The licensed institutions are expected to launch stablecoins as early as this year.

The first stablecoin licenses in Hong Kong have finally been issued.

At 5:00 PM on April 10, the Hong Kong Monetary Authority (HKMA) announced that it would grant the first batch of stablecoin issuer licenses to two entities: HSBC and Dingdian Fintech Limited—a joint venture established by Standard Chartered Bank (Hong Kong), HKT Limited, and Ani Group. The HKMA also stated that, based on the current business plans of these two institutions, regulated stablecoins in Hong Kong are expected to be rolled out gradually from mid-year to second half of 2025.

HKMA Chief Executive Edward Yiu said: “Issuing stablecoin issuer licenses marks a significant milestone in Hong Kong’s digital asset development. The regulatory framework provides an orderly operating environment, enabling stablecoin issuers to leverage innovative technologies while effectively safeguarding user interests and managing associated risks, thus ensuring the healthy, responsible, and sustainable growth of Hong Kong’s stablecoin ecosystem.”

I look forward to issuers commencing operations as planned, proactively exploring new opportunities while maintaining prudent risk management, promoting compliant stablecoin adoption, addressing pain points in financial and economic activities, and creating value for citizens and enterprises—driving the healthy development of Hong Kong’s digital assets.”

Previously, it was reported that the HKMA completed its final review of the first round of applications by mid-March 2026. A total of 36 applications were received, with the initial plan to issue 2–3 licenses under strict regulatory standards. OSL Group (863.HK), which had been widely anticipated to secure one of the licenses, was ultimately excluded today.

OSL Group stated today: “We welcome the issuance of the first stablecoin issuer licenses by the Hong Kong Monetary Authority under the Stablecoin Ordinance and will continue to collaborate closely with all stakeholders, actively participating in the development of Hong Kong’s compliant stablecoin ecosystem.”

Two Years in the Making: Hong Kong’s Compliant Stablecoins Finally Land

The issuance of Hong Kong’s first stablecoin licenses signifies a new phase in the implementation of its stablecoin regulatory regime. However, this compliance license has taken nearly two years to materialize, representing a hard-won achievement resulting from the delicate balance between financial innovation and regulatory safety in Hong Kong.

Looking back two years ago, in March 2024, the Hong Kong Monetary Authority (HKMA) officially launched the “Stablecoin Issuer Sandbox Arrangement,” marking a pivotal step toward practical implementation of stablecoin regulation. This signaled Hong Kong’s openness to crypto-finance, attracting numerous institutions—including traditional financial giants and native Web3 firms—to apply for participation in sandbox trials.

In July of the same year, after four months of review, the HKMA announced the list of sandbox participants: JD Coinchain Technology (Hong Kong) Limited, Yuanbi Innovation Technology Limited, Standard Chartered Bank (Hong Kong) Limited, Ani Group Limited, and HKT Limited—five institutions granted eligibility.

The market momentum was ignited. This confirmed that Hong Kong’s stablecoin regulation had entered the stage of real-world testing and regulatory calibration, bringing Hong Kong significantly closer to formally incorporating stablecoins into its regulated framework.

The Hong Kong stablecoin sandbox experiment lasted for one year. On August 1, 2025, the Hong Kong Stablecoin Ordinance came into effect, officially implementing the regulatory regime for stablecoin issuers—an essential milestone in Hong Kong’s virtual asset development, marking the beginning of the licensed era for Hong Kong’s stablecoins.

The second half of 2025 coincided with a surge in narratives around RWA (Real-World Assets), tokenized equities, and publicly listed company crypto treasuries—key intersections between crypto and traditional finance. With the Stablecoin Ordinance now in force, market expectations grew that Hong Kong’s crypto finance sector was entering a new age of exploration—the “Great Age of Nautical Discovery” in digital finance.

Thus, when the HKMA opened the first round of stablecoin issuer license applications, over 70 companies reportedly expressed interest, including financial institutions, Web2 internet firms, and blockchain ventures.

Yet just as the situation seemed to heat up, regulatory cooling set in for stablecoin and RWA-related businesses in Hong Kong. In September 2025, reports emerged that companies engaged in stablecoin and RWA activities across Hong Kong were being “warned” to maintain low visibility and cautious communication regarding these initiatives.

Meanwhile, mainland Chinese firms’ involvement in Hong Kong’s stablecoin business faced tighter controls. According to Caixin, due to the nascent stage of Hong Kong’s stablecoin industry, excessive participation by mainland institutions could introduce systemic risks, necessitating a preliminary isolation of such exposures.

This sudden shift directly led to a sharp decline in license applications. Not only did Chinese state-owned banks and central SOEs withdraw, but major Web2 internet companies also suspended their stablecoin issuance plans. By October 2025, sources revealed that Ant Group (Alibaba) and JD.com had both paused their respective plans to issue stablecoins in Hong Kong.

Ultimately, the HKMA received only 36 applications for stablecoin licenses, leading the market to settle down.

Early this year, in February, HKMA Chief Executive Edward Yiu stated that efforts were underway to issue Hong Kong’s first stablecoin issuer licenses by March, emphasizing: “The number of initial licenses will certainly be limited, prioritizing stability above all.”

Now, more than eight months since the enactment of the Hong Kong Stablecoin Ordinance, the first batch of stablecoin licenses has finally been issued. Over these two years, the market has urged, capital has surged, concepts have been hyped, and regulators have tightened control. After enduring countless challenges, Hong Kong’s compliant stablecoin journey—from sandbox testing, legislative implementation, application review, to official licensing—has now been fully traversed.

The Era of Hong Kong Stablecoins is Upon Us

Undoubtedly, the issuance of Hong Kong’s first stablecoin licenses represents another crucial milestone in its pursuit of becoming an international digital asset financial hub.

For Hong Kong, this licensing event signifies that stablecoin regulation is no longer confined to theoretical frameworks. As licensed institutions begin actual stablecoin operations—spanning cross-border payments, digital securities, DeFi, and more—the city’s digital financial markets will gain renewed vitality. This positions Hong Kong to play a more influential role in the global digital financial system and seize strategic high ground in the “digital seigniorage” race.

On a more granular level, the issuance of the first licenses presents a fresh opportunity for Hong Kong’s crypto market to reignite. Previously, when people thought of Hong Kong’s stablecoins, they often recalled forums, summits, and speculation—excitement abounded, but tangible business remained elusive. Now, with the first licensed entities able to operate legally, real exploration can begin in areas like cross-border payments, institutional settlement, and on-chain finance—unlocking Hong Kong’s true market potential.

Naturally, the issuance of the first licenses does not signify the endgame of the market. While early entrants will enjoy a first-mover advantage, later players still have room to catch up. It is only when subsequent rounds—second, third, etc.—of licenses are issued that competition will truly intensify, shifting focus to use cases, execution capability, product quality, and service excellence.

Therefore, the first license issuance is not the climax of Hong Kong’s stablecoin story—it is, quite the opposite, merely the opening act. The grand era of Hong Kong stablecoins is about to unfold.