Hong Kong aims to issue the first batch of stablecoin-issuer licenses in March, Hong Kong Monetary Authority Chief Executive Eddie Yue Wai-man said at a Legislative Council meeting on Monday.
Only a "very small number" of licenses will be granted in the initial round, underscoring prudence and financial stability, Yue added.
He said that the HKMA has received 36 applications for stablecoin licenses in the first round and is currently conducting detailed assessments.
The HKMA has requested additional information from some applicants, including use cases, risk management, anti-money laundering measures, and the backing assets of their respective stablecoins.
He said that the regulatory regime has clearly stipulated that any issuers engaging in cross-border activities must comply with local regulatory requirements. For an overseas-issued stablecoin to be used in Hong Kong — particularly for retail purposes — the issuer also need to apply for a license under the current framework. Among the key conditions are the establishment of an office and holding reserve assets in the city.
The global stablecoin regulatory regime landscape remains in its nascent stage, and looking ahead, discussions on the potential of mutual recognition arrangements internationally could emerge in the future, Yue said.
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To consolidate its position as an international financial hub and promote the healthy development of Web3 and virtual assets, Hong Kong launched a stablecoin-issuer "sandbox" in 2024, aiming to explore how to integrate Web3 technologies with traditional finance to foster innovation in payments and financial markets.
Hong Kong established a stablecoin regulatory regime in August, requiring any individual or entity-issuing fiat-pegged stablecoin in Hong Kong to obtain a license from the HKMA.
At the Legislative Council meeting, Yue also said that Hong Kong's economy is performing well, with a steady financial system. In 2025, Hong Kong recorded a GDP growth of 3.5 percent, and the stock market achieved the highest growth globally, rising about 28 percent. Asset prices, private consumption, investment, and goods exports all showed strong performance.
Looking ahead to 2026, Yue said that uncertainties in the external environment, such as the pace of the US Federal Reserve's interest rate cuts and geopolitical factors, may still linger. However, buoyed by the rapid development of artificial intelligence, the outlook for goods exports in the Asia-Pacific region remains favorable, he said.
During the 15th Five-Year Plan (2026–30) period, the nation will continue to advance its high-quality development, bolstering Hong Kong's steady economic growth, Yue said.
Contact the writer at akirawang@chinadailyhk.com
