HKMA to issue limited stablecoin licenses by early 2026, enforcing strict requirements to ensure safety, transparency, and innovation.
The Hong Kong Monetary Authority (HKMA) has confirmed that it will issue only a few stablecoin licenses in the first phase of its new regulatory framework. This cautious approach is intended to ensure that only the most qualified institutions are approved.
HKMA Eyes Early 2026 for First Stablecoin License Approvals
According to the Hong Kong Economic Journal, as of the end of last month, 77 institutions had registered interest in applying. Despite the large number of potential applicants, HKMA will initially grant licenses to only a select few.
So far, some large financial institutions have come forward. Industrial and Commercial Bank of China (Asia), the Hong Kong branch of the world’s biggest bank in terms of assets, has also officially expressed interest. This follows a similar move by Bank of China (Hong Kong), another major state-owned bank.
In addition, HSBC has also expressed interest in the licensing process. Notably, industry insiders believe that Standard Chartered and the Bank of China (Hong Kong) are strong contenders to be among the first to receive licenses.
The new stablecoin licensing regime officially took effect on August 1, 2025. However, approvals will not be granted immediately. The deadline for the first round of applications is September 30, with the earliest licenses expected to be issued in early 2026.
This delay gives regulators time to thoroughly review each application. The HKMA wants to ensure that all licensees conform to strict regulatory standards before entering the market.
Related Reading: Hong Kong Regulator Warns of Stablecoin Scam Risks | Live Bitcoin News
Stablecoin Licenses Require Full Reserves, AML, and Real Use Cases
For approval, applicants must satisfy several tough requirements. First, stablecoins must be fully backed by high-quality, liquid reserve assets. This is to ensure that the value of the stablecoin remains secure, even in times of market stress.
Second, applicants should have robust anti-money laundering (AML) and counter-terrorism financing (CFT) controls in place. These rules are designed to prevent illegal activity within the crypto ecosystem.
Third, each applicant must prove that their stablecoin has a viable use case. This means the coin must have a clear use in the financial system or in consumer payments. Transparency in operations and reserve management is also critical.
Although only a few licenses will be issued initially, this cautious approach is considered a step towards responsible innovation in the crypto space. The HKMA is trying to balance two goals. It wants to support financial technology and protect users and the financial system.
By limiting the number of early licenses, HKMA can better monitor the market and adjust its policies if necessary. At the same time, the interest from 77 institutions indicates that there is high demand for regulated stablecoin operations in Hong Kong.
In conclusion, the HKMA’s plan to issue stablecoin licenses on a careful and selective basis is a signal of serious commitment to building a safe and trusted environment for digital assets. As the first approvals are expected in early 2026, all eyes will be on which major institutions make the cut.
