Key Notes
- At least forty firms plan on applying for stablecoin licences in Hong Kong.
- Only a handful of licences are expected to be approved.
- Companies are expected to meet strict requirements before they are approved by the authorities.
At least 40 firms in Hong Kong plan to apply for stablecoin licenses ahead of the expected launch in August 2025. However, only a few are likely to be approved due to strict regulatory requirements.
This development is expected to follow the implementation of Hong Kong’s stablecoin legislation on August 1, which will only permit companies that meet the licensing requirements to issue fiat-backed stablecoins. The move is part of the authorities’ broader strategy to establish regulatory oversight of digital assets within the region.
The Hong Kong Monetary Authority is overseeing the license applications. According to reports , several major financial institutions in the region plan to apply for licenses. However, the regulatory authority is expected to issue only a limited number. The number of licenses granted is likely to be in the single digits.
Some of the companies planning to apply for a stablecoin issuance license include Standard Chartered, JD.com, Yuanbi, and several smaller businesses.
Reports also indicate that more than 40 firms are in discussions with local partners to understand the necessary requirements and improve their chances of approval.
Cobo’s Senior Vice President, Alex Zuo, stated that stablecoin licenses in Hong Kong remain relatively scarce. “More than 40 companies have submitted applications, and law firms report that dozens more intend to apply.
The competition is very fierce,” he noted. Zuo added that most applicants are major Chinese financial institutions and internet companies.
Hong Kong’s Stablecoin Bill
In the second quarter of 2025, Hong Kong’s Legislative Council passed the Stablecoins Bill , which allows companies to apply for issuance licenses through the Hong Kong Monetary Authority (HKMA).
After the Stablecoins Act comes into effect, companies will need a license to issue any stablecoin linked to the Hong Kong dollar.
To qualify, they must meet several key requirements. These include managing reserve assets properly, keeping client funds separate, having a strong system to keep the stablecoin’s value stable, and allowing users to redeem their stablecoins at face value under fair conditions.
Companies will also need to meet additional key requirements, such as applying anti-money laundering and counter-terrorist financing measures, managing risks effectively, providing transparency through regular disclosures and audits, and confirming that key personnel are fit and proper for their roles.
In recent news, Hong Kong is set to issue its third tokenized green bond under a revised schedule using blockchain technology, alongside new ETF stamp duty relief and the launch of the LEAP framework to regulate stablecoin issuers starting August 1.
