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Hong Kong Stablecoin Regulation: From Discussion to Legislation
Amid the global wave of stablecoin regulation, how can Hong Kong establish a leading licensing system in the Asia-Pacific region?
Global Stablecoin Regulatory Wave
Stablecoins, serving as a crucial bridge between traditional finance and crypto assets, have experienced rapid growth in global financial markets in recent years. The 2022 TerraUSD (UST) collapse triggered heightened concerns among global regulators regarding the systemic risks of stablecoins. The EU pioneered a unified regulatory framework through the MiCA regulation, the US pushed for the GENIUS Act, and Singapore's MAS released its stablecoin regulatory framework—major global financial centers are accelerating their stablecoin legislation processes. Hong Kong, as an international financial center, has also actively responded to this trend, officially implementing the Stablecoin Ordinance (Cap. 656) on August 1, 2025, becoming one of the first jurisdictions in the Asia-Pacific region to establish a dedicated stablecoin issuer licensing system.
The Stablecoin Ordinance (Cap. 656) established the Hong Kong stablecoin issuer license system, with the Hong Kong Monetary Authority (HKMA) acting as the licensing and regulatory body.
Source: HKMA, Explanatory Note on Licensing of Stablecoin Issuers (July 2025)
Hong Kong's Stablecoin Regulatory History
Since releasing its discussion paper on crypto assets and stablecoins in January 2022, the Hong Kong Securities and Futures Commission (HKMA) has, after more than four years of policy research, public consultation, and legislative procedures, finally established a comprehensive stablecoin issuer licensing system. On April 10, 2026, the HKMA officially issued the first two stablecoin issuer licenses to Infintech and HSBC, marking a new stage in Hong Kong's stablecoin regulation.
Institutional positioning and strategic significance
The core objective of Hong Kong's stablecoin licensing regime is to balance financial innovation and risk management—maintaining monetary and financial system stability while promoting the sustainable development of Hong Kong's virtual asset ecosystem. Initially, the regime focuses on fiat-referenced stablecoins (FRS), which are stablecoins pegged to one or more fiat currencies. These are currently the most widely used type of stablecoin in the market (such as USDT and USDC). The HKMA retains the power to expand its regulatory scope to other types of stablecoins in the future.
Supervision Timeline
- June 2022
HKMA releases discussion paper on crypto assets and stablecoins - June 2023
Discussion document consultation summary - June 2023
Publish legislative proposal consultation document - December 6, 2024
Stablecoin Bill Submitted to Legislative Council - May 21, 2025
The Legislative Council passed the Stablecoin Ordinance. - June 6, 2025
The effective date will be published in the gazette. - July 29, 2025
Issue regulatory guidance and AML/CFT guidance - August 1, 2025
The Stablecoin Regulations officially came into effect. - October 31, 2025
The transition period for existing issuers has ended. - January 31, 2026
Temporary license expires - April 10, 2026
The first batch of stablecoin issuer licenses have been issued (Infintech, HSBC).
Supervision Timeline
| Item | content |
|---|---|
| Licensed issuers | 2 companies (as of April 2026) |
| regulatory agency | HKMA (Hong Kong Monetary Authority) |
| Core laws | Stablecoin Regulations (Cap. 656) |
| Scope of application | Fiat-backed stablecoins (FRS) |
| Minimum capital requirements | HK$2,500 million |
| Annual license fee | HK$113,020 |
Supervision Timeline
| Jurisdiction | regulatory agency | Effective Time |
|---|---|---|
| Hong Kong | HKMA | June 2025 |
| European Union | competent authorities of each member state | June 2024 |
| Singapore | MAS | June 2023 |
| United States | Federal/state regulators | In legislation |
| Japan | FSA | June 2023 |
| United Arab Emirates | VARA/CBUAE | 2024 |
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What is a stablecoin issuer license?
Understanding the core definitions and key concepts in the Stablecoin Ordinance
Legal definition of stablecoins
Stablecoins are digital representations of value that are protected in a cryptographic manner, (i) expressed in units of account or as a store of economic value; (ii) used or intended to be used as a publicly accepted medium of exchange (for payment of goods or services, settlement of debts or investments); (iii) can be transferred, stored or traded electronically; and (iv) operate on a distributed ledger or similar asset database.
— Article 3 of the Stablecoin Ordinance
Specified Stablecoin Definition
Designated stablecoins are those that claim to maintain a stable value solely based on the following assets: (i) one or more fiat currencies; (ii) a unit of account designated by the Hong Kong Monetary Authority (HKMA); and (iii) a store of economic value designated by the HKMA. Currently, the scope of designated stablecoins only covers stablecoins that claim to maintain a stable value solely based on one or more fiat currencies, commonly referred to as "fiat-referenced stablecoins" (FRS).
— Article 4 of the Stablecoin Ordinance + Section 2.2 of the HKMA Summary
Regulated stablecoin activities
| Activity type | Explain |
|---|---|
| Issued in Hong Kong | Issuing designated stablecoins in Hong Kong through business operations |
| Overseas issuance linked to Hong Kong dollar | Issuing designated stablecoins pegged to the Hong Kong dollar through business operations outside of Hong Kong. |
| Actively promote | Actively promoting themselves or appearing to be involved in regulated stablecoin activities to the public. |
Important Note: Even if the stablecoin issuer is located outside Hong Kong, it must apply for an HKMA license if its issued stablecoin is pegged to the Hong Kong dollar. Furthermore, even if the actual issuance activity does not take place in Hong Kong, actively promoting it to the Hong Kong public is considered engaging in regulated activities.
Exclusion Scope (Digital value representations that are not considered stablecoins)
Central bank/government issuance
Digital currencies (such as CBDCs) issued by central banks, governments, or their authorized entities.
Limited-use digital tokens
Limited-use digital tokens as defined in Article 53ZR of AMLO
Securities/Futures Contracts
Securities or futures contracts as defined in Appendix 1 of SFO
Stored value payment instruments
PSSVFO defines the floating amount or SVF deposit.
bank deposits
Deposits as defined in the Banking Regulations
Filcoins as a reference for stablecoins
Stablecoins pegged to gold, commodities, or crypto assets
Key attributes
| Attributes | Details |
|---|---|
| License Name | Stablecoin Issuer Licence |
| Regulatory laws | Stablecoin Regulations (Cap. 656) |
| regulatory agency | HKMA (Hong Kong Monetary Authority) |
| Scope of application | Fiat currency references stablecoin (FRS) issuance |
| Licence validity period | Valid indefinitely (license fee payable annually). |
| Is an exemption possible? | HKMA may exempt issuers or categories with low risk. |
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Who needs to apply for a stablecoin issuer license?
Understand the scope of application, judgment criteria, and the offeror system.
No person may engage in or appear to be engaged in regulated stablecoin activities without a license or exemption. Violators are liable to a maximum fine of HK$5,000,000 and imprisonment for up to 7 years, with a daily fine of HK$100,000.
— Article 8 of the Stablecoin Ordinance
Supervision Timeline
The HKMA will adopt a holistic approach, considering all relevant factors to determine whether a stablecoin is "issued in Hong Kong":
- Where does the issuer conduct its day-to-day management and operations?
- Where is the issuer registered?
- Where do stablecoins take minting and burning?
- Where are reserve assets managed?
- Where are the bank accounts maintained for processing cash flows from casting or redemption requests?
The factors mentioned above are not exhaustive or decisive. The HKMA will make a determination based on the specific circumstances of each case.
Factors for determining "aggressive selling"
Factors considered by the HKMA in determining whether something constitutes "aggressive selling":
- Marketing Language
The language used in marketing messages, and whether the website uses Chinese. - target group
Is the information targeted at people living in Hong Kong? - Domain
Whether to use a Hong Kong domain name or a domain name that may give the impression that the issuer has a presence in Hong Kong. - Marketing Plan
Is there a detailed marketing plan and promotional activities?
Analysis of Applicable Objects
| Entity type | Is a license required? | Explain |
|---|---|---|
| Companies issuing fiat stablecoins in Hong Kong | need | The core eligible applicants must hold an HKMA license. |
| Companies issuing Hong Kong dollar-pegged stablecoins overseas | need | Even if a business does not operate in Hong Kong, it must be licensed if it is pegged to the Hong Kong dollar. |
| Offshore companies actively promoting stablecoins to Hong Kong residents | need | Active sales practices themselves constitute regulated activities |
| Recognized institutions (banks) | need | A license is required, but the requirement for full capital contribution and certain minimum liability conditions is waived. |
| Platforms that only trade/custody stablecoins | No need | VATP/VA Dealing licenses under the jurisdiction of SFC |
| Companies that issue non-fiat currencies refer to stablecoins | No need | It is not a designated stablecoin and is currently outside the scope of regulation. |
| Small issuers with low risk | It depends on the situation | HKMA may grant exemption at its discretion. |
Licensing Offeror System
Licensed stablecoin issuers can only authorize "licensed offerors" to offer (sell) their stablecoins to the public. Licensed offerors include five types of entities:
1
Licensed stablecoin issuers
2
Recognized institutions (banks)
3
SVF licensee
4
SFC Licensed Virtual Asset Trading Platform
5
SFC Type 1 Licensed Corporation
— Article 9 of the Stablecoin Ordinance
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Application requirements for stablecoin issuer license
The 12 minimum requirements cover aspects such as company status, financial resources, reserve management, and compliance obligations.
Condition 1: Company Status
The applicant must be a company incorporated in Hong Kong under the Companies Ordinance (Cap. 622) or an authorized institution (bank) incorporated outside Hong Kong. Any non-authorized institution incorporated outside Hong Kong must establish a subsidiary in Hong Kong, with that subsidiary acting as the license applicant.
The applicant must be a company incorporated in Hong Kong under the Companies Ordinance (Cap. 622) or an authorized institution incorporated outside Hong Kong.
— Summary of the Hong Kong Monetary Authority, paragraph 3.2.1
Condition 2: Financial Resources
| Claim | Amount/Standard |
|---|---|
| Minimum Paid-up Capital | HK$2,500 million (or equivalent in freely convertible currencies) |
| Minimum quick capital | HK$3 million |
| Excess quick funds | At least equal to 12 months of operating costs |
| Restrictions on the Use of Funds | The portion equivalent to the financial resource requirements can only be used for business activities. |
Recognized institutions (banks) are exempt from the requirement of full payment of share capital.
Condition 3: Reserve Asset Management
- A separate pool of reserve assets must be maintained for each specified stablecoin.
- Reserve assets must be completely segregated from the issuer's other assets and reserves of different types of stablecoins.
- The market value of reserve assets must always be no less than the face value of circulating stablecoins (100% full reserve).
- HKMA expects to over-collateralize in response to market volatility.
- Reserve assets must be denominated in a stablecoin reference currency (currency matching).
- Acceptable reserve assets: cash, bank deposits with a maturity of ≤3 months, government/central bank securities with a maturity of ≤1 year.
Eligible tokenized assets - The proceeds from reserve assets belong to the issuer and not to the holders.
Condition 4: Redemption Mechanism
- Holders have the absolute right to redeem their shares at par value.
- Redemption requests must be processed as soon as possible (within 1 business day, unless specially approved for delay by the HKMA).
- Unreasonable fees or improper obstacles must not be charged.
- In the event of bankruptcy, the holders have the right to dispose of the reserve asset pool proportionally.
Condition 5: Suitable candidate
- The CEO, directors, stablecoin managers (if applicable), and controlling shareholders must be "suitable persons".
- Factors to consider: reputation and character, knowledge and experience, compliance record, financial condition
- At least one-third of the board members are independent non-executive directors.
- Senior executives and key personnel must be based in Hong Kong.
- A face-to-face meeting with the HKMA licensing team is required.
Condition 6: Prudence and Risk Management
- Risk Governance: Risk Management Framework for the Board of Directors and Senior Executives
- Credit, liquidity and market risk management
- Technology Risk Management: IT Controls, System Security, Reliability
- Operational risk management: operational risks of business activities, processes, and systems
- Reputation risk management: monitoring and mitigating reputation risks
- Event management, business continuity and exit planning
Condition 7: AML/CFT Measures
- Customer due diligence (CDD) and ongoing monitoring
- Suspicious Transaction Report (STR)
- Sanctions screening
- record keeping
- Travel Rule Compliance
- Regular AML/CFT risk assessment
Condition 8: Prudence and stability in issuance
- There must be a realistic business plan with a reasonable prospect to generate sufficient demand.
- Conducting licensed activities in a prudent manner, without harming the interests of licensees or the monetary and financial stability of Hong Kong.
- We have sufficient capacity and resources to execute the business plan.
Condition 9: Business Activity Restrictions
- Must have dedicated and sufficient resources to conduct licensed activities
- Engaging in business activities other than those licensed requires prior consent from the HKMA.
- It must be ensured that other business activities do not pose a significant risk to the licensed activities.
Condition 10: Disclosure Requirement
A white paper must be published, providing comprehensive and transparent information about stablecoins.
The white paper must include: issuer information, stablecoin details, reserve asset management, and issuance/redemption procedures.
Return/distribution mechanism, underlying technology, and related risks
Offers to the public can only be made after the white paper has been published on the website.
Reserve assets and independent audit results must be disclosed regularly.
Information on complaint handling and remediation mechanisms must be provided.
Condition 11: No interest payments allowed
- No interest may be paid or permitted to be paid on any specified stablecoins issued by it.
- "Interest" includes any profit, income, or return generated based on the holding period, par value, or market value.
- The income generated from the management of reserve assets belongs to the issuer.
Condition 12: Restoration Planning and Orderly Exit
- A recovery plan must be developed to support the timely restoration of critical functions during major operational disruptions.
- A business exit plan must be developed, covering various scenarios that may require an orderly exit.
- The time and resources required to implement the exit plan must be assessed.
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Reserve Asset Management and Redemption Mechanism
The core safeguards for stablecoin value pegging: 100% full reserves, asset segregation, and face value redemption.
Reserve asset requirements
Reserve asset management is a core pillar of the stablecoin licensing regime. The HKMA requires issuers to maintain an independent reserve asset pool for each designated stablecoin, ensuring that the market value of the reserve assets is never less than the face value of the circulating stablecoin (100% full reserve), and expects issuers to maintain over-collateralization to cope with market volatility.
The Stablecoins Ordinance (Cap. 656) establishes a licensing regime for persons who carry on regulated stablecoin activities in Hong Kong, with the Monetary Authority as the licensing authority.
— HKMA, Explanatory Note on Licensing of Stablecoin Issuers (July 2025)
Eligible reserve asset types
| Asset type | Requirements/Restrictions |
|---|---|
| cash | Priced in reference currency |
| bank deposits | Expiry date not exceeding 3 months |
| Government/Central Bank Securities | Maturity date not exceeding 1 year, credit rating AA- or above |
| Tokenized assets | Must meet HKMA qualification standards |
| Repurchase Agreement | Collateralized by eligible securities |
Reserve Asset Custody
- Reserve assets must be entrusted to an independent and qualified custodian.
- Qualified custodians include: accredited institutions (banks), SFC-licensed trust companies, and other entities accredited by the HKMA.
- The custodian must be independent of the issuer and must not have any conflict of interest.
- A written agreement must be signed with the trustee, clearly defining the rights and obligations of all parties.
- The issuer must periodically assess the adequacy and effectiveness of the trusteeship arrangement.
Redemption mechanism
The right to redeem is a core right of stablecoin holders. The HKMA requires issuers to ensure that holders have the absolute right to redeem at par value and to process redemption requests within a reasonable timeframe.
| Redemption elements | Claim |
|---|---|
| Redemption rights | Holders have the absolute right to redeem their shares at par value. |
| Processing time limit | Within 1 business day (unless specially approved by the HKMA for a delay) |
| Redemption fees | Unreasonable fees must not be charged. |
| Redemption Barriers | Undue obstacles must not be set up. |
| bankruptcy protection | Holders have the right to dispose of the reserve asset pool proportionally. |
| Redeem currency | Redeemed in reference fiat currency |
Supervision Timeline
Circulating stablecoin face value
100 %
Market value of reserve assets
≥ 100%
Over-collateralization is recommended
Currency matching
Reserve assets must be denominated in the reference currency.
Asset segregation
Completely separate from the issuer's own assets
Independent hosting
Custody by a qualified independent custodian
Regular audit
Independent auditors conduct periodic audits
Non-compliant reserve assets
- Crypto assets/virtual assets
- corporate bonds
- Stocks or equity
- Commodities (such as gold)
- Derivatives
- Assets issued by related parties
Redemption process timeline
- T+0
Holders submit redemption requests - verify
Issuer verification of compliance - deal with
Burn stablecoins and release reserve assets - T+1
Complete redemption and pay in the reference currency.
Need professional guidance on stablecoin license applications?
Aiying has extensive experience in virtual asset compliance, providing global clients with a one-stop service from license application to ongoing compliance.
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License application process
Complete process guide from pre-application communication to license approval
01
The first stage
Pre-application communication
It is recommended to do it 3-6 months in advance.
- Initial communication with the HKMA licensing team
- Understand the application requirements and expected timeline
- Assess the feasibility of the business plan
- Prepare preliminary documents and materials
02
second stage
Formal application submission
Preparation time depends on the specific case.
- Complete and submit the license application form
- Submit all necessary supporting documents
- Application fee of HK$113,020
- Submit a detailed business plan and risk assessment
- Submit AML/CFT policy and procedure documents
03
The third phase
HKMA Audit and Assessment
The review time depends on the complexity of the case.
- HKMA reviews the completeness and accuracy of the application materials.
- Assess whether the applicant meets all minimum criteria.
- Conduct appropriate candidate assessments for key personnel.
- Additional information or an interview may be required.
- Assess the prudence and feasibility of the business plan.
04
Phase 4
License Approval and Conditions
Valid after approval
- HKMA decides whether to approve the license application.
- Licenses can be subject to conditions (such as restrictions on the scope of business).
- The issuer must comply with all licensing conditions.
- License details are registered in the public register.
- Pay annual license fees to maintain license validity
List of required documents for application
01. License Application Form (HKMA-specified format)
03. Organizational Chart and Equity Structure Chart
05. Detailed business plan (including financial forecasts)
07. Risk Management Framework Documents
09. IT System and Security Assessment Report
11. External Legal Opinion
13. Recovery Plan and Business Exit Plan
02. Company registration certificate
04. Personal information and suitability assessment data of directors, senior executives, and controlling shareholders.
06. Reserve Asset Management Policies and Procedures
08. AML/CFT Policies and Procedures
10. Stablecoin White Paper Draft
12. Qualification verification of independent auditors
14. Complaint Handling Procedures
The above list of documents is compiled based on the HKMA summary and regulatory guidelines; specific requirements may vary on a case-by-case basis.
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Costs and Capital Requirements
A list of license application fees, annual license fees, and minimum financial resource requirements.
License Fee Details
| Expense items | Amount (HK$) | Explain |
|---|---|---|
| License application fee | 113,020 | One-time payment, payable upon application. |
| Annual license fee | 113,020 | Pay annually to maintain the validity of the license. |
| License plate condition change application fee | 56,510 | Pay when applying for a change of license plate conditions |
| License renewal fee | not applicable | The license remains valid and does not require renewal. |
Minimum financial resources required
| Requirement type | Amount/Standard | Suitable |
|---|---|---|
| Minimum Paid-up Capital | HK$2,500 million | Non-accredited organizations |
| Minimum quick capital | HK$3 million | All licensed issuers |
| Excess quick funds | ≥ 12 months of operating expenses | All licensed issuers |
| Fully paid-up share capital (approved institution) | Exempt | Recognized institutions (banks) |
The minimum paid-up share capital requirement is HK$25 million (or its equivalent in a freely convertible currency). Authorized institutions are exempt from this requirement.
— Summary of the Hong Kong Monetary Authority, paragraph 3.2.2
First-year cost estimate
License application fee
HK$113,020
Annual license fee
HK$113,020
Minimum Paid-up Capital
HK$25,000,000
Minimum quick capital
HK$3,000,000
Minimum total
HK$28,226,040
Excluding excess quick funds, legal counsel fees, system construction fees, etc.
Comparison Reference
- VATP License (SFC) Annual Fee: HK$150,000
- MiCA EMT Issuer: Minimum Capital EUR 350,000
- Singapore MAS Stablecoin Framework: Minimum Capital SGD 1,000,000
important hint
The fees listed above are only the statutory fees charged by the HKMA. In the actual application process, additional costs such as legal counsel fees, compliance system construction fees, audit fees, and technology development fees must be considered, and the overall investment may be far higher than the amounts mentioned above.
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Continuing compliance obligations
Post-licensing regulatory requirements, reporting obligations, and penalties for violations
Regular report
- Submit periodic reports as required by the HKMA (frequency and format specified by the HKMA).
- Reserve asset report (including asset composition, valuation, and compliance).
- Financial statements and audited annual report
- AML/CFT Compliance Report
Reserve Asset Management
- Maintain 100% full reserves
- Regularly conduct independent audits of reserve assets.
- Valuation and compliance monitoring of reserve assets
- Disclosure of reserve asset information to the public
Information Disclosure
- Maintaining and updating the stablecoin white paper
- Publicly disclose reserve asset information on the website
- Disclosure of independent audit results
- Timely disclosure of major events and changes
Event Notification
- Important events must be promptly notified to the HKMA
- Including: system failures, security incidents, and major losses.
- Changes in management must be approved by the HKMA in advance.
- Prior notice is required for significant changes to the business plan.
Continuous evaluation of suitable candidates
- Directors, senior executives, and controlling shareholders must continue to meet the criteria for suitability.
- Changes to key personnel must be approved by the HKMA in advance.
- Regularly assess the competence of management.
AML/CFT Continuous Compliance
- Continuous execution of CDD and transaction monitoring
- Regularly update AML/CFT risk assessments
- Cooperate with HKMA's on-site and off-site inspections
- Comply with Travel Rule requirements
HKMA Regulatory Power
Inspection rights
Conduct on-site and off-site inspections, and review ledgers and records.
Disciplinary action
Reprimand, fine, suspension or revocation of license
Command authority
Issue instructions requiring the issuer to take or cease specific actions
Information collection
Request any information and documents related to licensed activities.
Major violations and penalties
| Violations | Maximum penalty |
|---|---|
| Unlicensed operation of regulated stablecoin activities | A fine of HK$5,000,000 + imprisonment for 7 years + a daily fine of HK$100,000 |
| Violation of license conditions | A fine of HK$5,000,000 plus two years' imprisonment |
| Distribution to non-licensed offerees | A fine of HK$5,000,000 plus two years' imprisonment |
| Failure to comply with reserve asset requirements | A fine of HK$5,000,000 plus two years' imprisonment |
| Paying interest on stablecoins | A fine of HK$5,000,000 plus two years' imprisonment |
| Providing false or misleading information | A fine of HK$1,000,000 plus two years' imprisonment |
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Licensing Strategy and Practical Advice
Aiying's expert team provides strategic advice based on practical experience.
Company Structure Planning
- Register a dedicated subsidiary in Hong Kong as the license applicant.
- Design a clear equity structure and organizational structure
- Ensure that at least one-third of the directors are independent non-executive directors.
- Key management personnel must be based in Hong Kong.
Compliance system construction
- Establish a comprehensive AML/CFT compliance framework
- Develop comprehensive risk management policies
- Establish reserve asset management and trusteeship arrangements
- Prepare a detailed business continuity and exit plan
Multijurisdictional strategy
- Assess the feasibility of applying for licenses in multiple jurisdictions.
- Leveraging Hong Kong's position as a regional center in the Asia-Pacific region
- Consider the possibility of mutual recognition with the MiCA framework.
- Pay attention to the HKMA's cooperation arrangements with other regulatory agencies.
Technical preparation
- Establish a blockchain infrastructure that complies with regulatory requirements.
- Implement smart contract auditing and security assessment
- Establish an automated system for casting/destruction and redemption.
- Ensure system reliability and disaster recovery capabilities
Practical suggestions
Communicate with HKMA as soon as possible
It is recommended to communicate with the HKMA licensing team 3-6 months before formally submitting the application to understand regulatory expectations and application requirements.
Hire a professional consultant
Engage legal and compliance advisors with experience in virtual asset regulation to assist in preparing application materials and establishing a compliance framework.
Pay attention to transitional arrangements
Issuers of stablecoins issued before the regulations came into effect must submit license applications during the transition period (before October 31, 2025).
Allow enough time
The processing time for a license application depends on the complexity of the case. It is recommended to allow sufficient time to prepare application materials and deal with any possible supplementary requirements.
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Progress of licensed issuers and supervisors
HKMA-approved stablecoin issuers and latest regulatory updates
Licensed stablecoin issuers
Dingdian Financial Technology Co., Ltd.
Anchorpoint Financial Technology Limited
Shareholder composition
Standard Chartered Bank (Hong Kong) holds a 50.5% stake and has formed a joint venture with Hong Kong Telecom and Anxi Group.
Stablecoin products
HKDAP (Hong Kong Dollar Pegged Stablecoin)
Release time
Planned for phased launch starting in the second quarter of 2026.
License effective date
April 10, 2026
One of the first stablecoin issuers to receive a license
Composed of traditional banks, telecommunications companies and Web3 companies
The stablecoin will be pegged to the Hong Kong dollar and will be targeted at retail and institutional users.
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited
Shareholder composition
wholly owned subsidiary of HSBC Group
Stablecoin products
Hong Kong dollar stablecoin (name to be announced)
Release time
Scheduled for release in the second half of 2026
License effective date
April 10, 2026
One of the first stablecoin issuers to receive a license
The first Global Systemically Important Bank (G-SIB) to receive a license
It will seamlessly integrate with PayMe and HSBC Mobile Banking App.
Key Nodes in the Licensing System
- August 1, 2025
The Stablecoin Regulations officially came into effect.
With the official implementation of the licensing system, the HKMA has begun accepting license applications.
- October 31, 2025
The transition period for existing issuers has ended.
Issuers of stablecoins issued before the regulations came into effect must submit their applications before this date.
- January 31, 2026
Temporary license expires
The deadline for submitting applications for temporary licenses for existing issuers has passed.
- April 10, 2026
The first batch of licenses were officially issued.
Dingdian Financial Technology and HSBC were among the first to receive stablecoin issuer licenses.
Latest regulatory developments
April 10, 2026
HKMA issued its first two stablecoin issuer licenses to Dingdian Financial Technology and HSBC.
August 1, 2025
The Stablecoin Regulations have officially come into effect, and the licensing system has begun to be implemented.
July 29, 2025
HKMA releases supervision guidelines SI-1 to SI-5 and AML/CFT guidelines.
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FAQs
Frequently Asked Questions about Hong Kong's Stablecoin Issuer Licensing Regime
01: What types of stablecoins require an HKMA license?
Currently, the HKMA licensing system only applies to specified stablecoins, namely stablecoins that claim to maintain a stable value entirely based on one or more fiat currencies (fiat-referenced stablecoins, FRS). Stablecoins pegged to gold, commodities, or crypto assets, as well as algorithmic stablecoins, are not currently regulated. However, the HKMA reserves the right to expand its regulatory scope in the future.
02: Can a foreign company apply for a license directly?
Offshore companies that are not recognized institutions cannot directly apply for a Hong Kong stablecoin issuer license. They must register a subsidiary in Hong Kong, which will then act as the license applicant. However, recognized institutions (banks) can apply directly even if they are registered outside of Hong Kong.
03: What is the minimum capital requirement for stablecoin issuers?
Stablecoin issuers that are not authorized institutions must maintain a minimum paid-up capital of HK$2,500 million, a minimum of HK$3 million in quick capital, and excess quick capital equal to at least 12 months of operating expenses. Authorized institutions (banks) are exempt from the paid-up capital requirement.
04: How long does it take to apply for a license?
HKMA does not publish a fixed processing timeline. Processing time depends on the complexity of the case, the completeness and quality of the application materials. It is recommended to communicate with HKMA 3-6 months before formally submitting the application and allow sufficient time to prepare the application materials.
05: Can stablecoin issuers pay interest on stablecoins?
No. The Stablecoin Ordinance explicitly prohibits licensed stablecoin issuers from paying or allowing the payment of any interest on their designated stablecoins. Profits generated from reserve asset management belong to the issuer, not the holders.
06: What types of assets can reserve assets invest in?
Eligible reserve assets include: cash (denominated in the reference currency), bank deposits with a maturity of no more than 3 months, government/central bank securities with a maturity of no more than 1 year and a credit rating of AA- or above, tokenized assets that meet HKMA standards, and repurchase agreements secured by eligible securities. Investments in crypto assets, corporate bonds, stocks, commodities, or derivatives are prohibited.
07: Do VATP operators need to apply for an additional stablecoin issuer license?
If a VATP operator only trades or holds stablecoins, they do not need to apply for a stablecoin issuer license (which is governed by the SFC). However, if a VATP operator also issues stablecoins, they must apply for a stablecoin issuer license separately from the HKMA.
08: Can an issuer that has already obtained a license in other jurisdictions operate in Hong Kong?
Direct operation is not permitted. Even if a license has been obtained in another jurisdiction, a license from the HKMA is still required if engaging in regulated stablecoin activities in Hong Kong (including issuing, issuing, or actively marketing Hong Kong dollar-pegged stablecoins in Hong Kong). There are currently no cross-border recognition arrangements.
09: What is the processing time for a redemption request?
Issuers must process redemption requests as quickly as possible, generally within one business day, unless specially approved by the HKMA for an extension. Unreasonable fees or undue obstacles must not be charged.
About Aiying
Aiying (License.aiying.cc) specializes in global traditional finance and Web3-related license application and acquisition consulting services. With teams primarily located in Hong Kong, the UAE, and Europe, and strong relationships with local regulators, Aiying has successfully secured applications and smooth operations for leading and mid-tier crypto and traditional institutions. Team members are qualified in Hong Kong, Europe (Ireland), the UK, the UAE, and other jurisdictions, with a global network ensuring 24/7 professional support. Headquartered in Asia, the team brings together experts in operations, marketing, law, regulatory compliance, and accounting, adhering to clients' business objectives to provide comprehensive and in-depth strategies and solutions.
Authoritative guidance
Based on SFC official guidelines and Aiying's practical experience, we provide the most authoritative application guidance.
Useful Checklist
Detailed self-checklist and document preparation guide to ensure the completeness and accuracy of application materials
Success Stories
100+ successful case experience summary, avoid common pitfalls and improve success rate
global vision
Integrate international best practices to ensure the forward-looking and adaptable compliance system
Aiying's "pre-screening mechanism"
To maximize your success rate, Aiying conducts an internal mock review of your application materials before formal submission. Our expert team acts as a regulator, scrutinizing each document from the most rigorous perspective to identify logical loopholes, data inconsistencies, and compliance gaps in advance.
This mechanism allows us to ensure that the materials submitted to regulators are highly professional, complete, and impeccable, thereby minimizing regulatory inquiry rounds, significantly shortening approval times, and reducing the license rejection rate by 67%.