The Hong Kong Monetary Authority (HKMA), the city's de facto central bank, told a Chinese financial outlet it has not ruled out issuing additional stablecoin licences after greenlighting just two in April. The pace has disappointed some market players who hailed the Stablecoins Ordinance, which took effect on 1 August 2025 and established a licensing regime for stablecoin issuers.
Hong Kong Regulator Open but Cautious on More Stablecoin Licences
7 August 2026 - 06:01 UTC
Open and cautious
HKMA was quoted by Shanghai-based Cailianshe on 6 Aug as saying it maintained "an open yet cautious stance" towards approving more stablecoin licences.
The Chinese outlet said there were market rumours a second batch of approvals would be granted around the 1 Oct Chinese National Day holiday. The HKMA received 36 formal applications by the 30 Sept 2025 deadline for stablecoin issuer licences. It did not respond to Sandmark's questions.
Stablecoins are digital assets pegged to another asset – usually a fiat currency such as the US dollar – to maintain a stable price. They are widely used for digital payments.
Approvals to big banks
After missing a publicly declared timeline of March for the first licences, the HKMA on 10 Apr granted its first issuer licences for HKD-pegged stablecoins to HSBC and Anchorpoint Financial Limited – a joint venture of Standard Chartered, Animoca Brands and Hong Kong Telecommunications.
HSBC plans to integrate its stablecoin into retail channels such as PayMe and its mobile banking app for everyday transactions. Anchorpoint's HKDAP will reach users through authorized distributors under a business-to-business-to-consumer (B2B2C) model, targeting cross-border payments and the settlement of tokenized assets.
Top officials from the HKMA, including Chief Executive Eddie Yue and Deputy Chief Executive Darryl Chan, have repeatedly stated that only a handful of stablecoin issuer licences would be granted initially to ensure a rigorous and prudent regulatory approach.
Sidelining the startups
One Hong Kong industry expert, who declined to be named citing the sensitivity of ongoing licence discussions, told Sandmark that it was clear the regulator is selecting issuers it trusts and who are trusted by Beijing. "They don't want a startup mentality; they want it to work for institutions. This isn't designed for retail use cases. I don't think they'll issue more licences in the short-term."
While Hong Kong and mainland China operate under a "One Country, Two Systems" policy, the HKMA's cautious licensing framework aligns with Beijing's ongoing cryptocurrency restrictions and its push to prioritize the state-backed e-CNY over private alternatives.
Non-authorized stablecoins
Many of the remaining applicants may be disappointed. Hong Kong's April approvals to HSBC and Standard Chartered (via Anchorpoint) – two of the three commercial banks authorized to issue Hong Kong dollar banknotes – followed Mainland China's February 2026 circular No. 42, which explicitly banned unauthorized yuan stablecoins and the tokenization of assets. Applicants still waiting on a decision from the HKMA may need to prove they can operate within, not around, that constraint.
