HKMA Targets March Debut for Hong Kong Stablecoin Licences

Hong Kong stablecoin licences are set to debut as early as March, with only a small number of applicants expected to be approved initially, Hong Kong Monetary Authority chief executive Eddie Yue told lawmakers.

Yue said vetting of licence applications is nearing completion, with the HKMA assessing proposed use cases, governance and risk controls, anti-money laundering arrangements, and the reserve assets backing each stablecoin.

He added that licensed issuers must comply with Hong Kong rules when operating cross-border.

The HKMA could also explore mutual recognition with other jurisdictions over time, potentially easing cross-border stablecoin issuance and supervision once standards converge.