Overview

• Hong Kong’s Stablecoin Ordinance came into force on August 1, placing issuers under the HKMA’s banking-style framework with strict rules on reserve backing, redemption at par and segregation of client funds.
• The HKMA will grant only a handful of licences in the first batch, requiring firms to signal interest by August 31 and submit full applications by September 30 for approvals expected in early 2026.
• Issuers must meet a minimum HK$25 million paid-up capital threshold and comply with anti-money laundering measures, operator fit-and-proper tests and regular disclosure obligations.
• Major players such as JD.com, Standard Chartered and Ant International have expressed interest in applying, while the high capital bar may deter smaller innovators.
• Licensed issuers will be required to block VPN access in prohibited jurisdictions and refrain from public marketing until formal approval in line with the HKMA’s consumer-protection mandate.