Hong Kong to Limit Stablecoin Licenses After Two Grants

The Hong Kong Monetary Authority has granted two stablecoin issuer licenses and warned that future approvals will be very limited, saying it will closely monitor the first two launches before considering additional licenses.

HKMA Chief Executive Eddie Yue noted on May 5 that the authority will take a steady approach and compare the actual risks posed by the initial issuers with expectations before approving more applications. Hong Kong’s Stablecoins Ordinance, which created the licensing framework, took effect in August 2025.

The regulator received 36 applications last year but indicated any expansion of the licensed cohort will be small. Officials said decisions on further licenses will be guided by operational evidence gathered from the first two tokens after they go live.

The first two licenses were issued to Anchorpoint Financial and the Hongkong and Shanghai Banking Corporation. HSBC plans to introduce a Hong Kong dollar–pegged stablecoin later this year and integrate it into its Hong Kong mobile banking app and PayMe, the bank’s payments service that has more than 3.3 million users. Anchorpoint intends to roll out HKDAP (HKD At Par) in phases beginning in the second quarter of 2026 and make it available to the public through selected authorized distributors.

HKMA Deputy Chief Executive Daryl Chan said licensees must complete substantial preparatory work before launch. Requirements include system checks, independent risk-management reviews, third-party verification and confirmation that staffing levels meet regulatory expectations. Any cross-border use will need approval from relevant foreign regulators.

Both licensees have said their stablecoins will be backed by high-quality liquid assets held separately from the issuer’s other funds. The HKMA will continue to monitor operations after launch and inspect whether actual risk profiles align with those assessed during the licensing review.

Officials noted there is no single international standard that Hong Kong can adopt directly for stablecoins. Yue added the authority will exchange experience with the Financial Stability Board and other international bodies and refine licensing rules and supervisory arrangements as it collects operational evidence.

HKMA officials emphasized that future licensing will be cautious and incremental, and that new applicants must demonstrate robust systems and any necessary cross-border permissions before tokens enter the market.