Hong Kong is ready to start issuing stablecoin licenses in the coming months. This is a major milestone for the city and its digital finance ambitions. This is expected to pave the way for both international and local firms to formally operate in a regulated environment in Hong Kong.

Major industry players such as JD.com, Ant Group, and Standard Chartered are already expressing their interest in operating in the city.

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Hong Kong Ready to Issue Stablecoin Licenses

Financial Secretary Paul Chan Mo-po said in an interview with China Daily on June 20 that regulators have received a “number of applications” for stablecoin licenses. He also emphasized the government’s phased approach and how it is first focusing on tokens pegged to fiat currencies.

All of the initial licenses will fall under the newly passed Stablecoins Ordinance, which takes effect on August 1 and requires all issuers of fiat-backed stablecoins to be licensed by the Hong Kong Monetary Authority (HKMA).

“The stablecoin, particularly when it is referenced to fiat currencies, has many user case scenarios,” Chan noted. He also highlighted cross-border payments and real-world economic integration as key examples.

The initiative builds on the progress made under the HKMA’s stablecoin sandbox, a pilot program launched last July. Participants included Hong Kong Telecommunications, Standard Chartered, and Animoca Brands, all of whom have been testing practical applications for stablecoins in commerce and finance.

The new government is making its best efforts to position the city as the leader in Web3 finance. By licensing stablecoin issuers, authorities hope to ensure digital assets are used responsibly, with safeguards in place to prevent misuse or excessive speculation.

Looking ahead, the government plans to expand licensing criteria to include more complex stablecoin models and broader use-case integration. This would allow digital assets to be used in logistics, trade, and beyond, deepening their role in the traditional economy.

The announcement has already stirred strong interest among tech and finance giants. Alongside Ant Group and JD.com, several logistics and fintech firms have confirmed plans to apply for licensing. With the stablecoin ordinance coming into force on August 1, Hong Kong is poised to become one of the first major jurisdictions in Asia to roll out a full-scale regulatory framework for stablecoins, potentially setting a precedent for others to follow.