- Hong Kong will issue fewer than 10 stablecoin licenses by August 2025.
- Over 40 international companies, including JD.com and Ant Group, have applied.
- Licensing focuses on fiat-pegged stablecoins with strict AML and risk controls.
Applications of the new regime of stablecoin licensing in Hong Kong are rapidly escalating, with more than 40 foreign firms vying to obtain one of a limited set of licenses likely to be granted by August 2025.
Applications will open on August 1 by the Hong Kong Monetary Authority (HKMA) with the objective of making the city a hub of stablecoin issuance and blockchain finance.
Fierce Competition for Limited Licenses
Over 40 companies, including giants such as JD.com, Ant Group, Standard Chartered, and Circle Innovation, have applied or are about to apply.
Source –X
Although interest is high, industry experts anticipate that the regulator will approve fewer than 10 licenses this year, indicating a cautious approach to maintain strict oversight and protect investors.
The HKMA has developed stringent conditions of approval that prioritize strong risk management, adherence to the requirements of anti-money laundering (AML) laws, and demonstration of viable real-world applications of stablecoins.
The licensing regime primarily targets fiat-pegged stablecoins, especially those pegged to the Hong Kong dollar (HKD) and the offshore Chinese yuan (CNH).
Financial Secretary Paul Chan mentioned that the government is taking a gradual approach, beginning with creating a regulatory framework to attract international stablecoin issuers.
He pointed out that the purpose is to increase the efficiency of cross-border payments and lower the cost of transactions, particularly in the financial infrastructure of less developed markets.
Regulatory Framework and Market Impact
Hong Kong included the new licensing regime of stablecoins as part of its broader Digital Asset policy, which it began rolling out under the new “LEAP” framework announced in June 2025.
This structure not only regulates the issuance of stablecoins, but also allows pilot programs to experiment with the use of stablecoins in payments and financial services.
HKMA chief Eddie Yue warned the public to carefully avoid the hype around stablecoins, emphasizing that these are payment instruments, not investment products.He called on the people to approach a stablecoin objectively since they do not appreciate its value automatically.
Licensing is a very competitive process that requires thorough knowledge in finance, technology, and cryptocurrency. The blockchain talent is actively sought by the applicants to comply with the regulatory and technical standards.
There are not too many licenses, and a “gold rush” is likely to happen among companies that want to enter the stablecoin market.
Hong Kong’s stance goes against the grain of mainland China’s ban on cryptocurrency trade and mining. Beijing believes in the hardline approach, whereas Hong Kong accepts regulated crypto enterprises and provides a licensing system to crypto exchanges and currently stablecoin issuing firms. This oversight transparency will facilitate foreign companies and innovation in digital finance.
Offshore Yuan-Pegged Stablecoins and Strategic Partnerships
Offshore yuan-pegged stablecoins have caused much interest. JD.com and Ant Group, among other Chinese firms, are seeking approval for such stablecoins, which may lead to the internationalization of the renminbi.
HKMA has suggested that foreign currency-based stablecoins are subject to the coordination of the concerned foreign regulators to ensure that the exchange rate risk and the bigger financial impact are taken into account.
An interesting growth is the alliance of Goldstream Investment and AnchorX, a stablecoin issuer licensed in Hong Kong to issue an offshore renminbi-pegged stablecoin in Kazakhstan.
The partners hope that this alliance will cut their expenditure and enhance the circulation of offshore yuan beyond conventional payment systems.
In the wake of this announcement, the stock price of Goldstream had jumped more than 500 percent as it remains optimistic concerning the position of Hong Kong in the stablecoin environment and the cross-border adoption of yuan.
