Competition Intensifies for Hong Kong’s Stablecoin Licenses

The race to secure stablecoin licenses in Hong Kong is reaching a fever pitch as the city prepares to launch its new regulatory framework.

It was reported that more than 40 companies are already preparing their applications ahead of the much anticipated August 1 rollout, with major players like JD.com adn Ant capital also joining the race.

This surge in interest following months of regulatory work to finalise the framework amid growing market interest.

Despite the wave of applicants, industry insiders revealed that the number of licenses being granted is expected to be only in the single digits.

Legal experts note that with the number of licenses relatively scarce, the competition is extremely intense as these companies would have to rush ahead of one another to get their hands on the license.

This scarcity reflects the HKMA’s (Hong Kong Monetary Authorites) commitment to maintaining strict oversight and safeguarding investor interests as the sector evolves.

Hong Kong Taking A Step-By-Step Approach

Earlier this year, the HKMA outlined a comprehensive set of requirements for stablecoin license applicants.

Firms must demonstrate robust risk controls, adhere to stringent anti-money laundering protocols, and provide clear evidence of real-world use cases for their stablecoins.

These measures are designed to ensure that only the most compliant and innovative projects are approved, supporting the city’s reputation as a secure and forward-thinking financial hub.

Financial Secretary Paul Chan has emphasized that Hong Kong’s approach to stablecoin regulation is gradual and methodical.

The initial focus will be building a regulatory foundation and initially focusing on fiat-pegged tokens.

Chan added that the broader goal is to position Hong Kong as a competitive global hub by attracting stablecoin issuers from around the world.

The new licensing regime is part of a wider overhaul of the city’s digital asset policy, which also includes the recently introduced “LEAP” framework.

This initiative aims to foster legal clarity, ecosystem growth, and the development of real-world stablecoin applications—from payments to financial services.

Future pilot programs are expected to test stablecoin use in everyday scenarios, further integrating digital assets into the city’s financial ecosystem.

As part of its initiative, the Hong Kong government is also encouraging collaboration between the public agencies and private industry to build the infrastructure needed for a thriving stablecoin market.