On April 10, the Hong Kong Monetary Authority (HKMA) announced that it had officially issued stablecoin licenses to Dianping (a joint venture between Standard Chartered Bank, Hong Kong Telecom, and Anni Group) and HSBC in accordance with the Stablecoin Ordinance. HKMA Chief Executive Eddie Yue published an article in the official HKMA column, "Sound Development of Hong Kong's Compliant Stablecoin Ecosystem," stating that this licensing marks a new stage in Hong Kong's stablecoin regulation. Both licensees plan to issue Hong Kong dollar stablecoins in the first phase, focusing on four key scenarios: cross-border and local payments, tokenized asset trading, and innovative applications. Given that both institutions have banking backgrounds and have participated in CBDC experiments, this is conducive to exploring the synergistic effects of "future payments." The HKMA emphasized that the licensing threshold remains high, and the number of licenses will remain limited in the future. Subsequent on-site inspections and other means will be used to ensure the compliant operation of licensees. This move aims to address the pain points of the real economy through compliant stablecoins in the context of international regulatory trends, laying a solid foundation for Hong Kong as a digital financial hub.
Author: Yu Weiwen
Source: Hong Kong Monetary Authority
The Hong Kong Monetary Authority (HKMA) announced today that the Commissioner of Monetary Authority has granted stablecoin issuer licenses to two institutions under the Stablecoin Ordinance: Point Financial Technology Limited (a joint venture between Standard Chartered Bank (Hong Kong), HKT and Anni Group, hereinafter referred to as Point Financial) and HSBC, marking a new phase in the implementation of Hong Kong's stablecoin regulatory regime .
Looking back at the development of Hong Kong's stablecoin regulatory system, from legislative consultation, drafting, and legislation to the implementation and issuance of licenses, we have adhered to the risk-based principle of "same activities, same risks, same regulation." Based on international regulatory standards, we have established a regulatory system that is both prudent and flexible. This system safeguards the bottom line of managing risks related to financial stability, anti-money laundering, and investor protection, while also allowing for adjustments to regulatory requirements in a timely and appropriate manner based on international regulatory trends and market changes. The aim is to enable compliant stablecoins to play a positive role in various application scenarios and effectively address pain points in the real economy and financial activities.
Approval of license
As of the application deadline of September 30, 2025, the Hong Kong Monetary Authority (HKMA) received applications from 36 institutions. Faced with a large number of applications, the HKMA's regulatory team worked overtime for the past six months to comprehensively and thoroughly review each application in accordance with the specific provisions of the regulations. They also maintained communication with applicants as needed to clarify any questions and obtain relevant information, ensuring a rigorous and fair approval process throughout.
The Hong Kong Monetary Authority (HKMA) has always emphasized that licensing has a very high threshold, and the approval process mainly considers two aspects: (1) whether the applicant has 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 solutions and development plans. Among the 36 applications, Point Point and HSBC were granted licenses because they demonstrated their ability to manage risks prudently and proposed specific application scenarios and future development plans, in addition to meeting the relevant legal licensing requirements.
Application scenarios and development direction
Both licensed issuers plan to issue Hong Kong dollar stablecoins in the first phase. In summary, their business plans, application scenarios, and development paths include:
1. Cross-border payments: Leveraging the advantages of stablecoins and utilizing the issuer's extensive international business and partner network, while complying with the regulations and requirements set forth by regulatory authorities in other regions, to provide businesses and individuals with efficient, transparent, and lower-cost cross-border payment methods;
2. Local Payments: Leveraging existing business infrastructure and customer base, accelerate the adoption of stablecoins in Hong Kong, providing individuals and merchants with a secure, fast, and efficient transaction and settlement experience;
3. Tokenized Asset Trading: As a settlement tool for tokenized asset trading, compliant stablecoins can facilitate real-time on-chain transactions, help explore opportunities in the tokenized asset market, and improve market liquidity; at the same time, we will also explore application scenarios for using compliant stablecoins as collateral management.
4. Innovative Applications: Fully leverage the programmable nature of stablecoins to explore and promote innovative applications such as conditional payments and supply chain financing.
Both licensed issuers have banking backgrounds and have participated in the Hong Kong Monetary Authority's pilot projects on central bank digital currencies (CBDCs) and tokenized deposits. They possess in-depth understanding of the functions and application scenarios of various digital currencies, which is beneficial for exploring the possibilities of "future payments." One issuer has formed a consortium with local telecommunications, payment, and digital asset companies, enabling compliant stablecoins to leverage synergies. As their business steadily develops, both institutions plan to gradually introduce more diverse companies (such as scenario providers) to promote the application of compliant stablecoins. They will also continuously expand the application scenarios of stablecoins, explore more overseas markets, and consider introducing other currencies, depending on business operations, market conditions, and international regulatory developments.
Risk management measures
Licensed issuers are required to implement sound and comprehensive policies and risk management measures in accordance with regulatory requirements regarding reserve asset management and asset security, price stabilization mechanisms, redemption arrangements, and technological security. 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. Furthermore, 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 in their applications their ability to comply with and implement these measures.
Follow-up work
Before officially launching their compliant stablecoins, licensed issuers must complete relevant preparatory work, including testing of technology platforms and systems, implementation of risk control measures, and allocation of manpower resources. Based on the current business plans of the two institutions, we expect that regulated stablecoins in Hong Kong will be launched successively from the middle to the second half of this year.
Following the official launch of stablecoins, the Hong Kong Monetary Authority (HKMA) will conduct ongoing and effective supervision based on the individual licensee's business and risk profile. This will be achieved through measures such as on-site and off-site inspections, independent assessments, and meetings with the licensee's management to ensure compliance with relevant regulatory requirements. We will also review the effectiveness of the business plans submitted during the application process and the readiness for business expansion to ensure that the policy objectives of issuing stablecoin licenses in Hong Kong are reflected.
As for institutions that were not granted licenses in the first batch of applications, or other institutions that will apply in the future, the HKMA will maintain communication and exchange with them, and review these applications in accordance with relevant laws and uniform regulatory standards and requirements. Regarding the issuance of additional licenses in the future and the timing thereof, we maintain an open yet cautious attitude, and have no clear inclination at this stage. However, we must reiterate that considering the risks involved in the issuance business, the protection of users, and the market's capacity and long-term development, the issuance of licenses has a fairly high threshold, and even if more licenses are issued in the future, the overall number of licenses will be very limited. The operational effectiveness of the two licenses after their implementation and the market's reaction will also help us make a more comprehensive assessment.
Looking ahead, many regions globally are developing regulatory rules for stablecoins. Major international financial organizations, such as the Financial Stability Board, and local regulatory bodies are actively researching and discussing various aspects of stablecoin operations and risk management, including regulatory models for large multinational stablecoin issuers. It is anticipated that the global regulatory landscape will gradually become clearer. We will actively participate in these discussions and provide Hong Kong's implementation experience. In accordance with international regulatory trends and practices, we will periodically review the design of Hong Kong's regulatory system, striving to lay a solid foundation for Hong Kong's digital finance hub and provide an innovative yet robust path for stablecoin regulation.
