Hong Kong misses March start for HKD stablecoin licensing

Hong Kong failed to meet its March target for issuing Hong Kong dollar stablecoin licenses. As of April 1, 2026, the Hong Kong Monetary Authority has not approved any issuers and has not provided a new timetable.

Officials had signaled earlier this year that licensing would start in March as part of a plan to establish a regulated market for stablecoins and tokenized finance. In February, Financial Secretary Paul Chan Mo-po told an industry conference that approvals would begin in March.

In giving our licenses, we ensure that licensees have novel use cases, a credible and sustainable business model and strong regulatory compliance capabilities,

Chan stated in February.

The HKMA has not given a reason for the delay. “The HKMA is actively taking forward the licensing matter and will announce further details in due course,” a spokesperson noted. The HKMA’s public register listed no approved stablecoin issuers as of April 1.

Hong Kong has positioned the stablecoin regime within its existing monetary framework. HSBC and Standard Chartered are among the city’s commercial banks authorized to issue Hong Kong dollar banknotes under a system that links note issuance to U.S. dollar backing. Under that arrangement, note-issuing banks place U.S. dollars with the government’s Exchange Fund at a fixed rate of HK$7.80 per U.S. dollar and receive Certificates of Indebtedness, which back the banknotes they print.

HKMA Chief Executive Eddie Yue has drawn parallels between that structure and how stablecoins could work on-chain. In a December 2023 blog post, Yue described pre-1935 banknotes issued by commercial banks in exchange for deposited silver as “private money,” and compared stablecoins to a blockchain-based equivalent designed to hold a stable value for payments.

Authorities have presented the licensing regime as a way to bring HKD-pegged tokens under supervision, with requirements for reserve management, disclosures and operational safeguards before wider circulation. The HKMA has outlined a focus on peg stability, prudent reserve practices and compliance in governance, risk management and anti–money laundering.

Market participants are watching for the first applicants to clear the process. Authorities have not published a list of applicants or a review sequence, and the city’s register shows no licensed issuers as of April 1.