Summary
- The Hong Kong government said it will begin issuing stablecoin licences from the first quarter of this year, accelerating the integration of virtual assets into the regulated financial system.
- Under legislation passed in 2025, issuers of fiat-linked stablecoins must meet stringent requirements, including sufficient reserves, redemption assurance and risk-management frameworks.
- Hong Kong said it is pursuing a comprehensive digital finance ecosystem spanning virtual-asset exchanges as well as tokenised assets, tokenised deposits and digital assets.
The Hong Kong government will begin issuing official licences to stablecoin issuers from the first quarter of this year. The move underscores its intention to make virtual assets a core pillar of its growth strategy and accelerate their integration into the regulated financial system.
According to The Block on the 21st (local time), Hong Kong Financial Secretary Paul Chan said at the World Economic Forum (WEF) in Davos, Switzerland, that “Hong Kong authorities plan to grant the first stablecoin issuer licence within the first quarter.”
Hong Kong aims to build a comprehensive digital finance ecosystem encompassing stablecoins, virtual-asset exchanges and tokenised assets. Chan stressed that “amid intensifying global competition, digital finance will serve as an important pillar in Hong Kong’s medium- to long-term growth strategy.”
The stablecoin licensing regime is based on related legislation passed in 2025. Under the law, issuers of fiat-linked stablecoins must meet stringent requirements, including holding sufficient reserves, ensuring redemption and maintaining risk-management frameworks. Hong Kong authorities view the regime as a key mechanism for bolstering market confidence.
Hong Kong has already implemented a licensing regime for virtual-asset trading platforms. The Securities and Futures Commission (SFC) has so far approved 11 virtual-asset exchanges to operate, with licensed operators including OSL, HashKey and Bullish.
Separately, the Hong Kong Monetary Authority in November 2025 launched a pilot for real-economy transactions using tokenised deposits and digital assets under “Project Ensemble.” It is also considering introducing additional licensing regimes for virtual-asset trading, advisory and asset-management services, and is gathering industry feedback.
