As crypto-related legislation and adoption continue around the globe, Hong Kong’s Financial Secretary revealed that the regulators will begin issuing stablecoin licenses to qualified issuers in the next few months.
Hong Kong Preparing To Issue Licenses
Speaking to local news outlet China Daily, Hong Kong’s Financial Secretary, Paul Chan Mo-po, affirmed that the Monetary Authority (HKMA) will begin issuing licenses for stablecoin issuers in the coming months following the passage of the related bill a month ago.
On May 21, Hong Kong’s Legislative Council passed the long-awaited Stablecoins Ordinance, requiring any individual or entity seeking to issue a fiat-referenced stablecoin (FRS) in the jurisdiction, or any Hong Kong Dollar (HKD)-pegged token, to obtain a license from the HKMA.
Under the legislation, which will take effect on August 1, licensed entities will be allowed to offer FRS in Hong Kong, while retail investors will be able to access the tokens issued only by these qualified institutions.
The ordinance aims to reinforce regulatory oversight on the digital assets industry, fostering innovation and “responsible, sustainable” development, the Financial Secretary reportedly stated.
According to Daily China, he also revealed that the Hong Kong government is taking a “step-by-step” approach to develop the sector, attempting to ensure balanced growth with regulation as the first step of its phased plan.
Chan said that the second step might involve stablecoins linked to other assets that are “integrated with the real economy,” adding that they must have practical use cases, instead of “being speculative instruments.”
Notably, he considers that “The stablecoin, particularly when it is referenced to fiat currencies, (has) many use case scenarios,” including cross-border payments to enhance efficiency and reduce costs.
Big Companies Eye Stablecoin Adoption
Hong Kong’s Financial Secretary stated that regulators have received several applications from entities seeking to become qualified issuers, adding that the licenses will start being issued in a few months.
According to recent reports, multiple companies have applied for the HKMA license this month, including logistics technology firm Reitar Logtech and the overseas arm of Chinese mainland financial technology giant Ant Group.
Additionally, e-commerce giant JD.com, through its fintech arm JD Coinlink, has been testing HKD-pegged tokens under the regulator’s sandbox program. Per the report, several financial and technology firms have been testing the stablecoin issuer sandbox since July 2024.
JD Coinlink’s CEO, Liu Peng, affirmed that the company expects to obtain the HKMA’s license in early Q4 2025 and launch a JD Stablecoin simultaneously, detailing that the firm ended its second phase of testing last month.
Meanwhile, several tech giants are also exploring similar approaches in the US to optimize cross-border payments and transaction costs. As reported by Bitcoinist, multiple Big Tech companies, including Apple, X, Airbnb, and Google, are in early discussions with various crypto firms to integrate stablecoins.
This move follows the bipartisan push from US lawmakers and the Trump administration to pass two crucial crypto-related bills, the GENIUS Act and Clarity Act, before the early August legislative recess.
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