Hong Kong to Issue Few Stablecoin Licenses Despite 77 Applicants

Highlights:

• Hong Kong’s financial regulator will issue only a few stablecoin licenses initially, despite strong interest.
• Prominent financial institutions, including HSBC and ICBC, have applied for Hong Kong stablecoin licenses.
• Hong Kong’s careful rollout seeks to safeguard users and strengthen its digital asset credibility globally.

The Hong Kong Monetary Authority (HKMA) has begun the process of issuing stablecoin licenses but is taking a cautious, gradual approach. Even though 77 institutions have shown interest by the end of last month, the regulator will only give a few licenses at first. This careful approach is meant to keep control while slowly testing how stablecoins work in Hong Kong.

According to Hong Kong Economic Journal, the HKMA plans to issue only a few stablecoin licenses in the first phase. As of the end of last month, 77 institutions had expressed interest. ICBC (Asia) has joined BOC Hong Kong in signaling intent to apply, while HSBC has also…

— Wu Blockchain (@WuBlockchain) September 8, 2025

Banks and Tech Firms Show High Demand for Hong Kong Stablecoin Licenses

According to local reports, there is strong interest from banks, e-commerce firms, technology companies, Web3 startups, payment providers, and asset managers in applying for stablecoin licenses. Among the prominent applicants is the Industrial and Commercial Bank of China, recognized as the world’s largest bank by total assets, which has submitted its application through its Hong Kong-based subsidiary, ICBC (Asia). This marks the second major Chinese bank to enter the process, following Bank of China (Hong Kong).

HSBC is also interested, and experts think Standard Chartered and BOC Hong Kong could be among the first to get licenses. These approvals would help Hong Kong build its reputation as a safe and global center for digital assets. Formal applications are expected soon, but no one knows how many licenses will actually be approved. 

Experts think the limited number could push companies to wait, team up with others, or look for different ways to meet the rules. The HKMA’s slow and careful rollout is drawing global attention. Its early choices on things like transparency, who can apply, and whether retail users get access may shape how other regulators build their own stablecoin rules. 

Hong Kong Takes Tough Approach to Stablecoin Licensing

Lawmakers support HKMA’s tough rules. Ng Kit-chong, a Hong Kong Legislative Council member, stated that the authorities designed the regulations to be stringent. He added that they might grant only a limited number of licenses, potentially just one, as early as next year. He also noted that lawmakers are drafting new rules for offline OTC crypto transactions, aiming to introduce them in 2025.

The HKMA advised applicants to submit complete applications by the end of September if they are serious. However, it cautioned that expressing interest or submitting an application does not ensure approval. Authorities also warned the public to avoid trusting advertisements or promotions for stablecoins without a license, since they lack legal authorization.

Alert: Please be cautious about crypto firms which may have misused the word “bank”. Certain overseas crypto firms, in recent events in HK, were reported to have made the representation that the firm was a “bank” or offered card product as “bank card” on the firm’s website. pic.twitter.com/Va5ebhhbTI

— HKMA 香港金融管理局 (@hkmagovhk) November 15, 2024

Cora Ang, legal head at Amina Group, explained that the new framework is designed to filter out firms that can’t meet strict rules, show real use cases, or prove financial stability. She stressed that after collapses like FTX, regulators are taking no chances and want to avoid any impression that their system is weak, since that would damage their reputation. When FTX collapsed due to fraud and money laundering, it left a lasting impact on regulators, and HKMA wants to make sure nothing like that happens again.