Hong Kong Stablecoin Regulation Draws 40+ Firms for Licenses

Hong Kong’s new stablecoin regulation, effective August 1, has prompted over 40 firms to submit preliminary inquiries to the HKMA and prepare formal licence applications. Under the FRS framework, licences require full fiat backing in high-quality assets, segregated reserves, HKD 25 million in paid-up capital and strict AML controls. Only a handful of licences are expected, heightening competition among major groups including JD.com, Ant Group, Standard Chartered and Circle, while smaller firms mainly seek publicity due to limited technical capacity. Use cases under review span stablecoin issuance, settlement infrastructure and multi-address fiat wallets. Observers note a split between real contenders and concept-chasing newcomers. Projects such as Circle’s USDC and AnchorX’s AxCNH aim to establish Hong Kong as a 24/7 global settlement hub, reducing SWIFT dependence. The regime’s robust enforcement powers, cross-sector oversight and emphasis on redemption guarantees distinguish it from EU MiCA and Singapore PSPA. The rule excludes direct RWA tokenisation, forcing issuers to adjust strategies and compliance frameworks to avoid criminal penalties. Market participants view Hong Kong’s stablecoin regulation as a benchmark for integrating private digital currencies into regulated frameworks and a step toward making the city a global stablecoin centre.