Hong Kong to Issue Limited Stablecoin Licenses as Major Banks Show Interest

Hong Kong's monetary authority is taking a measured approach to stablecoin regulation, with plans to issue a limited number of licenses in its initial phase. The MOVE comes as 77 institutions, including banking giants Industrial and Commercial Bank of China and Bank of China, have signaled their intent to participate.

The HKMA's phased rollout strategy aims to balance innovation with robust oversight, requiring early participants to demonstrate strict compliance and operational readiness. Market observers suggest this approach could create first-mover advantages for qualified institutions while allowing regulators to adapt rules as the sector evolves.

The legislative groundwork was laid in May when Hong Kong passed its Stablecoin Bill, clearing the path for licensed issuance before year-end. This regulatory clarity may enhance international confidence in Hong Kong-issued stablecoins, potentially positioning the city as a structured hub for digital asset innovation.