Hong Kong is moving closer to its first licensed stablecoin issuers. Today, Eddie Yue, head of the Hong Kong Monetary Authority, said 36 institutions have applied for stablecoin licences. The regulator is now reviewing these applications. Officials hope to make decisions soon. The target is to issue the first licences in March.
This step follows the Stablecoin Ordinance which started last year. The law created a clear licensing system for stablecoin issuers. Its goal is to protect users, reduce risks and support innovation. Hong Kong regulators wants to build a strong digital finance sector. While keeping tight control over risks.
HKMA Demands More Details
However, the process is not simple. Eddie Yue said many applications only included basic information. Because of that, the HKMA asked some firms to send more data. It wants to see how stablecoins will be used in real life. It also wants to check risk controls and reserve assets.
据大公文汇，金管局总裁余伟文今日表示，首轮共收到 36 家机构提交的稳定币牌照申请，目前正持续评估这些申请，希望能够尽快作出决定，争取在 3 月发出首批牌照。…
— 吴说区块链 (@wublockchain12) February 2, 2026
For example, the regulator needs to know what backs each stablecoin. It also needs to see how firms manage money flows and user funds. In addition, it wants proof that firms can handle stress during market shocks. These checks aim to avoid past problems seen in other markets. Yue stressed that the first batch of licences will be very small. The HKMA plans to move slowly and carefully. It prefers safety over speed. This means not all 36 firms will get approval in the first round.
A New Chapter for Hong Kong Crypto
This move signals a major shift for Hong Kong. The city wants to become a trusted hub for digital assets. Stablecoins play a key role in that plan. They link crypto with real money. They also support trading, payments and cross border transfers.
With licences in place, stablecoin issuers will work under clear rules. That could attract banks, fintech firms and global companies. It could also boost confidence among users. Many investors now look for regulated options instead of risky offshore products. At the same time, strict rules may limit fast growth. Smaller firms may struggle to meet capital and reserve demands. Still, officials believe this trade off is worth it. They want stablecoins to grow in a controlled way.
What Comes Next
In the coming weeks, applicants must answer the HKMA’s questions. If all key points are clear, the regulator will choose a few winners. Those firms will become Hong Kong’s first licensed stablecoin issuers. Market players expect strong competition. Some believe banks and large payment firms will lead. Others think crypto native firms could also qualify. Either way, the number will stay limited at first.
Overall, Hong Kong regulators’ approach shows caution and ambition at the same time. It wants to lead in digital finance but without losing control. If the March rollout goes well, more licences could follow later in the year. That could shape how stablecoins operate across Asia and beyond.
