Stablecoins in Hong Kong: A Regulation-First Start
What is a stablecoin?
A stablecoin is a digital token designed to keep a steady value, usually by reference to a currency such as the Hong Kong dollar or the US dollar, and backed by reserve assets. Stablecoins are used for payments and settlement, and as a bridge between traditional money and blockchain-based markets.
How Hong Kong regulates them
The Stablecoins Ordinance (Cap. 656) took effect on 1 August 2025. Since then, issuing fiat-referenced stablecoins in Hong Kong has been a regulated activity that requires a licence from the Hong Kong Monetary Authority (HKMA) [1]. The HKMA has issued a Guideline on Supervision of Stablecoin Issuers and a separate anti-money laundering guideline setting out what it expects of licensees [1].
The first licences
The HKMA received 36 applications. On 10 April 2026 it granted the first two licences, to Anchorpoint Financial Limited, a joint venture of Standard Chartered Bank (Hong Kong), HKT and Animoca Brands, and to The Hongkong and Shanghai Banking Corporation Limited (HSBC) [2][3]. The HKMA said that if more licences are granted in future, "the overall number will remain very limited" [3].
Products are now reaching users. In October 2026 HSBC launched RedCoin, a Hong Kong dollar stablecoin available through its PayMe app [4].
Our view
The early licences show a clear pattern: so far, stablecoins in Hong Kong are being issued by banks and bank-led groups rather than by crypto-native firms. This reflects Hong Kong's broader approach to digital assets, which puts regulation first and growth second. Issuers with established risk management, reserve controls and compliance teams have moved ahead first.
For the wider market, this is not necessarily a barrier. A carefully regulated base can build trust among users, merchants and institutions, and may support wider use over time. It does mean that firms looking at Hong Kong's crypto sector should expect licensing, governance and anti-money laundering controls to be central from the start.
What this means for businesses
Businesses that want to use Hong Kong dollar stablecoins for payments or settlement can look to licensed issuers listed on the HKMA register [2].
Exchanges, payment firms, trust companies and other service providers that deal with stablecoins should review whether their activities fall within a licensing regime.
Firms planning to enter Hong Kong's digital-asset market should plan for a regulation-first environment and build compliance into their structure early.
KTC advises clients on Hong Kong licensing, crypto corporate structuring and compliance. To discuss your plans, request a proposal.
This article is for general information only and does not constitute legal or professional advice.
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