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Here's What You Need to Know About Hong Kong's Stablecoin Policy Launch
BlockBeatsJul 30, 2025
As of August 1, 2025, the Hong Kong Monetary Authority (HKMA) will open applications for stablecoin issuance licenses, marking a new stage in the formal implementation of stablecoin development in Hong Kong.
This policy has been in the works for a long time. Over the past year, the HKMA has promoted sandbox testing for stablecoin application scenarios and gradually clarified regulatory requirements and application paths. Now, participating institutions will move from testing to issuing and circulating coins under a formal regulatory system.
According to incomplete statistics, dozens of institutions have expressed their intention to apply for stablecoin licenses. At the same time, more local banks, technology companies, and Web3 teams are making further preparations around clearing systems, custody mechanisms, and payment interfaces.
This article will continue to track the latest news related to Hong Kong stablecoins for practitioners to consult.
# Hong Kong Stablecoin Regulatory Progress
## I. Regulatory System Officially Takes Effect
The "Stablecoin Ordinance" will officially take effect on **August 1, 2025**.
The HKMA will simultaneously gazette four related documents (available in English only):
* Consultation Conclusions and Formal Guidelines on the "Licensing and Supervision of Licensed Stablecoin Issuers"
* Consultation Conclusions and Formal Guidelines on the "Guideline on Anti-Money Laundering and Counter-Terrorist Financing (Applicable to Licensed Stablecoin Issuers)"
* "Summary Note on Licensing Regime for Stablecoin Issuers"
* "Summary Note on Transitional Arrangements for Existing Stablecoin Issuers"
## II. Licensing Process and Requirements
The HKMA will accept the first round of stablecoin issuer license applications from **August 1, 2025, to September 30, 2025**.
Institutions intending to apply are encouraged to proactively contact the HKMA via the official email address before **August 31** to communicate regulatory expectations and feedback.
The HKMA reminds market participants: public communication needs to be cautious, and it is illegal to falsely claim to have obtained a license or be applying for one.
## III. Application Conditions and Compliance Requirements
The identity of all Hong Kong compliant stablecoin holders must be verified, **equivalent to real-name registration**.
**Raymond Chan**, Assistant President (Regulation and Anti-Money Laundering) of the HKMA, said that this regulation is stricter than the previous "whitelist" system; it may be relaxed in the future as technology matures.
Legislative Councilor **Duncan Chiu** added: The HKMA will indeed implement KYC, and real-name registration is one possible method. The specific plan will be proposed by the issuer and confirmed after review by the HKMA.
## IV. HKMA's Attitude Towards Fiat-Pegged Coins
**Arthur Yuen**, Deputy Chief Executive of the HKMA, stated:
* Applications can be made for stablecoin licenses pegged to a single fiat currency.
* Applications can also be made for stablecoin licenses pegged to a basket of fiat currencies.
* However, the currency must be clearly stated when applying.
Arthur Yuen also emphasized: **The licensing threshold is very high**, and the first license is expected to be issued at the **beginning of next year**.
## V. Transitional Arrangements and Categorized Handling
After the implementation of the "Stablecoin Ordinance," there will be a **6-month transition period**, and the HKMA will handle existing issuers in categories:
* **Those who meet regulatory requirements**: can obtain a temporary license;
* **Those who fail to meet the standards within 3 months**: must end their business within 4 months;
* **Those who do not meet the standards**: must terminate operations within 1 month after receiving the notice.
Requirements include: full reserves, processing redemptions within 1 day, establishing an entity in Hong Kong, maintaining financial resources, KYC, and transaction monitoring.
Violators will face penalties such as fines, suspension, or revocation of licenses.
# Latest Statements on Stablecoins from Hong Kong Policymakers
With the "Stablecoin Ordinance" set to officially take effect on August 1, 2025, the Hong Kong government and related institutions have intensively released policy signals for stablecoins on various occasions. These statements cover not only regulatory logic and licensing mechanisms but also key issues such as pegged currencies, application scenarios, and risk management, gradually outlining the actual operational profile of the Hong Kong stablecoin regulatory system.
## I. Stablecoins are Not Speculative Tools, but Financial Infrastructure
In all public statements, one repeatedly emphasized position is: **Stablecoins should not become tools for market speculation.**
On July 20, Hong Kong Financial Development Council Chairman Hong Pi-zheng pointed out at the annual report release that stablecoins should play their "stable" role, and the digitalization of asset markets is a long-term battle that cannot be viewed with short-sightedness. He also said that different assets will be "tokenized" in the future, but this process will not be completed in 24 hours, nor should it be expected to make the entire financial system "fully on-chain" in the short term.
Christopher Hui, Secretary for Financial Services and the Treasury, has repeatedly reiterated similar views in the past few months. He believes that stablecoins should be regarded as financial development tools to improve financial efficiency, rather than means of making money. On June 29, he said that the government will adhere to a clear regulatory concept and require issuers to have capital, reserve mechanisms, and redemption capabilities to prevent systemic risks and protect monetary sovereignty.
Financial Secretary Paul Chan also pointed out in several signed articles that stablecoins have programmable characteristics and can be used for payment automation and financial service process restructuring, but their development should not deviate from the focus on the needs of the real economy. He emphasized: "It is not simply the pursuit of technology, let alone a carnival of tools."
Voices from central think tanks have also pointed out the macroeconomic background of stablecoins. On June 21, Li Yang, Chairman of the National Institution for Finance and Development, said that stablecoins are essentially an on-chain extension of the US dollar and a tool for the United States to promote the digitalization of US dollar hegemony. China should take advantage of the situation to promote the internationalization of the RMB and consider developing a complementary mechanism between RMB stablecoins and central bank digital currencies.
## II. Licensing System Tightens, Application Thresholds are High
Hong Kong's stablecoin regulatory system will adopt a high-standard review mechanism. On July 30, Arthur Yuen, Deputy Chief Executive of the HKMA, clearly stated at a technical briefing that the licensing threshold is "very high," and a large number of licenses will not be issued at once in the first stage, but will be evaluated one by one based on the quality of the application materials. The first license is expected to be issued at the beginning of next year.
HKMA President Eddie Yue previously wrote that the compliance requirements faced by stablecoin issuers are almost equivalent to those of financial institutions such as e-wallets and banks, and consistent supervision will be adopted in terms of asset reserve management, redemption policies, and anti-money laundering mechanisms. Only a "small number of licenses" will be issued in the initial stage, and the issuer's business plan, actual scenarios, reserve capacity, and technical security will be重点评估.
Christopher Hui has repeatedly pointed out that issuers must "complete within one day" after the user initiates redemption, and at the same time establish a stable mechanism and customer asset isolation mechanism to fully implement anti-money laundering and counter-terrorist financing regulations.
## III. Application Scenarios Prioritize Cross-border Settlement, Followed by Web3
Compared with emphasizing the narrative of "on-chain" or "DeFi-ization," policymakers have always positioned stablecoins with **cross-border payments and clearing systems** as the main axis.
Eddie Yue said that the first batch of stablecoins will mainly focus on cross-border trade settlement and Web3 scenario testing. He also emphasized that sandbox participation is not a prerequisite for licensing, and even if institutions have entered the testing scope, it does not mean that they will necessarily obtain a formal license in the future.
Christopher Hui mentioned in an interview that stablecoins can be used as an alternative payment method for local currency fluctuations in the "Belt and Road" region, especially suitable for infrastructure projects, engineering contracting, and other scenarios where the foreign exchange market is underdeveloped.
Paul Chan said that Hong Kong will continue to promote the tokenization path of financial assets, gradually introduce token settlement mechanisms in the green bonds, ETFs, metal commodities, and other markets, and establish a bridge between transaction currencies and on-chain assets through stablecoins.
## IV. Fiat-Pegged Mechanism is Open, RMB Stablecoins Need to be Carefully Considered
Regarding the arrangement of pegged currencies, policymakers have made it clear that the Hong Kong regulatory framework is open in design.
On July 30, Arthur Yuen said that applicants can choose to peg to a certain fiat currency or peg to a basket of fiat currencies, and only need to clearly declare it when applying.
Previously, Christopher Hui had also repeatedly talked about the possibility of "RMB stablecoins." He pointed out that the law does not prohibit pegging to the RMB, but if it involves exchange rate management and macroeconomic policies, it needs to be communicated and coordinated with relevant mainland institutions. "Hong Kong has legal space, but if it is to be done, the exchange rate and monetary policy of the entire country must be taken into account."
Paul Chan also pointed out in his Secretary's Blog that allowing the use of different fiat currencies as pegged assets is conducive to attracting more international institutions to choose to issue stablecoins in Hong Kong based on their actual application scenarios.
## V. Cautious Reminders to Investors and the Public
While promoting system construction, many policymakers have also issued calm reminders about market enthusiasm.
Legislative Councilor Duncan Chiu said that Hong Kong has broad space to develop stablecoins and will become a landing experimental field combining finance and the real economy in the future. However, he specifically reminded that retail investors should remain vigilant in the face of emerging asset classes, should not blindly follow the trend, and need to fully understand product risks.
The HKMA has also issued an announcement reminding the public to be wary of unauthorized stablecoin projects or individuals claiming to be "licensed" or "applying for a license," emphasizing that if the public holds unlicensed stablecoins, they must bear the relevant risks themselves.
# How Does the Market View Hong Kong's Stablecoin Regulation?
With the Hong Kong "Stablecoin Ordinance" about to be implemented, the market has launched intensive discussions on issues such as the pace of licensing, scenario paths, and the possibility of RMB anchoring. Voices from securities companies, fund companies, foreign investment banks, and the media are gradually revealing the market's structural expectations and potential impact on this regulatory system.
## I. Licensing Pace and Expectations for the First Batch of Licensed Institutions
On July 30, CITIC Securities released a research report pointing out that the "Summary Note on Licensing Regime for Stablecoin Issuers" will be the most valuable official document for the current application stage. The report expects that the number of the first batch of stablecoin licenses will be "only single digits" and is expected to be implemented before the end of the year at the earliest. The HKMA encourages institutions to contact the regulator before August 31, and the official application deadline is September 30.
The report suggests paying attention to two main lines: one is issuers with a clear possibility of obtaining a license; the other is platform companies that have determined to participate in the construction of stablecoin use scenarios.
Gan Tian, CEO of China Asset Management (Hong Kong), regards the current stage as an inflection point where "basic rules have been set and scenario pilots are waiting to be launched." He revealed that China Asset Management has participated in the Hong Kong stablecoin sandbox test and is exploring the integrated path of payment, subscription, redemption, and asset management. He believes that whoever can take the lead in opening up the closed loop of "compliance + landing + connecting assets" in the future may become the leading force in the stablecoin market.
## II. Regulatory Path and the Idea of "Dual-Track Parallel" for Hong Kong Dollar/RMB
On July 23, Ping An Securities released a report stating that Hong Kong may form a dual-track regulatory pattern of "US dollar stablecoins connecting to the international market + Hong Kong dollar stablecoins connecting to the mainland." On the one hand, it continues to attract US dollar-dominated projects to Hong Kong; on the other hand, it also reserves institutional space for the internationalization of the RMB.
The report pointed out that Hong Kong's definition of stablecoins is not limited to a certain type of fiat currency, and the market share of non-US dollar stablecoins may increase in the future. The current Hong Kong stablecoin regulation has included overseas projects that are "partially anchored to the Hong Kong dollar" in the regulatory scope.
Xiao Feng (Chairman of HashKey Group) said in an interview that Hong Kong's stablecoin license will not be limited to Hong Kong dollar pegs, and the pegged currency and deployment of public chain networks will be determined by the issuer. He mentioned that networks such as Ethereum and Solana can become Hong Kong's stablecoin deployment infrastructure.
## III. Policy Expectations and Financial Function Ideas of CNH Stablecoins
Since June, whether the "offshore RMB stablecoin (CNH Stablecoin)" will be piloted in Hong Kong first has become a hot topic in the market.
Morgan Stanley pointed out that the Hong Kong Stablecoin Ordinance "paved the first legal path" for CNH stablecoins. Supported by an offshore liquidity pool of approximately RMB 1 trillion, CNH stablecoins can verify the feasibility of cross-border settlement without violating mainland capital controls and serve as a supplementary payment channel other than CIPS and SWIFT.
Xing Ziqiang, chief economist of Morgan Stanley China, said that Hong Kong should first promote stablecoins pegged to the US dollar and Hong Kong dollar to establish a foundation of technology and market trust, and then gradually introduce CNH stablecoins to strengthen the RMB's position in the digital payment system.
The Hong Kong Economic Journal wrote that Hong Kong can serve as a "pioneer" to promote the implementation of CNH stablecoins to cope with the competition for international payment discourse power. But the premise is that regulatory requirements such as anti-money laundering and counter-terrorist financing must be properly handled.
The Economic Observer pointed out in a commentary that if CNH stablecoins are piloted in Hong Kong first, it will build an RMB channel independent of the SWIFT system and open a new digital path for the internationalization of the RMB. This exploration may become another institutional leap after the RMB cross-border settlement mechanism in 2009.
Wang Yongli, former vice president of Bank of China, also published an article saying that the United States should actively respond to the strategic development of US dollar stablecoins through legislation. The Hong Kong stablecoin regulatory system is at the forefront and has the realistic conditions to pilot CNH stablecoins first, which can be used primarily for overseas crypto asset trading and clearing.
## IV. Financial Market Impact and Capital Concerns
Guangfa Securities pointed out in a report on June 3 that although the Hong Kong stablecoin bill is still in its early stages, it will bring structural investment opportunities in the short term, mainly concentrated in digital currencies, cross-border payments, blockchain, RWA, and other sectors. The report believes that if the policy clearly supports RMB-pegged stablecoins, some related A-share companies will benefit from the compliance value release of the "Hong Kong Bridge Channel."
However, Guangfa Securities also pointed out that due to the current strict domestic virtual asset supervision, the probability of large-scale incremental funds entering the market is still low.
Ping An Securities further added that with the gradual formation of global stablecoin supervision, it is expected to promote the establishment of a unified international regulatory framework in the future. China needs to seize the institutional window period, explore controllable paths through Hong Kong, and avoid being fully monopolized by US dollar stablecoins in the digital asset field.
CCTV's "Yuyuan Tantian" and "Securities Times" and other media have also published comments, believing that the United States is promoting the digitalization of the US dollar through stablecoins, which is a new form of financial expansion. If China has a long-term blank in the stablecoin layout, it may passively respond to the new settlement network dominated by the US dollar.
# Who is Preparing to Apply for a Hong Kong Stablecoin License?
With the "Stablecoin Ordinance" set to take effect on August 1, 2025, many companies are accelerating their entry and preparing or announcing their application for a stablecoin issuer license. These participants come from different industry backgrounds, including financial institutions, technology platforms, payment companies, and blockchain startups, reflecting the diverse responses stimulated by the implementation of the Hong Kong stablecoin regulatory system.
## I. Overall Market Entry Enthusiasm
According to a report on July 14, **50 to 60** companies are interested in applying for a Hong Kong stablecoin license.
* About half of them are payment institutions, and the other half are well-known Internet companies;
* Most have Chinese capital background;
* It is expected that only **3–4** licenses will be issued in the first stage, and the initial stablecoins will mainly be pegged to the Hong Kong dollar and the US dollar.
## II. Sandbox Pilot Institution List (Announced on July 18, 2024)
The following 5 institutions participated in the stablecoin issuer sandbox test:
1. Jingdong Coin Chain Technology (Hong Kong) Co., Ltd.
2. Yuan Coin Innovation Technology Co., Ltd.
3. Standard Chartered Bank (Hong Kong) Limited
4. Anni Group Co., Ltd.
5. Hong Kong Telecommunications (HKT) Limited
## III. Companies that have Clearly Stated that they will Apply or are Applying for a License
* **China SanSan Media**
Announced on July 15 that it intends to apply for a Hong Kong stablecoin license, and the funds will come from share placement and cash reserves.
* **Tiansheng Capital**
Announced on July 11 that it plans to establish a digital asset trading and settlement company and apply for a stablecoin license. It plans to use stablecoins for art trading and settlement services, focusing on cross-border trade settlement.
* **DianDian Digital**
Announced on July 3 that it is preparing to apply for a Hong Kong stablecoin license.
* **Animoca Brands + Standard Chartered Bank (Hong Kong) + Hong Kong Telecommunications**
Has repeatedly stated publicly that it will jointly establish a joint venture to apply for a license and issue a Hong Kong dollar stablecoin. The stablecoin will be used for game virtual asset transactions, cross-border trade, and financial settlement scenarios.
* **JD.com**
Has publicly released official website information stating that it will issue a stablecoin pegged 1:1 to the Hong Kong dollar in Hong Kong. The issuer is Jingdong Coin Chain Technology (Hong Kong), and it was also selected as a "sandbox" participant in the HKMA stablecoin program.
* **Ant International**
According to people familiar with the matter reported in June, the company will immediately apply for an issuer license after the Hong Kong "Stablecoin Ordinance" takes effect, and also plans to seek permission in Singapore and Luxembourg.
* **LianLian Digital**
According to people familiar with the matter, LianLian Digital is actively exploring applying for stablecoin licenses in Hong Kong and Singapore. Its subsidiary DFX Labs already holds a virtual asset trading platform license issued by the Hong Kong Securities and Futures Commission.
## IV. Companies that are Researching, Paying Attention to, or Laying out Related Businesses
* **Ping An of China**
Responded on the interactive platform on July 21 that it has noticed the changes in Hong Kong's stablecoin supervision, is paying close attention and actively researching.
* **Sanwei Xin'an**
Said on June 30 that the company has participated in related businesses such as virtual currencies and stablecoins in Hong Kong, and as a password infrastructure provider, it will provide security for related projects.
## V. Clarification Items
* **Octopus Company**
Was once rumored to be involved in a stablecoin accelerator project. The company subsequently clarified that it only participated in an exploratory program led by Brinc as a "consultant," which was a conceptual study and not a stablecoin product development or formal cooperation.
[Odaily]
This policy has been in the works for a long time. Over the past year, the HKMA has promoted sandbox testing for stablecoin application scenarios and gradually clarified regulatory requirements and application paths. Now, participating institutions will move from testing to issuing and circulating coins under a formal regulatory system.
According to incomplete statistics, dozens of institutions have expressed their intention to apply for stablecoin licenses. At the same time, more local banks, technology companies, and Web3 teams are making further preparations around clearing systems, custody mechanisms, and payment interfaces.
This article will continue to track the latest news related to Hong Kong stablecoins for practitioners to consult.
# Hong Kong Stablecoin Regulatory Progress
## I. Regulatory System Officially Takes Effect
The "Stablecoin Ordinance" will officially take effect on **August 1, 2025**.
The HKMA will simultaneously gazette four related documents (available in English only):
* Consultation Conclusions and Formal Guidelines on the "Licensing and Supervision of Licensed Stablecoin Issuers"
* Consultation Conclusions and Formal Guidelines on the "Guideline on Anti-Money Laundering and Counter-Terrorist Financing (Applicable to Licensed Stablecoin Issuers)"
* "Summary Note on Licensing Regime for Stablecoin Issuers"
* "Summary Note on Transitional Arrangements for Existing Stablecoin Issuers"
## II. Licensing Process and Requirements
The HKMA will accept the first round of stablecoin issuer license applications from **August 1, 2025, to September 30, 2025**.
Institutions intending to apply are encouraged to proactively contact the HKMA via the official email address before **August 31** to communicate regulatory expectations and feedback.
The HKMA reminds market participants: public communication needs to be cautious, and it is illegal to falsely claim to have obtained a license or be applying for one.
## III. Application Conditions and Compliance Requirements
The identity of all Hong Kong compliant stablecoin holders must be verified, **equivalent to real-name registration**.
**Raymond Chan**, Assistant President (Regulation and Anti-Money Laundering) of the HKMA, said that this regulation is stricter than the previous "whitelist" system; it may be relaxed in the future as technology matures.
Legislative Councilor **Duncan Chiu** added: The HKMA will indeed implement KYC, and real-name registration is one possible method. The specific plan will be proposed by the issuer and confirmed after review by the HKMA.
## IV. HKMA's Attitude Towards Fiat-Pegged Coins
**Arthur Yuen**, Deputy Chief Executive of the HKMA, stated:
* Applications can be made for stablecoin licenses pegged to a single fiat currency.
* Applications can also be made for stablecoin licenses pegged to a basket of fiat currencies.
* However, the currency must be clearly stated when applying.
Arthur Yuen also emphasized: **The licensing threshold is very high**, and the first license is expected to be issued at the **beginning of next year**.
## V. Transitional Arrangements and Categorized Handling
After the implementation of the "Stablecoin Ordinance," there will be a **6-month transition period**, and the HKMA will handle existing issuers in categories:
* **Those who meet regulatory requirements**: can obtain a temporary license;
* **Those who fail to meet the standards within 3 months**: must end their business within 4 months;
* **Those who do not meet the standards**: must terminate operations within 1 month after receiving the notice.
Requirements include: full reserves, processing redemptions within 1 day, establishing an entity in Hong Kong, maintaining financial resources, KYC, and transaction monitoring.
Violators will face penalties such as fines, suspension, or revocation of licenses.
# Latest Statements on Stablecoins from Hong Kong Policymakers
With the "Stablecoin Ordinance" set to officially take effect on August 1, 2025, the Hong Kong government and related institutions have intensively released policy signals for stablecoins on various occasions. These statements cover not only regulatory logic and licensing mechanisms but also key issues such as pegged currencies, application scenarios, and risk management, gradually outlining the actual operational profile of the Hong Kong stablecoin regulatory system.
## I. Stablecoins are Not Speculative Tools, but Financial Infrastructure
In all public statements, one repeatedly emphasized position is: **Stablecoins should not become tools for market speculation.**
On July 20, Hong Kong Financial Development Council Chairman Hong Pi-zheng pointed out at the annual report release that stablecoins should play their "stable" role, and the digitalization of asset markets is a long-term battle that cannot be viewed with short-sightedness. He also said that different assets will be "tokenized" in the future, but this process will not be completed in 24 hours, nor should it be expected to make the entire financial system "fully on-chain" in the short term.
Christopher Hui, Secretary for Financial Services and the Treasury, has repeatedly reiterated similar views in the past few months. He believes that stablecoins should be regarded as financial development tools to improve financial efficiency, rather than means of making money. On June 29, he said that the government will adhere to a clear regulatory concept and require issuers to have capital, reserve mechanisms, and redemption capabilities to prevent systemic risks and protect monetary sovereignty.
Financial Secretary Paul Chan also pointed out in several signed articles that stablecoins have programmable characteristics and can be used for payment automation and financial service process restructuring, but their development should not deviate from the focus on the needs of the real economy. He emphasized: "It is not simply the pursuit of technology, let alone a carnival of tools."
Voices from central think tanks have also pointed out the macroeconomic background of stablecoins. On June 21, Li Yang, Chairman of the National Institution for Finance and Development, said that stablecoins are essentially an on-chain extension of the US dollar and a tool for the United States to promote the digitalization of US dollar hegemony. China should take advantage of the situation to promote the internationalization of the RMB and consider developing a complementary mechanism between RMB stablecoins and central bank digital currencies.
## II. Licensing System Tightens, Application Thresholds are High
Hong Kong's stablecoin regulatory system will adopt a high-standard review mechanism. On July 30, Arthur Yuen, Deputy Chief Executive of the HKMA, clearly stated at a technical briefing that the licensing threshold is "very high," and a large number of licenses will not be issued at once in the first stage, but will be evaluated one by one based on the quality of the application materials. The first license is expected to be issued at the beginning of next year.
HKMA President Eddie Yue previously wrote that the compliance requirements faced by stablecoin issuers are almost equivalent to those of financial institutions such as e-wallets and banks, and consistent supervision will be adopted in terms of asset reserve management, redemption policies, and anti-money laundering mechanisms. Only a "small number of licenses" will be issued in the initial stage, and the issuer's business plan, actual scenarios, reserve capacity, and technical security will be重点评估.
Christopher Hui has repeatedly pointed out that issuers must "complete within one day" after the user initiates redemption, and at the same time establish a stable mechanism and customer asset isolation mechanism to fully implement anti-money laundering and counter-terrorist financing regulations.
## III. Application Scenarios Prioritize Cross-border Settlement, Followed by Web3
Compared with emphasizing the narrative of "on-chain" or "DeFi-ization," policymakers have always positioned stablecoins with **cross-border payments and clearing systems** as the main axis.
Eddie Yue said that the first batch of stablecoins will mainly focus on cross-border trade settlement and Web3 scenario testing. He also emphasized that sandbox participation is not a prerequisite for licensing, and even if institutions have entered the testing scope, it does not mean that they will necessarily obtain a formal license in the future.
Christopher Hui mentioned in an interview that stablecoins can be used as an alternative payment method for local currency fluctuations in the "Belt and Road" region, especially suitable for infrastructure projects, engineering contracting, and other scenarios where the foreign exchange market is underdeveloped.
Paul Chan said that Hong Kong will continue to promote the tokenization path of financial assets, gradually introduce token settlement mechanisms in the green bonds, ETFs, metal commodities, and other markets, and establish a bridge between transaction currencies and on-chain assets through stablecoins.
## IV. Fiat-Pegged Mechanism is Open, RMB Stablecoins Need to be Carefully Considered
Regarding the arrangement of pegged currencies, policymakers have made it clear that the Hong Kong regulatory framework is open in design.
On July 30, Arthur Yuen said that applicants can choose to peg to a certain fiat currency or peg to a basket of fiat currencies, and only need to clearly declare it when applying.
Previously, Christopher Hui had also repeatedly talked about the possibility of "RMB stablecoins." He pointed out that the law does not prohibit pegging to the RMB, but if it involves exchange rate management and macroeconomic policies, it needs to be communicated and coordinated with relevant mainland institutions. "Hong Kong has legal space, but if it is to be done, the exchange rate and monetary policy of the entire country must be taken into account."
Paul Chan also pointed out in his Secretary's Blog that allowing the use of different fiat currencies as pegged assets is conducive to attracting more international institutions to choose to issue stablecoins in Hong Kong based on their actual application scenarios.
## V. Cautious Reminders to Investors and the Public
While promoting system construction, many policymakers have also issued calm reminders about market enthusiasm.
Legislative Councilor Duncan Chiu said that Hong Kong has broad space to develop stablecoins and will become a landing experimental field combining finance and the real economy in the future. However, he specifically reminded that retail investors should remain vigilant in the face of emerging asset classes, should not blindly follow the trend, and need to fully understand product risks.
The HKMA has also issued an announcement reminding the public to be wary of unauthorized stablecoin projects or individuals claiming to be "licensed" or "applying for a license," emphasizing that if the public holds unlicensed stablecoins, they must bear the relevant risks themselves.
# How Does the Market View Hong Kong's Stablecoin Regulation?
With the Hong Kong "Stablecoin Ordinance" about to be implemented, the market has launched intensive discussions on issues such as the pace of licensing, scenario paths, and the possibility of RMB anchoring. Voices from securities companies, fund companies, foreign investment banks, and the media are gradually revealing the market's structural expectations and potential impact on this regulatory system.
## I. Licensing Pace and Expectations for the First Batch of Licensed Institutions
On July 30, CITIC Securities released a research report pointing out that the "Summary Note on Licensing Regime for Stablecoin Issuers" will be the most valuable official document for the current application stage. The report expects that the number of the first batch of stablecoin licenses will be "only single digits" and is expected to be implemented before the end of the year at the earliest. The HKMA encourages institutions to contact the regulator before August 31, and the official application deadline is September 30.
The report suggests paying attention to two main lines: one is issuers with a clear possibility of obtaining a license; the other is platform companies that have determined to participate in the construction of stablecoin use scenarios.
Gan Tian, CEO of China Asset Management (Hong Kong), regards the current stage as an inflection point where "basic rules have been set and scenario pilots are waiting to be launched." He revealed that China Asset Management has participated in the Hong Kong stablecoin sandbox test and is exploring the integrated path of payment, subscription, redemption, and asset management. He believes that whoever can take the lead in opening up the closed loop of "compliance + landing + connecting assets" in the future may become the leading force in the stablecoin market.
## II. Regulatory Path and the Idea of "Dual-Track Parallel" for Hong Kong Dollar/RMB
On July 23, Ping An Securities released a report stating that Hong Kong may form a dual-track regulatory pattern of "US dollar stablecoins connecting to the international market + Hong Kong dollar stablecoins connecting to the mainland." On the one hand, it continues to attract US dollar-dominated projects to Hong Kong; on the other hand, it also reserves institutional space for the internationalization of the RMB.
The report pointed out that Hong Kong's definition of stablecoins is not limited to a certain type of fiat currency, and the market share of non-US dollar stablecoins may increase in the future. The current Hong Kong stablecoin regulation has included overseas projects that are "partially anchored to the Hong Kong dollar" in the regulatory scope.
Xiao Feng (Chairman of HashKey Group) said in an interview that Hong Kong's stablecoin license will not be limited to Hong Kong dollar pegs, and the pegged currency and deployment of public chain networks will be determined by the issuer. He mentioned that networks such as Ethereum and Solana can become Hong Kong's stablecoin deployment infrastructure.
## III. Policy Expectations and Financial Function Ideas of CNH Stablecoins
Since June, whether the "offshore RMB stablecoin (CNH Stablecoin)" will be piloted in Hong Kong first has become a hot topic in the market.
Morgan Stanley pointed out that the Hong Kong Stablecoin Ordinance "paved the first legal path" for CNH stablecoins. Supported by an offshore liquidity pool of approximately RMB 1 trillion, CNH stablecoins can verify the feasibility of cross-border settlement without violating mainland capital controls and serve as a supplementary payment channel other than CIPS and SWIFT.
Xing Ziqiang, chief economist of Morgan Stanley China, said that Hong Kong should first promote stablecoins pegged to the US dollar and Hong Kong dollar to establish a foundation of technology and market trust, and then gradually introduce CNH stablecoins to strengthen the RMB's position in the digital payment system.
The Hong Kong Economic Journal wrote that Hong Kong can serve as a "pioneer" to promote the implementation of CNH stablecoins to cope with the competition for international payment discourse power. But the premise is that regulatory requirements such as anti-money laundering and counter-terrorist financing must be properly handled.
The Economic Observer pointed out in a commentary that if CNH stablecoins are piloted in Hong Kong first, it will build an RMB channel independent of the SWIFT system and open a new digital path for the internationalization of the RMB. This exploration may become another institutional leap after the RMB cross-border settlement mechanism in 2009.
Wang Yongli, former vice president of Bank of China, also published an article saying that the United States should actively respond to the strategic development of US dollar stablecoins through legislation. The Hong Kong stablecoin regulatory system is at the forefront and has the realistic conditions to pilot CNH stablecoins first, which can be used primarily for overseas crypto asset trading and clearing.
## IV. Financial Market Impact and Capital Concerns
Guangfa Securities pointed out in a report on June 3 that although the Hong Kong stablecoin bill is still in its early stages, it will bring structural investment opportunities in the short term, mainly concentrated in digital currencies, cross-border payments, blockchain, RWA, and other sectors. The report believes that if the policy clearly supports RMB-pegged stablecoins, some related A-share companies will benefit from the compliance value release of the "Hong Kong Bridge Channel."
However, Guangfa Securities also pointed out that due to the current strict domestic virtual asset supervision, the probability of large-scale incremental funds entering the market is still low.
Ping An Securities further added that with the gradual formation of global stablecoin supervision, it is expected to promote the establishment of a unified international regulatory framework in the future. China needs to seize the institutional window period, explore controllable paths through Hong Kong, and avoid being fully monopolized by US dollar stablecoins in the digital asset field.
CCTV's "Yuyuan Tantian" and "Securities Times" and other media have also published comments, believing that the United States is promoting the digitalization of the US dollar through stablecoins, which is a new form of financial expansion. If China has a long-term blank in the stablecoin layout, it may passively respond to the new settlement network dominated by the US dollar.
# Who is Preparing to Apply for a Hong Kong Stablecoin License?
With the "Stablecoin Ordinance" set to take effect on August 1, 2025, many companies are accelerating their entry and preparing or announcing their application for a stablecoin issuer license. These participants come from different industry backgrounds, including financial institutions, technology platforms, payment companies, and blockchain startups, reflecting the diverse responses stimulated by the implementation of the Hong Kong stablecoin regulatory system.
## I. Overall Market Entry Enthusiasm
According to a report on July 14, **50 to 60** companies are interested in applying for a Hong Kong stablecoin license.
* About half of them are payment institutions, and the other half are well-known Internet companies;
* Most have Chinese capital background;
* It is expected that only **3–4** licenses will be issued in the first stage, and the initial stablecoins will mainly be pegged to the Hong Kong dollar and the US dollar.
## II. Sandbox Pilot Institution List (Announced on July 18, 2024)
The following 5 institutions participated in the stablecoin issuer sandbox test:
1. Jingdong Coin Chain Technology (Hong Kong) Co., Ltd.
2. Yuan Coin Innovation Technology Co., Ltd.
3. Standard Chartered Bank (Hong Kong) Limited
4. Anni Group Co., Ltd.
5. Hong Kong Telecommunications (HKT) Limited
## III. Companies that have Clearly Stated that they will Apply or are Applying for a License
* **China SanSan Media**
Announced on July 15 that it intends to apply for a Hong Kong stablecoin license, and the funds will come from share placement and cash reserves.
* **Tiansheng Capital**
Announced on July 11 that it plans to establish a digital asset trading and settlement company and apply for a stablecoin license. It plans to use stablecoins for art trading and settlement services, focusing on cross-border trade settlement.
* **DianDian Digital**
Announced on July 3 that it is preparing to apply for a Hong Kong stablecoin license.
* **Animoca Brands + Standard Chartered Bank (Hong Kong) + Hong Kong Telecommunications**
Has repeatedly stated publicly that it will jointly establish a joint venture to apply for a license and issue a Hong Kong dollar stablecoin. The stablecoin will be used for game virtual asset transactions, cross-border trade, and financial settlement scenarios.
* **JD.com**
Has publicly released official website information stating that it will issue a stablecoin pegged 1:1 to the Hong Kong dollar in Hong Kong. The issuer is Jingdong Coin Chain Technology (Hong Kong), and it was also selected as a "sandbox" participant in the HKMA stablecoin program.
* **Ant International**
According to people familiar with the matter reported in June, the company will immediately apply for an issuer license after the Hong Kong "Stablecoin Ordinance" takes effect, and also plans to seek permission in Singapore and Luxembourg.
* **LianLian Digital**
According to people familiar with the matter, LianLian Digital is actively exploring applying for stablecoin licenses in Hong Kong and Singapore. Its subsidiary DFX Labs already holds a virtual asset trading platform license issued by the Hong Kong Securities and Futures Commission.
## IV. Companies that are Researching, Paying Attention to, or Laying out Related Businesses
* **Ping An of China**
Responded on the interactive platform on July 21 that it has noticed the changes in Hong Kong's stablecoin supervision, is paying close attention and actively researching.
* **Sanwei Xin'an**
Said on June 30 that the company has participated in related businesses such as virtual currencies and stablecoins in Hong Kong, and as a password infrastructure provider, it will provide security for related projects.
## V. Clarification Items
* **Octopus Company**
Was once rumored to be involved in a stablecoin accelerator project. The company subsequently clarified that it only participated in an exploratory program led by Brinc as a "consultant," which was a conceptual study and not a stablecoin product development or formal cooperation.
[Odaily]
All You Need to Know in 10s
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Here's What You Need to Know About Hong Kong's Stablecoin Policy Launch
BlockBeatsJul 30, 2025
As of August 1, 2025, the Hong Kong Monetary Authority (HKMA) will open applications for stablecoin issuance licenses, marking a new stage in the formal implementation of stablecoin development in Hong Kong.
This policy has been in the works for a long time. Over the past year, the HKMA has promoted sandbox testing for stablecoin application scenarios and gradually clarified regulatory requirements and application paths. Now, participating institutions will move from testing to issuing and circulating coins under a formal regulatory system.
According to incomplete statistics, dozens of institutions have expressed their intention to apply for stablecoin licenses. At the same time, more local banks, technology companies, and Web3 teams are making further preparations around clearing systems, custody mechanisms, and payment interfaces.
This article will continue to track the latest news related to Hong Kong stablecoins for practitioners to consult.
# Hong Kong Stablecoin Regulatory Progress
## I. Regulatory System Officially Takes Effect
The "Stablecoin Ordinance" will officially take effect on **August 1, 2025**.
The HKMA will simultaneously gazette four related documents (available in English only):
* Consultation Conclusions and Formal Guidelines on the "Licensing and Supervision of Licensed Stablecoin Issuers"
* Consultation Conclusions and Formal Guidelines on the "Guideline on Anti-Money Laundering and Counter-Terrorist Financing (Applicable to Licensed Stablecoin Issuers)"
* "Summary Note on Licensing Regime for Stablecoin Issuers"
* "Summary Note on Transitional Arrangements for Existing Stablecoin Issuers"
## II. Licensing Process and Requirements
The HKMA will accept the first round of stablecoin issuer license applications from **August 1, 2025, to September 30, 2025**.
Institutions intending to apply are encouraged to proactively contact the HKMA via the official email address before **August 31** to communicate regulatory expectations and feedback.
The HKMA reminds market participants: public communication needs to be cautious, and it is illegal to falsely claim to have obtained a license or be applying for one.
## III. Application Conditions and Compliance Requirements
The identity of all Hong Kong compliant stablecoin holders must be verified, **equivalent to real-name registration**.
**Raymond Chan**, Assistant President (Regulation and Anti-Money Laundering) of the HKMA, said that this regulation is stricter than the previous "whitelist" system; it may be relaxed in the future as technology matures.
Legislative Councilor **Duncan Chiu** added: The HKMA will indeed implement KYC, and real-name registration is one possible method. The specific plan will be proposed by the issuer and confirmed after review by the HKMA.
## IV. HKMA's Attitude Towards Fiat-Pegged Coins
**Arthur Yuen**, Deputy Chief Executive of the HKMA, stated:
* Applications can be made for stablecoin licenses pegged to a single fiat currency.
* Applications can also be made for stablecoin licenses pegged to a basket of fiat currencies.
* However, the currency must be clearly stated when applying.
Arthur Yuen also emphasized: **The licensing threshold is very high**, and the first license is expected to be issued at the **beginning of next year**.
## V. Transitional Arrangements and Categorized Handling
After the implementation of the "Stablecoin Ordinance," there will be a **6-month transition period**, and the HKMA will handle existing issuers in categories:
* **Those who meet regulatory requirements**: can obtain a temporary license;
* **Those who fail to meet the standards within 3 months**: must end their business within 4 months;
* **Those who do not meet the standards**: must terminate operations within 1 month after receiving the notice.
Requirements include: full reserves, processing redemptions within 1 day, establishing an entity in Hong Kong, maintaining financial resources, KYC, and transaction monitoring.
Violators will face penalties such as fines, suspension, or revocation of licenses.
# Latest Statements on Stablecoins from Hong Kong Policymakers
With the "Stablecoin Ordinance" set to officially take effect on August 1, 2025, the Hong Kong government and related institutions have intensively released policy signals for stablecoins on various occasions. These statements cover not only regulatory logic and licensing mechanisms but also key issues such as pegged currencies, application scenarios, and risk management, gradually outlining the actual operational profile of the Hong Kong stablecoin regulatory system.
## I. Stablecoins are Not Speculative Tools, but Financial Infrastructure
In all public statements, one repeatedly emphasized position is: **Stablecoins should not become tools for market speculation.**
On July 20, Hong Kong Financial Development Council Chairman Hong Pi-zheng pointed out at the annual report release that stablecoins should play their "stable" role, and the digitalization of asset markets is a long-term battle that cannot be viewed with short-sightedness. He also said that different assets will be "tokenized" in the future, but this process will not be completed in 24 hours, nor should it be expected to make the entire financial system "fully on-chain" in the short term.
Christopher Hui, Secretary for Financial Services and the Treasury, has repeatedly reiterated similar views in the past few months. He believes that stablecoins should be regarded as financial development tools to improve financial efficiency, rather than means of making money. On June 29, he said that the government will adhere to a clear regulatory concept and require issuers to have capital, reserve mechanisms, and redemption capabilities to prevent systemic risks and protect monetary sovereignty.
Financial Secretary Paul Chan also pointed out in several signed articles that stablecoins have programmable characteristics and can be used for payment automation and financial service process restructuring, but their development should not deviate from the focus on the needs of the real economy. He emphasized: "It is not simply the pursuit of technology, let alone a carnival of tools."
Voices from central think tanks have also pointed out the macroeconomic background of stablecoins. On June 21, Li Yang, Chairman of the National Institution for Finance and Development, said that stablecoins are essentially an on-chain extension of the US dollar and a tool for the United States to promote the digitalization of US dollar hegemony. China should take advantage of the situation to promote the internationalization of the RMB and consider developing a complementary mechanism between RMB stablecoins and central bank digital currencies.
## II. Licensing System Tightens, Application Thresholds are High
Hong Kong's stablecoin regulatory system will adopt a high-standard review mechanism. On July 30, Arthur Yuen, Deputy Chief Executive of the HKMA, clearly stated at a technical briefing that the licensing threshold is "very high," and a large number of licenses will not be issued at once in the first stage, but will be evaluated one by one based on the quality of the application materials. The first license is expected to be issued at the beginning of next year.
HKMA President Eddie Yue previously wrote that the compliance requirements faced by stablecoin issuers are almost equivalent to those of financial institutions such as e-wallets and banks, and consistent supervision will be adopted in terms of asset reserve management, redemption policies, and anti-money laundering mechanisms. Only a "small number of licenses" will be issued in the initial stage, and the issuer's business plan, actual scenarios, reserve capacity, and technical security will be重点评估.
Christopher Hui has repeatedly pointed out that issuers must "complete within one day" after the user initiates redemption, and at the same time establish a stable mechanism and customer asset isolation mechanism to fully implement anti-money laundering and counter-terrorist financing regulations.
## III. Application Scenarios Prioritize Cross-border Settlement, Followed by Web3
Compared with emphasizing the narrative of "on-chain" or "DeFi-ization," policymakers have always positioned stablecoins with **cross-border payments and clearing systems** as the main axis.
Eddie Yue said that the first batch of stablecoins will mainly focus on cross-border trade settlement and Web3 scenario testing. He also emphasized that sandbox participation is not a prerequisite for licensing, and even if institutions have entered the testing scope, it does not mean that they will necessarily obtain a formal license in the future.
Christopher Hui mentioned in an interview that stablecoins can be used as an alternative payment method for local currency fluctuations in the "Belt and Road" region, especially suitable for infrastructure projects, engineering contracting, and other scenarios where the foreign exchange market is underdeveloped.
Paul Chan said that Hong Kong will continue to promote the tokenization path of financial assets, gradually introduce token settlement mechanisms in the green bonds, ETFs, metal commodities, and other markets, and establish a bridge between transaction currencies and on-chain assets through stablecoins.
## IV. Fiat-Pegged Mechanism is Open, RMB Stablecoins Need to be Carefully Considered
Regarding the arrangement of pegged currencies, policymakers have made it clear that the Hong Kong regulatory framework is open in design.
On July 30, Arthur Yuen said that applicants can choose to peg to a certain fiat currency or peg to a basket of fiat currencies, and only need to clearly declare it when applying.
Previously, Christopher Hui had also repeatedly talked about the possibility of "RMB stablecoins." He pointed out that the law does not prohibit pegging to the RMB, but if it involves exchange rate management and macroeconomic policies, it needs to be communicated and coordinated with relevant mainland institutions. "Hong Kong has legal space, but if it is to be done, the exchange rate and monetary policy of the entire country must be taken into account."
Paul Chan also pointed out in his Secretary's Blog that allowing the use of different fiat currencies as pegged assets is conducive to attracting more international institutions to choose to issue stablecoins in Hong Kong based on their actual application scenarios.
## V. Cautious Reminders to Investors and the Public
While promoting system construction, many policymakers have also issued calm reminders about market enthusiasm.
Legislative Councilor Duncan Chiu said that Hong Kong has broad space to develop stablecoins and will become a landing experimental field combining finance and the real economy in the future. However, he specifically reminded that retail investors should remain vigilant in the face of emerging asset classes, should not blindly follow the trend, and need to fully understand product risks.
The HKMA has also issued an announcement reminding the public to be wary of unauthorized stablecoin projects or individuals claiming to be "licensed" or "applying for a license," emphasizing that if the public holds unlicensed stablecoins, they must bear the relevant risks themselves.
# How Does the Market View Hong Kong's Stablecoin Regulation?
With the Hong Kong "Stablecoin Ordinance" about to be implemented, the market has launched intensive discussions on issues such as the pace of licensing, scenario paths, and the possibility of RMB anchoring. Voices from securities companies, fund companies, foreign investment banks, and the media are gradually revealing the market's structural expectations and potential impact on this regulatory system.
## I. Licensing Pace and Expectations for the First Batch of Licensed Institutions
On July 30, CITIC Securities released a research report pointing out that the "Summary Note on Licensing Regime for Stablecoin Issuers" will be the most valuable official document for the current application stage. The report expects that the number of the first batch of stablecoin licenses will be "only single digits" and is expected to be implemented before the end of the year at the earliest. The HKMA encourages institutions to contact the regulator before August 31, and the official application deadline is September 30.
The report suggests paying attention to two main lines: one is issuers with a clear possibility of obtaining a license; the other is platform companies that have determined to participate in the construction of stablecoin use scenarios.
Gan Tian, CEO of China Asset Management (Hong Kong), regards the current stage as an inflection point where "basic rules have been set and scenario pilots are waiting to be launched." He revealed that China Asset Management has participated in the Hong Kong stablecoin sandbox test and is exploring the integrated path of payment, subscription, redemption, and asset management. He believes that whoever can take the lead in opening up the closed loop of "compliance + landing + connecting assets" in the future may become the leading force in the stablecoin market.
## II. Regulatory Path and the Idea of "Dual-Track Parallel" for Hong Kong Dollar/RMB
On July 23, Ping An Securities released a report stating that Hong Kong may form a dual-track regulatory pattern of "US dollar stablecoins connecting to the international market + Hong Kong dollar stablecoins connecting to the mainland." On the one hand, it continues to attract US dollar-dominated projects to Hong Kong; on the other hand, it also reserves institutional space for the internationalization of the RMB.
The report pointed out that Hong Kong's definition of stablecoins is not limited to a certain type of fiat currency, and the market share of non-US dollar stablecoins may increase in the future. The current Hong Kong stablecoin regulation has included overseas projects that are "partially anchored to the Hong Kong dollar" in the regulatory scope.
Xiao Feng (Chairman of HashKey Group) said in an interview that Hong Kong's stablecoin license will not be limited to Hong Kong dollar pegs, and the pegged currency and deployment of public chain networks will be determined by the issuer. He mentioned that networks such as Ethereum and Solana can become Hong Kong's stablecoin deployment infrastructure.
## III. Policy Expectations and Financial Function Ideas of CNH Stablecoins
Since June, whether the "offshore RMB stablecoin (CNH Stablecoin)" will be piloted in Hong Kong first has become a hot topic in the market.
Morgan Stanley pointed out that the Hong Kong Stablecoin Ordinance "paved the first legal path" for CNH stablecoins. Supported by an offshore liquidity pool of approximately RMB 1 trillion, CNH stablecoins can verify the feasibility of cross-border settlement without violating mainland capital controls and serve as a supplementary payment channel other than CIPS and SWIFT.
Xing Ziqiang, chief economist of Morgan Stanley China, said that Hong Kong should first promote stablecoins pegged to the US dollar and Hong Kong dollar to establish a foundation of technology and market trust, and then gradually introduce CNH stablecoins to strengthen the RMB's position in the digital payment system.
The Hong Kong Economic Journal wrote that Hong Kong can serve as a "pioneer" to promote the implementation of CNH stablecoins to cope with the competition for international payment discourse power. But the premise is that regulatory requirements such as anti-money laundering and counter-terrorist financing must be properly handled.
The Economic Observer pointed out in a commentary that if CNH stablecoins are piloted in Hong Kong first, it will build an RMB channel independent of the SWIFT system and open a new digital path for the internationalization of the RMB. This exploration may become another institutional leap after the RMB cross-border settlement mechanism in 2009.
Wang Yongli, former vice president of Bank of China, also published an article saying that the United States should actively respond to the strategic development of US dollar stablecoins through legislation. The Hong Kong stablecoin regulatory system is at the forefront and has the realistic conditions to pilot CNH stablecoins first, which can be used primarily for overseas crypto asset trading and clearing.
## IV. Financial Market Impact and Capital Concerns
Guangfa Securities pointed out in a report on June 3 that although the Hong Kong stablecoin bill is still in its early stages, it will bring structural investment opportunities in the short term, mainly concentrated in digital currencies, cross-border payments, blockchain, RWA, and other sectors. The report believes that if the policy clearly supports RMB-pegged stablecoins, some related A-share companies will benefit from the compliance value release of the "Hong Kong Bridge Channel."
However, Guangfa Securities also pointed out that due to the current strict domestic virtual asset supervision, the probability of large-scale incremental funds entering the market is still low.
Ping An Securities further added that with the gradual formation of global stablecoin supervision, it is expected to promote the establishment of a unified international regulatory framework in the future. China needs to seize the institutional window period, explore controllable paths through Hong Kong, and avoid being fully monopolized by US dollar stablecoins in the digital asset field.
CCTV's "Yuyuan Tantian" and "Securities Times" and other media have also published comments, believing that the United States is promoting the digitalization of the US dollar through stablecoins, which is a new form of financial expansion. If China has a long-term blank in the stablecoin layout, it may passively respond to the new settlement network dominated by the US dollar.
# Who is Preparing to Apply for a Hong Kong Stablecoin License?
With the "Stablecoin Ordinance" set to take effect on August 1, 2025, many companies are accelerating their entry and preparing or announcing their application for a stablecoin issuer license. These participants come from different industry backgrounds, including financial institutions, technology platforms, payment companies, and blockchain startups, reflecting the diverse responses stimulated by the implementation of the Hong Kong stablecoin regulatory system.
## I. Overall Market Entry Enthusiasm
According to a report on July 14, **50 to 60** companies are interested in applying for a Hong Kong stablecoin license.
* About half of them are payment institutions, and the other half are well-known Internet companies;
* Most have Chinese capital background;
* It is expected that only **3–4** licenses will be issued in the first stage, and the initial stablecoins will mainly be pegged to the Hong Kong dollar and the US dollar.
## II. Sandbox Pilot Institution List (Announced on July 18, 2024)
The following 5 institutions participated in the stablecoin issuer sandbox test:
1. Jingdong Coin Chain Technology (Hong Kong) Co., Ltd.
2. Yuan Coin Innovation Technology Co., Ltd.
3. Standard Chartered Bank (Hong Kong) Limited
4. Anni Group Co., Ltd.
5. Hong Kong Telecommunications (HKT) Limited
## III. Companies that have Clearly Stated that they will Apply or are Applying for a License
* **China SanSan Media**
Announced on July 15 that it intends to apply for a Hong Kong stablecoin license, and the funds will come from share placement and cash reserves.
* **Tiansheng Capital**
Announced on July 11 that it plans to establish a digital asset trading and settlement company and apply for a stablecoin license. It plans to use stablecoins for art trading and settlement services, focusing on cross-border trade settlement.
* **DianDian Digital**
Announced on July 3 that it is preparing to apply for a Hong Kong stablecoin license.
* **Animoca Brands + Standard Chartered Bank (Hong Kong) + Hong Kong Telecommunications**
Has repeatedly stated publicly that it will jointly establish a joint venture to apply for a license and issue a Hong Kong dollar stablecoin. The stablecoin will be used for game virtual asset transactions, cross-border trade, and financial settlement scenarios.
* **JD.com**
Has publicly released official website information stating that it will issue a stablecoin pegged 1:1 to the Hong Kong dollar in Hong Kong. The issuer is Jingdong Coin Chain Technology (Hong Kong), and it was also selected as a "sandbox" participant in the HKMA stablecoin program.
* **Ant International**
According to people familiar with the matter reported in June, the company will immediately apply for an issuer license after the Hong Kong "Stablecoin Ordinance" takes effect, and also plans to seek permission in Singapore and Luxembourg.
* **LianLian Digital**
According to people familiar with the matter, LianLian Digital is actively exploring applying for stablecoin licenses in Hong Kong and Singapore. Its subsidiary DFX Labs already holds a virtual asset trading platform license issued by the Hong Kong Securities and Futures Commission.
## IV. Companies that are Researching, Paying Attention to, or Laying out Related Businesses
* **Ping An of China**
Responded on the interactive platform on July 21 that it has noticed the changes in Hong Kong's stablecoin supervision, is paying close attention and actively researching.
* **Sanwei Xin'an**
Said on June 30 that the company has participated in related businesses such as virtual currencies and stablecoins in Hong Kong, and as a password infrastructure provider, it will provide security for related projects.
## V. Clarification Items
* **Octopus Company**
Was once rumored to be involved in a stablecoin accelerator project. The company subsequently clarified that it only participated in an exploratory program led by Brinc as a "consultant," which was a conceptual study and not a stablecoin product development or formal cooperation.
[Odaily]
This policy has been in the works for a long time. Over the past year, the HKMA has promoted sandbox testing for stablecoin application scenarios and gradually clarified regulatory requirements and application paths. Now, participating institutions will move from testing to issuing and circulating coins under a formal regulatory system.
According to incomplete statistics, dozens of institutions have expressed their intention to apply for stablecoin licenses. At the same time, more local banks, technology companies, and Web3 teams are making further preparations around clearing systems, custody mechanisms, and payment interfaces.
This article will continue to track the latest news related to Hong Kong stablecoins for practitioners to consult.
# Hong Kong Stablecoin Regulatory Progress
## I. Regulatory System Officially Takes Effect
The "Stablecoin Ordinance" will officially take effect on **August 1, 2025**.
The HKMA will simultaneously gazette four related documents (available in English only):
* Consultation Conclusions and Formal Guidelines on the "Licensing and Supervision of Licensed Stablecoin Issuers"
* Consultation Conclusions and Formal Guidelines on the "Guideline on Anti-Money Laundering and Counter-Terrorist Financing (Applicable to Licensed Stablecoin Issuers)"
* "Summary Note on Licensing Regime for Stablecoin Issuers"
* "Summary Note on Transitional Arrangements for Existing Stablecoin Issuers"
## II. Licensing Process and Requirements
The HKMA will accept the first round of stablecoin issuer license applications from **August 1, 2025, to September 30, 2025**.
Institutions intending to apply are encouraged to proactively contact the HKMA via the official email address before **August 31** to communicate regulatory expectations and feedback.
The HKMA reminds market participants: public communication needs to be cautious, and it is illegal to falsely claim to have obtained a license or be applying for one.
## III. Application Conditions and Compliance Requirements
The identity of all Hong Kong compliant stablecoin holders must be verified, **equivalent to real-name registration**.
**Raymond Chan**, Assistant President (Regulation and Anti-Money Laundering) of the HKMA, said that this regulation is stricter than the previous "whitelist" system; it may be relaxed in the future as technology matures.
Legislative Councilor **Duncan Chiu** added: The HKMA will indeed implement KYC, and real-name registration is one possible method. The specific plan will be proposed by the issuer and confirmed after review by the HKMA.
## IV. HKMA's Attitude Towards Fiat-Pegged Coins
**Arthur Yuen**, Deputy Chief Executive of the HKMA, stated:
* Applications can be made for stablecoin licenses pegged to a single fiat currency.
* Applications can also be made for stablecoin licenses pegged to a basket of fiat currencies.
* However, the currency must be clearly stated when applying.
Arthur Yuen also emphasized: **The licensing threshold is very high**, and the first license is expected to be issued at the **beginning of next year**.
## V. Transitional Arrangements and Categorized Handling
After the implementation of the "Stablecoin Ordinance," there will be a **6-month transition period**, and the HKMA will handle existing issuers in categories:
* **Those who meet regulatory requirements**: can obtain a temporary license;
* **Those who fail to meet the standards within 3 months**: must end their business within 4 months;
* **Those who do not meet the standards**: must terminate operations within 1 month after receiving the notice.
Requirements include: full reserves, processing redemptions within 1 day, establishing an entity in Hong Kong, maintaining financial resources, KYC, and transaction monitoring.
Violators will face penalties such as fines, suspension, or revocation of licenses.
# Latest Statements on Stablecoins from Hong Kong Policymakers
With the "Stablecoin Ordinance" set to officially take effect on August 1, 2025, the Hong Kong government and related institutions have intensively released policy signals for stablecoins on various occasions. These statements cover not only regulatory logic and licensing mechanisms but also key issues such as pegged currencies, application scenarios, and risk management, gradually outlining the actual operational profile of the Hong Kong stablecoin regulatory system.
## I. Stablecoins are Not Speculative Tools, but Financial Infrastructure
In all public statements, one repeatedly emphasized position is: **Stablecoins should not become tools for market speculation.**
On July 20, Hong Kong Financial Development Council Chairman Hong Pi-zheng pointed out at the annual report release that stablecoins should play their "stable" role, and the digitalization of asset markets is a long-term battle that cannot be viewed with short-sightedness. He also said that different assets will be "tokenized" in the future, but this process will not be completed in 24 hours, nor should it be expected to make the entire financial system "fully on-chain" in the short term.
Christopher Hui, Secretary for Financial Services and the Treasury, has repeatedly reiterated similar views in the past few months. He believes that stablecoins should be regarded as financial development tools to improve financial efficiency, rather than means of making money. On June 29, he said that the government will adhere to a clear regulatory concept and require issuers to have capital, reserve mechanisms, and redemption capabilities to prevent systemic risks and protect monetary sovereignty.
Financial Secretary Paul Chan also pointed out in several signed articles that stablecoins have programmable characteristics and can be used for payment automation and financial service process restructuring, but their development should not deviate from the focus on the needs of the real economy. He emphasized: "It is not simply the pursuit of technology, let alone a carnival of tools."
Voices from central think tanks have also pointed out the macroeconomic background of stablecoins. On June 21, Li Yang, Chairman of the National Institution for Finance and Development, said that stablecoins are essentially an on-chain extension of the US dollar and a tool for the United States to promote the digitalization of US dollar hegemony. China should take advantage of the situation to promote the internationalization of the RMB and consider developing a complementary mechanism between RMB stablecoins and central bank digital currencies.
## II. Licensing System Tightens, Application Thresholds are High
Hong Kong's stablecoin regulatory system will adopt a high-standard review mechanism. On July 30, Arthur Yuen, Deputy Chief Executive of the HKMA, clearly stated at a technical briefing that the licensing threshold is "very high," and a large number of licenses will not be issued at once in the first stage, but will be evaluated one by one based on the quality of the application materials. The first license is expected to be issued at the beginning of next year.
HKMA President Eddie Yue previously wrote that the compliance requirements faced by stablecoin issuers are almost equivalent to those of financial institutions such as e-wallets and banks, and consistent supervision will be adopted in terms of asset reserve management, redemption policies, and anti-money laundering mechanisms. Only a "small number of licenses" will be issued in the initial stage, and the issuer's business plan, actual scenarios, reserve capacity, and technical security will be重点评估.
Christopher Hui has repeatedly pointed out that issuers must "complete within one day" after the user initiates redemption, and at the same time establish a stable mechanism and customer asset isolation mechanism to fully implement anti-money laundering and counter-terrorist financing regulations.
## III. Application Scenarios Prioritize Cross-border Settlement, Followed by Web3
Compared with emphasizing the narrative of "on-chain" or "DeFi-ization," policymakers have always positioned stablecoins with **cross-border payments and clearing systems** as the main axis.
Eddie Yue said that the first batch of stablecoins will mainly focus on cross-border trade settlement and Web3 scenario testing. He also emphasized that sandbox participation is not a prerequisite for licensing, and even if institutions have entered the testing scope, it does not mean that they will necessarily obtain a formal license in the future.
Christopher Hui mentioned in an interview that stablecoins can be used as an alternative payment method for local currency fluctuations in the "Belt and Road" region, especially suitable for infrastructure projects, engineering contracting, and other scenarios where the foreign exchange market is underdeveloped.
Paul Chan said that Hong Kong will continue to promote the tokenization path of financial assets, gradually introduce token settlement mechanisms in the green bonds, ETFs, metal commodities, and other markets, and establish a bridge between transaction currencies and on-chain assets through stablecoins.
## IV. Fiat-Pegged Mechanism is Open, RMB Stablecoins Need to be Carefully Considered
Regarding the arrangement of pegged currencies, policymakers have made it clear that the Hong Kong regulatory framework is open in design.
On July 30, Arthur Yuen said that applicants can choose to peg to a certain fiat currency or peg to a basket of fiat currencies, and only need to clearly declare it when applying.
Previously, Christopher Hui had also repeatedly talked about the possibility of "RMB stablecoins." He pointed out that the law does not prohibit pegging to the RMB, but if it involves exchange rate management and macroeconomic policies, it needs to be communicated and coordinated with relevant mainland institutions. "Hong Kong has legal space, but if it is to be done, the exchange rate and monetary policy of the entire country must be taken into account."
Paul Chan also pointed out in his Secretary's Blog that allowing the use of different fiat currencies as pegged assets is conducive to attracting more international institutions to choose to issue stablecoins in Hong Kong based on their actual application scenarios.
## V. Cautious Reminders to Investors and the Public
While promoting system construction, many policymakers have also issued calm reminders about market enthusiasm.
Legislative Councilor Duncan Chiu said that Hong Kong has broad space to develop stablecoins and will become a landing experimental field combining finance and the real economy in the future. However, he specifically reminded that retail investors should remain vigilant in the face of emerging asset classes, should not blindly follow the trend, and need to fully understand product risks.
The HKMA has also issued an announcement reminding the public to be wary of unauthorized stablecoin projects or individuals claiming to be "licensed" or "applying for a license," emphasizing that if the public holds unlicensed stablecoins, they must bear the relevant risks themselves.
# How Does the Market View Hong Kong's Stablecoin Regulation?
With the Hong Kong "Stablecoin Ordinance" about to be implemented, the market has launched intensive discussions on issues such as the pace of licensing, scenario paths, and the possibility of RMB anchoring. Voices from securities companies, fund companies, foreign investment banks, and the media are gradually revealing the market's structural expectations and potential impact on this regulatory system.
## I. Licensing Pace and Expectations for the First Batch of Licensed Institutions
On July 30, CITIC Securities released a research report pointing out that the "Summary Note on Licensing Regime for Stablecoin Issuers" will be the most valuable official document for the current application stage. The report expects that the number of the first batch of stablecoin licenses will be "only single digits" and is expected to be implemented before the end of the year at the earliest. The HKMA encourages institutions to contact the regulator before August 31, and the official application deadline is September 30.
The report suggests paying attention to two main lines: one is issuers with a clear possibility of obtaining a license; the other is platform companies that have determined to participate in the construction of stablecoin use scenarios.
Gan Tian, CEO of China Asset Management (Hong Kong), regards the current stage as an inflection point where "basic rules have been set and scenario pilots are waiting to be launched." He revealed that China Asset Management has participated in the Hong Kong stablecoin sandbox test and is exploring the integrated path of payment, subscription, redemption, and asset management. He believes that whoever can take the lead in opening up the closed loop of "compliance + landing + connecting assets" in the future may become the leading force in the stablecoin market.
## II. Regulatory Path and the Idea of "Dual-Track Parallel" for Hong Kong Dollar/RMB
On July 23, Ping An Securities released a report stating that Hong Kong may form a dual-track regulatory pattern of "US dollar stablecoins connecting to the international market + Hong Kong dollar stablecoins connecting to the mainland." On the one hand, it continues to attract US dollar-dominated projects to Hong Kong; on the other hand, it also reserves institutional space for the internationalization of the RMB.
The report pointed out that Hong Kong's definition of stablecoins is not limited to a certain type of fiat currency, and the market share of non-US dollar stablecoins may increase in the future. The current Hong Kong stablecoin regulation has included overseas projects that are "partially anchored to the Hong Kong dollar" in the regulatory scope.
Xiao Feng (Chairman of HashKey Group) said in an interview that Hong Kong's stablecoin license will not be limited to Hong Kong dollar pegs, and the pegged currency and deployment of public chain networks will be determined by the issuer. He mentioned that networks such as Ethereum and Solana can become Hong Kong's stablecoin deployment infrastructure.
## III. Policy Expectations and Financial Function Ideas of CNH Stablecoins
Since June, whether the "offshore RMB stablecoin (CNH Stablecoin)" will be piloted in Hong Kong first has become a hot topic in the market.
Morgan Stanley pointed out that the Hong Kong Stablecoin Ordinance "paved the first legal path" for CNH stablecoins. Supported by an offshore liquidity pool of approximately RMB 1 trillion, CNH stablecoins can verify the feasibility of cross-border settlement without violating mainland capital controls and serve as a supplementary payment channel other than CIPS and SWIFT.
Xing Ziqiang, chief economist of Morgan Stanley China, said that Hong Kong should first promote stablecoins pegged to the US dollar and Hong Kong dollar to establish a foundation of technology and market trust, and then gradually introduce CNH stablecoins to strengthen the RMB's position in the digital payment system.
The Hong Kong Economic Journal wrote that Hong Kong can serve as a "pioneer" to promote the implementation of CNH stablecoins to cope with the competition for international payment discourse power. But the premise is that regulatory requirements such as anti-money laundering and counter-terrorist financing must be properly handled.
The Economic Observer pointed out in a commentary that if CNH stablecoins are piloted in Hong Kong first, it will build an RMB channel independent of the SWIFT system and open a new digital path for the internationalization of the RMB. This exploration may become another institutional leap after the RMB cross-border settlement mechanism in 2009.
Wang Yongli, former vice president of Bank of China, also published an article saying that the United States should actively respond to the strategic development of US dollar stablecoins through legislation. The Hong Kong stablecoin regulatory system is at the forefront and has the realistic conditions to pilot CNH stablecoins first, which can be used primarily for overseas crypto asset trading and clearing.
## IV. Financial Market Impact and Capital Concerns
Guangfa Securities pointed out in a report on June 3 that although the Hong Kong stablecoin bill is still in its early stages, it will bring structural investment opportunities in the short term, mainly concentrated in digital currencies, cross-border payments, blockchain, RWA, and other sectors. The report believes that if the policy clearly supports RMB-pegged stablecoins, some related A-share companies will benefit from the compliance value release of the "Hong Kong Bridge Channel."
However, Guangfa Securities also pointed out that due to the current strict domestic virtual asset supervision, the probability of large-scale incremental funds entering the market is still low.
Ping An Securities further added that with the gradual formation of global stablecoin supervision, it is expected to promote the establishment of a unified international regulatory framework in the future. China needs to seize the institutional window period, explore controllable paths through Hong Kong, and avoid being fully monopolized by US dollar stablecoins in the digital asset field.
CCTV's "Yuyuan Tantian" and "Securities Times" and other media have also published comments, believing that the United States is promoting the digitalization of the US dollar through stablecoins, which is a new form of financial expansion. If China has a long-term blank in the stablecoin layout, it may passively respond to the new settlement network dominated by the US dollar.
# Who is Preparing to Apply for a Hong Kong Stablecoin License?
With the "Stablecoin Ordinance" set to take effect on August 1, 2025, many companies are accelerating their entry and preparing or announcing their application for a stablecoin issuer license. These participants come from different industry backgrounds, including financial institutions, technology platforms, payment companies, and blockchain startups, reflecting the diverse responses stimulated by the implementation of the Hong Kong stablecoin regulatory system.
## I. Overall Market Entry Enthusiasm
According to a report on July 14, **50 to 60** companies are interested in applying for a Hong Kong stablecoin license.
* About half of them are payment institutions, and the other half are well-known Internet companies;
* Most have Chinese capital background;
* It is expected that only **3–4** licenses will be issued in the first stage, and the initial stablecoins will mainly be pegged to the Hong Kong dollar and the US dollar.
## II. Sandbox Pilot Institution List (Announced on July 18, 2024)
The following 5 institutions participated in the stablecoin issuer sandbox test:
1. Jingdong Coin Chain Technology (Hong Kong) Co., Ltd.
2. Yuan Coin Innovation Technology Co., Ltd.
3. Standard Chartered Bank (Hong Kong) Limited
4. Anni Group Co., Ltd.
5. Hong Kong Telecommunications (HKT) Limited
## III. Companies that have Clearly Stated that they will Apply or are Applying for a License
* **China SanSan Media**
Announced on July 15 that it intends to apply for a Hong Kong stablecoin license, and the funds will come from share placement and cash reserves.
* **Tiansheng Capital**
Announced on July 11 that it plans to establish a digital asset trading and settlement company and apply for a stablecoin license. It plans to use stablecoins for art trading and settlement services, focusing on cross-border trade settlement.
* **DianDian Digital**
Announced on July 3 that it is preparing to apply for a Hong Kong stablecoin license.
* **Animoca Brands + Standard Chartered Bank (Hong Kong) + Hong Kong Telecommunications**
Has repeatedly stated publicly that it will jointly establish a joint venture to apply for a license and issue a Hong Kong dollar stablecoin. The stablecoin will be used for game virtual asset transactions, cross-border trade, and financial settlement scenarios.
* **JD.com**
Has publicly released official website information stating that it will issue a stablecoin pegged 1:1 to the Hong Kong dollar in Hong Kong. The issuer is Jingdong Coin Chain Technology (Hong Kong), and it was also selected as a "sandbox" participant in the HKMA stablecoin program.
* **Ant International**
According to people familiar with the matter reported in June, the company will immediately apply for an issuer license after the Hong Kong "Stablecoin Ordinance" takes effect, and also plans to seek permission in Singapore and Luxembourg.
* **LianLian Digital**
According to people familiar with the matter, LianLian Digital is actively exploring applying for stablecoin licenses in Hong Kong and Singapore. Its subsidiary DFX Labs already holds a virtual asset trading platform license issued by the Hong Kong Securities and Futures Commission.
## IV. Companies that are Researching, Paying Attention to, or Laying out Related Businesses
* **Ping An of China**
Responded on the interactive platform on July 21 that it has noticed the changes in Hong Kong's stablecoin supervision, is paying close attention and actively researching.
* **Sanwei Xin'an**
Said on June 30 that the company has participated in related businesses such as virtual currencies and stablecoins in Hong Kong, and as a password infrastructure provider, it will provide security for related projects.
## V. Clarification Items
* **Octopus Company**
Was once rumored to be involved in a stablecoin accelerator project. The company subsequently clarified that it only participated in an exploratory program led by Brinc as a "consultant," which was a conceptual study and not a stablecoin product development or formal cooperation.
[Odaily]
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