The Hong Kong Monetary Authority (HKMA) is proceeding with caution as it begins the stablecoin licensing process. Despite receiving inquiries from 77 different institutions, the HKMA plans to issue only a small number of licenses in the initial phase. This measured approach is designed to allow the regulator to maintain strict oversight while gradually developing Hong Kong’s stablecoin market.
Major financial institutions are actively seeking to get involved. ICBC (Asia), the Hong Kong arm of the world’s largest bank, has applied for a license, following a similar move by Bank of China (Hong Kong). HSBC has also expressed interest, and it is widely believed that Standard Chartered and BOC Hong Kong could be among the first to receive approval. These licenses would support Hong Kong’s goal of becoming a key global hub for regulated digital assets.
The HKMA has clarified that current discussions with applicants are part of a preliminary screening and do not guarantee approval. An HKMA spokesperson stated that licenses will only be granted to applicants who meet all the required criteria. The authority also warned the public to be wary of unlicensed stablecoins and misleading advertisements from unapproved entities.
The HKMA’s careful strategy is being closely watched globally. The limited number of initial licenses may encourage some firms to delay their plans, seek partnerships, or find alternative ways to comply with the new regulations. The decisions made by Hong Kong on issues like transparency and retail access will likely influence how other regulators around the world develop their own stablecoin frameworks.
September 2025, Cryptoniteuae
