Hong Kong to Issue Limited Stablecoin Licenses in 2025

The decision to issue a limited number of stablecoin licenses aims to increase market transparency and foster digital finance innovation. It could impact cross-border payment systems and boost regulatory confidence.

Christopher Hui, Hong Kong’s Secretary for Financial Services, confirms only a few licenses will be issued initially. Key applicants include JD.com, Ant Group, and Standard Chartered. As Liu Qiangdong, Chairman, JD.com , notes, “The company hopes to apply for stablecoin licenses in major currency countries worldwide to cut cross-border payment costs by 90 percent and enable settlements to be completed within 10 seconds.”

Expectations include increased transparency and improved cross-border transactions. Over 40 firms are keen to apply, indicating a strong industry interest in Hong Kong’s stablecoin framework.

The initial licenses are expected to facilitate fiat-referenced stablecoin activities. The regulatory framework may prompt other jurisdictions to adopt similar measures.

Market reactions suggest anticipated stability and regulatory advancements. Firms are preparing applications to adhere to the newly established legislative requirements set out by Hong Kong authorities.

Regulatory frameworks will likely shape the landscape of digital financial services in Hong Kong. Historical trends from Singapore and Switzerland show potential for regulated stablecoin adoption to enhance transparency and compliance.