Quick Take

• Hong Kong Financial Secretary Paul Chan said authorities plan to issue the first batch of stablecoin licenses in the first quarter, the South China Morning Post reported.
• The city’s stablecoin licensing regime, passed in 2025, requires issuers to meet strict reserve, redemption and risk management standards.

Hong Kong is planning to issue its first batch of stablecoin licences in the first quarter of this year, as the city presses ahead with its push to become a crypto hub.

Speaking at the World Economic Forum in Davos, Hong Kong Financial Secretary Paul Chan said that Hong Kong’s crypto asset framework remains “responsible and sustainable,” noting that the authorities plan to grant the first batch of stablecoin issuer licenses in the first quarter, the South China Morning Post reported.

Chan said the city aims to create a comprehensive ecosystem covering stablecoins, exchanges, and tokenized assets, framing digital finance as a key pillar of Hong Kong’s growth strategy amid intensifying global competition.

The stablecoin framework is seen as a cornerstone of that strategy. Hong Kong’s stablecoin licensing regime, passed in 2025, requires fiat-referenced stablecoin issuers to meet strict standards on reserves, redemption, and risk management.

The stablecoin push comes alongside parallel efforts to regulate crypto trading. Hong Kong has already rolled out a licensing regime for crypto trading platforms, under which the Securities and Futures Commission has approved 11 firms so far. Licensed operators include OSL, HashKey, and Bullish, according to the regulator’s website.

Hong Kong’s crypto drive is also unfolding alongside broader tokenization efforts. In November 2025, the Hong Kong Monetary Authority launched a pilot under Project Ensemble to test real-value transactions using tokenized deposits and digital assets, involving major banks and asset managers.

Meanwhile, the authorities are seeking public feedback on further proposals to introduce additional licensing regimes for crypto asset dealing, advisory, and management services.

On Tuesday, the Hong Kong Securities and Futures Professionals Association warned that the proposed changes to virtual asset management rules could deter traditional asset managers from accessing crypto, arguing that stricter licensing thresholds may raise compliance costs and slow institutional adoption.

Sources: The Block