Hong Kong to Limit Stablecoin Licenses in 2025 Amid Regional Race

Hong Kong may issue stablecoin licenses before the end of 2025, but the number will likely remain in the "single digits," according to Christopher Hui, Secretary for Financial Services and the Treasury. The licensing regime is expected to take effect in August, with authorities adopting a cautious yet proactive approach to digital asset oversight.

Stablecoins could address real-world economic challenges, particularly in cross-border payments for regions with volatile currencies or underdeveloped financial systems. Fiat-backed stablecoins may lower transaction costs and improve international payment efficiency.

The regulatory sandbox initially focused on Hong Kong dollar-pegged stablecoins, but offshore yuan-pegged alternatives are gaining traction. Chinese tech giants JD.com and ANT Group are reportedly lobbying China’s central bank to approve such offerings, intensifying regional competition.

Hui emphasized that stablecoins involving foreign currencies WOULD require close coordination with relevant jurisdictions. The current framework accommodates stablecoins backed by legal tender.