Hong Kong to Issue First Stablecoin Licenses in March — 36 Applicants, Only a Few Will Pass
HKMA will issue Hong Kong's first stablecoin licenses in March 2026. Of 36 applicants — including HSBC, Ant Group, and Standard Chartered JV — only a few will be approved.
Hong Kong is weeks away from issuing its first stablecoin licenses. The city's monetary authority is set to grant the initial approvals in March 2026 — but of the 36 companies that formally applied, only a handful will make it through. The selective rollout reflects a regulatory philosophy that prizes stability and risk control over speed of adoption.
A Regulatory Milestone Five Years in the Making
The legal foundation for this moment was laid on August 1, 2025, when Hong Kong's Stablecoins Ordinance came into effect. The law introduced a comprehensive licensing regime for fiat-referenced stablecoins (FRS) — digital tokens designed to maintain a stable value pegged to one or more fiat currencies such as the Hong Kong dollar or US dollar.
Hong Kong became one of the first jurisdictions globally to enact dedicated, comprehensive stablecoin legislation, setting it apart from markets still relying on ad hoc guidance or broad financial services laws.
On February 2, 2026, HKMA chief executive Eddie Yue confirmed that the authority's review process was nearly complete and that the first batch of licenses would be issued in March 2026. The announcement marked the culmination of a multi-year regulatory consultation process that began well before the Ordinance's passage.
36 Applied, Only a Few Will Be Approved
The numbers tell a story of competitive pressure. Before the Ordinance came into force, more than 77 firms had expressed interest in obtaining a stablecoin license. By the formal application deadline of September 30, 2025, that number had narrowed to 36 formal submissions.
The HKMA expects to approve only a "very small number" in the first tranche. Eddie Yue framed this selectivity not as a market restriction, but as a quality signal: the authority intends to demonstrate from the outset that a Hong Kong stablecoin license means something.
The gap between 36 applicants and the anticipated handful of approvals is significant. It suggests that many applicants — whether banks, tech companies, or fintech startups — will not clear the bar on the first attempt, or will be held back pending further review.
Who Is in the Race: Banks, Tech Giants, and Fintech Ventures
While the HKMA has not publicly disclosed the full list of applicants, several have self-identified. The known contenders span the institutional spectrum:
- Anchorpoint Financial — a joint venture between Standard Chartered's Hong Kong arm, gaming and NFT conglomerate Animoca Brands, and telecoms provider HKT. The JV is pursuing a license to issue a HKD-backed stablecoin.
- Ant Group — the Alibaba-affiliated fintech giant.
- Bank of China Hong Kong (BOCHK) — a state-owned Chinese bank with deep roots in the city.
- HSBC — one of the world's largest banks by assets.
- ICBC — Industrial and Commercial Bank of China.
- JD.com — one of China's largest e-commerce groups, with active fintech ambitions.
The combination of global banks, state-owned Chinese lenders, and tech conglomerates signals that stablecoin issuance is no longer a fringe crypto pursuit — it has become a strategic priority for mainstream financial institutions.
How Applications Are Evaluated: The Key Criteria
The HKMA has been explicit about what it is looking for. Applications are assessed on four primary dimensions:
- Reserve management — how the issuer holds and manages the assets backing the stablecoin
- Price stabilization mechanisms — the technical and contractual safeguards ensuring the peg holds
- Anti-money laundering (AML) controls — the issuer's ability to screen users and transactions
- Governance — board composition, internal controls, and accountability structures
On reserves specifically, the Ordinance leaves no room for flexibility: 100% reserve backing is required at all times, using only cash or high-quality liquid assets. Reserves must be fully segregated from the issuer's own assets.
Holders have an absolute right to redeem their stablecoins at par value, and issuers must process redemptions within one business day. This requirement eliminates the "gate" mechanisms — provisions that allow funds to temporarily suspend or limit investor withdrawals — making stablecoins function more like demand deposits than investment vehicles.
The HKMA also holds broad supervisory powers — including the ability to intervene in an issuer's operations to prevent defaults — giving the regulator a credible enforcement backstop.
The Capital Bar: Financial Requirements Applicants Must Clear
Beyond qualitative criteria, applicants must meet hard financial thresholds that effectively screen out undercapitalized entrants.
| Requirement | Amount |
|---|---|
| Minimum paid-up share capital | HK$25 million (~US$3.2 million) |
| Minimum liquid capital | HK$3 million (~US$385,000) |
| Operating expense buffer | 12 months of excess liquid capital above the HK$3M floor |
These numbers may appear modest by global banking standards, but combined with the 100% reserve and governance requirements, they represent a meaningful commitment. A startup issuing a stablecoin would need to maintain substantial reserves, clear capital floors, and sustain a compliance infrastructure — all simultaneously.
For the major banks already in the race — HSBC, BOCHK, ICBC — these thresholds are trivial. For smaller or newer entrants, they represent a genuine operational hurdle.
Geopolitical Backdrop: Hong Kong Moves Ahead Despite Beijing's Reservations
Hong Kong's stablecoin push does not exist in a vacuum. It unfolds against a pointed geopolitical backdrop: mainland China maintains a blanket ban on cryptocurrency activity, while Hong Kong is actively licensing it.
CNBC reported in February 2026 that Hong Kong is proceeding with its stablecoin plans despite Beijing's reservations — a posture that reflects the city's semi-autonomous status under the "one country, two systems" framework.
This divergence is not accidental. Hong Kong's financial regulators have been deliberate in positioning the city as a regulated digital asset hub — a role that cannot be filled by Shanghai, Shenzhen, or Beijing under current mainland policy. The stablecoin licensing regime is, in part, a strategic bet that regulatory clarity will attract capital and talent that might otherwise flow to Singapore or Dubai.
The long-term durability of this divergence — and how Beijing will respond as the licensed stablecoin market matures — remains an open question.
Hong Kong in the Global Stablecoin Regulation Race
Hong Kong is not moving in isolation. Across the globe, major jurisdictions are racing to establish stablecoin frameworks, and the competitive dynamics are real.
The EU's MiCA regulation (Markets in Crypto-Assets) established a licensing regime for e-money tokens and asset-referenced tokens across all 27 member states. Singapore's MAS has its own Payment Services Act framework. Japan amended its Payment Services Act to cover stablecoins. In the United States, the GENIUS Act was signed into law on July 18, 2025 — establishing a federal framework requiring 100% reserve backing for payment stablecoins.
A common thread across all these regimes: full reserve backing, licensed issuers, and guaranteed redemption rights — treating stablecoins as regulated payment instruments rather than speculative crypto assets.
Hong Kong's Ordinance goes a step further in one notable respect: it has extraterritorial reach. Any issuer of an HKD-pegged stablecoin — regardless of where they are incorporated or operating — requires an HKMA license. This prevents regulatory arbitrage by offshore issuers seeking to access the Hong Kong market while avoiding its rules.
Hong Kong's early-mover advantage in Asia — ahead of markets still in legislative drafting stages — could attract issuers that want regulatory certainty now, given that US implementation rules under the GENIUS Act are not due until July 2026.
What Happens Next
The March 2026 license announcements will be closely watched across the industry. The identity of the first approved issuers will signal which type of institution the HKMA trusts most: established banks with proven compliance infrastructure, or tech-native firms with distribution scale.
For the applicants that do not make the first cut, the HKMA process does not necessarily mean rejection — ongoing review and resubmission are possible. But the reputational stakes are high: being publicly associated with a failed application is a risk that sophisticated institutions will want to manage carefully.
For the broader market, Hong Kong's first-mover licenses will create reference points — on reserve structure, governance, and AML — that other Asian jurisdictions are likely to study and adapt.
How the HKMA's initial approvals play out will likely shape regulatory and market expectations across Asia for years to come.
Sources
- hong kongs licensing and regulatory framework stablecoins now effect — davispolk.com
- hong kong will start granting stablecoin issuer licenses in march reuters — coindesk.com
- 36 companies apply for hong kong stablecoin licenses — ledgerinsights.com
- standard chartered led joint venture anchorpoint apply hong kong stablecoin licence — scmp.com
- hkma warns it only plans a few stablecoin licenses plus stringent aml rules — ledgerinsights.com
- hong kong implements new regulatory framework for stablecoins — sidley.com
- hong kong stablecoin licenses china crypto ban usdt usdc cny cnh rmb usd fiat currency.html — cnbc.com
- global stablecoin regulations 2026 — bvnk.com
