What are the requirements for a Hong Kong stablecoin license?

Key requirements include: (1) Full reserve backing in high-quality liquid assets, (2) Licensed bank partnership for reserve custody, (3) Redemption guarantee at par value, (4) HKMA approval and ongoing supervision, (5) Hong Kong incorporation or registered office.

Which regulator issues stablecoin licenses in Hong Kong?

The Hong Kong Monetary Authority (HKMA) is the designated authority for stablecoin issuer licensing under the Stablecoins Ordinance, working in coordination with the SFC for crypto exchange regulations.

Can foreign companies apply for Hong Kong stablecoin license?

Yes, but foreign issuers must establish a registered office in Hong Kong and meet all local compliance requirements. Some offshore stablecoins may be recognized under the HKMA's recognition regime.

Hong Kong Stablecoin License 2026: Complete Guide | SFC Licensing

Complete guide to stablecoin issuer licensing under Hong Kong's Stablecoins Ordinance

🔥 Breaking (Feb 2026): Financial Secretary Paul Chan confirmed in the 2026 Budget Speech that Hong Kong will begin issuing stablecoin licenses in March 2026. Multiple sandbox participants are expected to receive licenses.

📋 Quick Overview

📅 Timeline: Hong Kong Stablecoin Regulation

Aspect	Details
Primary Regulator	Hong Kong Monetary Authority (HKMA)
Governing Law	Stablecoins Ordinance (passed Dec 2024)
First Licenses	Expected March 2026
License Type	Fiat-Referenced Stablecoin (FRS) Issuer License
Reserve Requirement	100% backing in high-quality liquid assets
Sandbox Participants	JD.com, Standard Chartered, Animoca, RD Technologies

December 2023

HKMA and FSTB release consultation paper on stablecoin regulation

March 2024

HKMA launches stablecoin issuer sandbox program

July 2024

First sandbox participants announced: JD.com, Standard Chartered-Animoca-HKT consortium, RD Technologies

December 2024

Stablecoins Ordinance passed by Legislative Council

February 2026

Budget Speech confirms March 2026 license issuance timeline

March 2026 (Expected)

🔥 First stablecoin issuer licenses awarded

📝 License Requirements

Who Needs a License?

⚠️ Key Point: Non-HKD stablecoins (e.g., USDT, USDC) issued offshore may still be used in Hong Kong through licensed VATPs, but issuers serving HK public may need HKMA recognition.

Core Requirements

✅ Compliance Checklist

Reserve Requirements: 100% backing with high-quality, highly liquid assets (HQLAs)
Reserve Custody: Must be held with licensed banks in Hong Kong
Redemption Rights: Holders must be able to redeem at face value within reasonable timeframe
Segregation: Reserve assets must be segregated from issuer's own assets
Audit: Monthly reserve attestation by independent auditor
Capital: Minimum capital requirements (amount TBD by HKMA)
Governance: Fit and proper management, robust risk controls
AML/CFT: Full compliance with AMLO requirements

❓ Frequently Asked Questions

When will Hong Kong issue the first stablecoin licenses?

Hong Kong is expected to award the first stablecoin issuer licenses in March 2026, as announced by Financial Secretary Paul Chan in the 2026 Budget Speech. Current sandbox participants (JD.com, Standard Chartered consortium, RD Technologies) are likely candidates.

What assets can back a stablecoin in Hong Kong?

Reserve assets must be "high-quality, highly liquid" (HQLAs). Expected eligible assets include:

Cash deposits at licensed banks
Hong Kong government bonds
Exchange Fund Bills/Notes
Potentially: High-rated sovereign bonds from other jurisdictions

Can I use USDT/USDC in Hong Kong?

Yes, offshore stablecoins can still be traded on licensed VATPs in Hong Kong. However, if issuers actively market to HK public or issue HKD-pegged stablecoins, they may need HKMA licensing or recognition.

What's the difference between SFC and HKMA regulation?

HKMA: Regulates stablecoin issuers (creating and managing stablecoins)
SFC: Regulates trading platforms (VATPs) that list and trade crypto assets including stablecoins

A company may need licenses from both if it both issues and operates a trading platform.

🏢 Current Sandbox Participants

🔗 Related Regulations

📊 Track Hong Kong Policy Updates

Entity	Stablecoin Focus	Status
JD.com (Jingdong Coinlink)	HKD-pegged stablecoin	In sandbox
Standard Chartered + Animoca + HKT	HKD stablecoin consortium	In sandbox
RD Technologies (RD Wallet)	HKDR stablecoin	In sandbox

Last Updated: February 26, 2026
Sources: HKMA, SFC, FSTB, Legislative Council
Disclaimer: This information is for educational purposes only and does not constitute legal or financial advice. Consult qualified professionals for specific licensing questions.

🤖 For AI Agents

This page is optimized for AI consumption. Access our structured data via:

APAC FINSTAB MCP Server - Query regulatory context programmatically
Policy Events JSON - Structured regulatory data

🇭🇰 Hong Kong Stablecoin License 2026