Hong Kong to Begin Stablecoin Licensing Before The Year-End

Hong Kong may issue its first stablecoin licenses before the end of the year, although the number of approvals is expected to remain in the single digits, according to the region’s top financial official. 

As per the local reports , Christin Hui, Secretary for Financial Services and the Treasury has confirmed that the city’s new stablecoin licensing regime will officially take effect in August 2025. The framework is aimed at supporting the use of fiat-backed digital assets in real-world applications, especially cross-border payments. 

“We hope that [stablecoins] will focus on addressing the difficulties and pain points in the real economy, such as cross-border payments, especially when involving local currencies with higher risks, or when the local financial system is not so well-developed, creating certain challenges for cross-border payments,” Hui stated. 

Hui emphasized the potential benefits of fiat-backed stablecoins as cost-effective tools for global transactions. While the initial licensing focus is on stablecoins pegged to the Hong Kong dollar, industry interest has shifted toward yuan-pegged stablecoins for offshore use. 

China’s tech giants JD.com and Ant Group stand for a yuan-denominated stablecoin in Hong Kong. Both groups want digital tokens linked to the offshore yuan to be approved by the central bank. This occurs as global cryptocurrency payments are dominated by stablecoins tethered to the US dollar.

Hui noted that any stablecoin involving foreign currencies would require careful coordination with relevant international regulations. 

While Hong Kong’s regulatory framework allows fiat-backed stablecoins, there are no explicit restrictions on which currencies may be used. Still, regulators will evaluate foreign currency-based stablecoins for potential impacts on exchange rates and broader financial stability. 

This initiative of stablecoin licensing seems to be in alignment with the global shift. Shift that started taking place after the U.S. The Senate passed the GENIUS Act in June 2025, a bipartisan bill that mentions the clear rules for stablecoin.