reuters. During a Legislative Council meeting, Hong Kong Monetary Authority Chief Executive Eddie Yue said reviews of stablecoin license applications were nearly complete. Consequently, the regulator is preparing to issue its first stablecoin issuer licenses as early as March.

Yue stated that the initial approvals would be limited in number. He explained that only a very small group of applicants would receive licenses in the first batch. Besides managing market expectations, his comments reflected the authority’s cautious regulatory approach.

At a subsequent media briefing, the HKMA outlined the core focus areas of its assessments. Officials said reviews emphasized viable use cases and sound risk management frameworks. Additionally, the regulator examined anti money laundering controls and internal governance standards. The quality and transparency of backing assets also remained central to the evaluation process. Licensed issuers must comply with Hong Kong’s cross border activity rules, which add further compliance obligations.

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Regulatory Discipline Shapes Early Licensing Decisions

The licensing process follows the Stablecoin Ordinance, which took effect last August. Under the ordinance, stablecoin issuers must obtain authorization from the HKMA before operating locally. Earlier, Finance Secretary Paul Chan said approvals were expected during the first quarter of 2026. Hence, Yue’s latest comments suggest regulatory preparations are nearing their final phase. However, the HKMA has repeatedly raised concerns about applicant readiness. Yue previously said several applicants lacked credible implementation plans. Moreover, some proposals failed to demonstrate sufficient technical capabilities. These shortcomings influenced the regulator’s decision to restrict early approvals.

Interest in Hong Kong’s stablecoin framework remains strong despite strict standards. According to HKMA disclosures, 36 institutions applied in the first licensing round, with several major financial firms expressing public interest in the market. Standard Chartered’s Hong Kong arm partnered with Animoca Brands to establish Anchorpoint Financial Limited for a license application.

Additionally, HSBC and the Industrial and Commercial Bank of China signaled intentions to pursue stablecoin authorization. However, the HKMA has not confirmed any applicants. The regulator also warned that early licensing decisions should not be interpreted as endorsements of specific business models.

Public Registry Reflects Pending Approvals

In July 2025, the HKMA launched a public registry to track licensed stablecoin issuers operating in Hong Kong. The registry aims to improve transparency and allow users to verify compliant entities. According to Reuters, the database remained empty as of Monday. This indicates that no issuer has yet received final approval under the new regime.

HKMA officials previously emphasized that applicants must fully satisfy regulatory requirements before appearing on the registry. Consequently, the absence of listed entities reflects the authority’s deliberate pace rather than weak market participation. The registry is expected to update only after licenses are formally granted and publicly disclosed.

In conclusion, Hong Kong’s stablecoin licensing framework is transitioning from policy development to execution. The HKMA’s selective approach underscores its focus on financial stability, compliance strength, and operational readiness as approvals draw closer.

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