The Hong Kong Monetary Authority (HKMA) has laid out a set of benchmark qualifications for firms aiming to issue HKD-pegged stablecoins, establishing a clear threshold for entry into the market.
According to a report from Chinese financial outlet Hexun, HKMA Chief Executive Eddie Yue outlined several mandatory requirements that applicants must meet to obtain a stablecoin issuer license. Yue clarified that participation in the government’s sandbox program is neither a prerequisite nor a guarantee for obtaining a license.
The initial rollout of stablecoin licenses will prioritize use cases in cross-border trade and Web3 applications. “In the face of the current environment, we need to remain resilient. Hong Kong has strong foreign exchange reserves and high liquidity as a buffer,” said Yue.
To date, more than 40 entities have joined Hong Kong’s stablecoin sandbox program, including prominent firms like JD CoinChain Technology, Yuanbi Innovation Technology, and a consortium led by Ant Group, Standard Chartered, and Hong Kong Telecom through Animoca Brands. These participants have been testing their issuance frameworks and business models in a regulated environment.
Yue emphasized that only a limited number of licenses will be granted initially. Applicants must submit detailed, actionable business plans, backed by clear real-world use cases. Reserve management will also be a key area of evaluation—license holders are required to maintain a minimum capital reserve of HK$25 million and prove operational sustainability.
Notably, authorized institutions such as licensed banks may be exempt from this capital requirement.
In addition to financial robustness, firms must demonstrate strong compliance and security frameworks, including effective anti-money laundering (AML) systems.
This regulatory update follows a previous announcement by the Hong Kong Financial Secretary confirming that the first batch of licenses will be issued in the coming months. Under the new Stablecoins Ordinance—set to take effect on August 1—entities must obtain a license from the HKMA before launching or operating HKD-backed stablecoins.
