Hong Kong to Launch Its First Stablecoin Issuer Licenses in Q1 as Part of Crypto Expansion

Hong Kong is getting ready to issue its initial group of stablecoin issuer licenses within the first quarter of the year. This move aims to strengthen its position as a regional center for digital assets amid increasing global competition.

Key Takeaways:

Hong Kong plans to issue its first stablecoin licenses in Q1 to further its digital asset strategy.
Issuers will need to comply with strict standards regarding reserves, redemption, and risk management.
This initiative is part of a broader effort towards crypto regulation and tokenization.

During a speech at the World Economic Forum in Davos, Hong Kong's Financial Secretary, Paul Chan, noted that the city’s approach to cryptocurrency regulation is aimed at being “responsible and sustainable,” according to a report by the South China Morning Post.

Chan confirmed that the first wave of stablecoin licenses is anticipated to be issued in the upcoming months.

Hong Kong to Launch Its First Stablecoin Issuer Licenses in Q1 as Part of Crypto Expansion

Stablecoins Central to Hong Kong's Digital Finance Strategy

Chan emphasized that stablecoins will play a pivotal role in developing a comprehensive digital asset ecosystem in Hong Kong. This ecosystem will encompass regulated stablecoin issuance, licensed trading platforms, and tokenized financial products.

He views digital finance as a crucial growth area for the city, which aims to retain its reputation as a leading global financial hub.

The stablecoin licensing regime, approved in 2025, outlines stringent demands for fiat-referenced stablecoin issuers. This includes guidelines on reserve backing, redemption rights, governance, and risk management. These measures reflect a regulatory commitment to ensuring financial stability and consumer safety, especially following recent volatility in the global cryptocurrency landscape.

Hong Kong's plans for stablecoins align seamlessly with its existing framework for cryptocurrency trading platforms. To date, the Securities and Futures Commission has issued licenses to 11 virtual asset trading platforms. Some of the approved operators include OSL, HashKey, and Bullish, as disclosed by the regulator.

In addition to trading and stablecoins, Hong Kong is intensifying its focus on tokenization. In November 2025, the Hong Kong Monetary Authority launched a pilot project under Project Ensemble to test real-value transactions using tokenized deposits and digital assets. This initiative involves several major banks and asset managers.

Concurrently, regulators are seeking feedback on new proposals that would establish additional licensing frameworks for crypto asset dealing, advisory, and management services.

Concerns Over New Crypto Regulations from Asset Managers

Recently, the Hong Kong Securities and Futures Professionals Association expressed concerns that stricter regulations on virtual asset management could dissuade traditional asset managers. They highlighted that increased compliance costs could hinder institutional participation just as the city aims to grow its digital asset market.

In a submission to the Securities and Futures Commission, the Association pushed back against the proposal to eliminate the long-standing “de minimis” exemption for Type 9 licensed managers, which currently allows limited crypto exposure without necessitating a separate virtual asset management license.

This debate comes at a pivotal time as Hong Kong continues to refine its digital asset framework with regulators consulting on new licensing regimes for virtual asset dealing, advisory, and management services.