Hong Kong to launch stablecoin licensing in August 2025 – Details

Key Points

1. Hong Kong will launch stablecoin licensing by August 2025, with only a limited number of licenses (likely single digits) granted initially.

2. Stablecoins are intended to address real economy difficulties, facilitate cross-border transactions, and reduce payment impact.

3. The Hong Kong Monetary Authority (HKMA) has launched a framework focusing initially on offshore yuan-backed tokens, with major Chinese firms like JD.com and Ant Group reportedly seeking approval.

4. Christopher Hui emphasized regulatory considerations, noting that yuan-backed stablecoins involve another jurisdiction's currency.

5. The U.S. dominates the stablecoin market with USDT and USDC, supported by regulatory momentum like the GENIUS Act, posing competition for Hong Kong.