Hong Kong eyes stablecoin licenses this year, but approvals likely to remain in ‘single digits’: report

Hong Kong may issue stablecoin licenses this year, but the number is likely to remain "in the single digits," the region's top financial official said in a local media interview.

In an interview with local newspaper Ming Pao published Monday, Christopher Hui, Secretary for Financial Services and the Treasury, said that with the stablecoin licensing regime set to take effect in August, the authorities aim to issue licenses within this year.

"We hope that [stablecoins] will focus on addressing the difficulties and pain points in the real economy, such as cross-border payments, especially when involving local currencies with higher risks, or when the local financial system is not so well-developed, creating certain challenges for cross-border payments," said Hui in the report. 

"However, if there are stablecoins based on fiat currencies serving as effective payment tools, they can facilitate cross-border transactions and reduce transaction costs," he added.

While the upcoming licensing regime and earlier sandbox programs were initially designed for stablecoins pegged to the Hong Kong dollar, the prospect of offshore yuan-pegged stablecoins has become a hot topic in the local crypto industry. 

Chinese tech giants JD.com and Ant Group, for example, are lobbying China's central bank to approve offshore yuan-based stablecoins as the global stablecoin race intensifies, according to Reuters .

Hui told Ming Pao that if a potential stablecoin involves a currency from another jurisdiction, "we must engage in discussions with the relevant authorities."

The current regulatory framework generally permits stablecoin issuance when backed by legal tender without explicitly restricting which currencies can serve as backing assets, Hui said. However, when currencies from other jurisdictions are involved, regulators must carefully assess the potential impact on exchange rates and consider broader risk factors, according to Hui.

Hong Kong's push for a stablecoin licensing framework coincides with ongoing regulatory developments in the U.S. Last month, the U.S. Senate passed the landmark GENIUS stablecoin bill, advancing it to the House, with President Donald Trump urging Congress to pass the legislation.

China's central bank governor, Pan Gongsheng, also  acknowledged that stablecoins and central bank digital currencies are reshaping the global payment infrastructure. 

While Beijing upholds its ban on crypto trading and mining across mainland China, Hong Kong has taken the opposite stance by welcoming crypto businesses through an established licensing framework for crypto exchanges. The Hong Kong Monetary Authority, the region's de facto central bank, launched a  stablecoin sandbox last year, drawing participation from prominent firms, including Standard Chartered Bank, Animoca Brands, Hong Kong Telecommunications, JD Coinlink, and RD InnoTech.