Hong Kong’s Stablecoin Licensing Frenzy: 36 Firms Rush to Apply Before 2026 Launch

Hong Kong's stablecoin licensing race is on—and the starting gun hasn't even fired yet.

The Rush for Regulation

With the formal launch of its licensing regime still a year away, Hong Kong's financial authorities are already fielding applications from 36 different firms. That's 36 separate entities jockeying for position in what's shaping up to be Asia's most significant regulatory sandbox for digital money. The message is clear: the market isn't waiting for permission to build.

Building the Framework

The city is methodically constructing a regulatory playbook from the ground up. Think capital requirements, reserve audits, and redemption guarantees—the whole nine yards of traditional finance, but applied to blockchain rails. It's a deliberate attempt to lure legitimacy and institutional capital, offering a stark contrast to the regulatory gray areas elsewhere. One cynical observer might note it's the same old game of licensing and gatekeeping, just with a digital coat of paint.

The 2026 Countdown

All this groundwork points toward a single deadline: 2026. That's when the provisional approvals are expected to crystallize into full licenses, transforming applicants into official operators. The pre-launch scramble suggests a sector betting big that regulatory clarity, not anonymity, will be the killer app for mass adoption.

Hong Kong isn't just opening a door for stablecoins; it's building a fortified gate with a welcome mat for the world's capital. Whether this becomes a global blueprint or a very expensive compliance experiment depends entirely on who walks through.

TLDR

• Hong Kong regulators received 36 stablecoin license applications by September 2025.
• The first batch of stablecoin approvals is expected in early 2026.
• Reserve backing and AML controls rank as top approval requirements.
• A separate virtual asset custody licensing framework is planned for 2026.

Hong Kong regulators have confirmed that 36 entities submitted applications for stablecoin licenses before the September 2025 deadline. This development follows the implementation of the Stablecoin Ordinance in August, which requires all stablecoin issuers to obtain regulatory approval before offering products to the public.

Financial Services and the Treasury Secretary Christopher Hui stated that the first set of licenses could be approved by early 2026. Authorities plan to issue a limited number of permits initially to evaluate the effectiveness of the system under live market conditions. This phased approach resembles Hong Kong’s earlier rollout of VIRTUAL asset trading platform licenses, where only select exchanges gained early approval.

The strong response indicates rising institutional interest in regulated stablecoin activity. However, Hong Kong regulators have emphasized that approvals will depend on strict compliance with reserve, governance, and operational standards.

Focus on Reserve Management, Price Stability, and AML Compliance

Regulators have outlined clear criteria for reviewing applications. Priority will go to issuers demonstrating strong reserve management, mechanisms for price stability, and effective anti-money laundering (AML) procedures. Officials aim to ensure that stablecoins remain fully backed and operate under transparent governance structures.

Christopher Hui noted that the goal is to reduce financial risk and avoid scenarios where users face redemption delays or price fluctuations during market stress. Stablecoin issuers must keep reserves thoroughly segregated and verifiable to gain approval.

The emphasis on AML measures also responds to broader concerns. Authorities in China recently warned that unregulated stablecoins could facilitate illegal transactions. Hong Kong’s framework seeks to prevent such misuse without slowing adoption.

By setting firm compliance expectations, regulators hope to reduce ambiguity and improve trust across the digital asset ecosystem. This approach positions Hong Kong as a jurisdiction prepared to support growth while maintaining investor protection.

Custody Licensing Framework Set for 2026 Legislative Review

Alongside the stablecoin licensing process, Hong Kong is preparing a separate regulatory regime for virtual asset custody services. The government plans to submit this proposal to the Legislative Council in 2026. It will apply to banks, asset managers, and other institutions managing digital assets on behalf of clients.

The custody framework will require licensed providers to implement asset segregation, cybersecurity protections, and operational resilience. This additional LAYER aims to safeguard client assets and support the broader stablecoin ecosystem.

Once approved, the custody regime will help establish Hong Kong as one of Asia’s most regulated and structured environments for digital asset operations. With both stablecoin issuance and asset custody covered, Hong Kong expects to strengthen its position as a regional center for compliant Web3 innovation.