Hong Kong will begin issuing stablecoin issuer licenses in March, though only a “very small number” will be approved at first, the city’s top monetary official told legislators, Reuters reports.
Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA), said the licensing review is almost complete and the regulator expects to roll out the first tranche of approvals next month. The initial approach will be cautious, with stringent checks before any issuers are authorized.
Stablecoins — cryptocurrencies designed to maintain a stable value by pegging to fiat currencies such as the U.S. dollar — have seen rapid uptake as regulators worldwide craft frameworks for their use. On-chain transfers of stablecoins moved roughly $35 trillion last year, and the asset class currently sits at about $300 billion. Citi has forecast dramatic growth, estimating stablecoins could expand to between $1.9 trillion and $4 trillion.
Yue said the HKMA’s licensing assessments will focus on core safeguards, including robust risk management, anti-money-laundering controls, and transparency around the assets backing each stablecoin. Licensed issuers will also have to follow local rules for cross-border operations, and Hong Kong is open to exploring mutual recognition arrangements with other jurisdictions in the future.
Industry figures have welcomed the move. Standard Chartered CEO Bill Winters suggested Hong Kong’s push into tokenized money and regulated stablecoins could underpin a new era of digital trade settlement—highlighting the potential economic and operational benefits if the regime is carefully implemented.
The limited initial approvals and strict criteria indicate Hong Kong is aiming for a measured rollout that balances innovation with financial stability and integrity.
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