Over 40 Firms Vie for Hong Kong Stablecoin Licenses Amid Tight Regulatory Scrutiny

Hong Kong's upcoming stablecoin licensing regime, launching August 1, has attracted over 40 applicants from major financial and tech players. The Hong Kong Monetary Authority (HKMA) is expected to approve only a handful of licenses, making this one of the most competitive regulatory processes in the city's digital finance history.

Only three firms—including a joint venture between Standard Chartered and Animoca Brands—have gained admission to the HKMA's stablecoin sandbox. The Sandbox allows issuers to refine compliance models and engage with regulators, though participation doesn't guarantee licensing approval.

Most applicants are reportedly China's largest banks, payment processors, and internet companies. The stringent selection process underscores Hong Kong's cautious approach to stablecoin regulation despite strong industry interest.