Hong Kong Receives 36 Stablecoin License Applications, Approvals Set for 2026

Hong Kong has received 36 applications for stablecoin issuance licenses. This signals strong early demand ahead of its new regulatory regime. Officials say the first approvals could arrive in early next year. As regulators move carefully to balance innovation with financial stability. The update came from Financial Services and the Treasury Secretary, Christopher Hui. He is speaking this week as Hong Kong pushes forward with one of Asia’s most detailed stablecoin frameworks.

36 Stablecoin Applications Filed Ahead of First Approval Window

According to the Hong Kong Economic Journal, applications came in before the end of September. Shortly after the city’s Stablecoin Ordinance took effect in August. The ordinance formally requires stablecoin issuers to obtain licenses before offering products to the public. Hui confirmed that regulators will not rush approvals. Instead only a limited number of licenses will be granted in the first phase. Authorities want to test the system under real conditions before expanding access. This approach mirrors Hong Kong’s earlier rollout of virtual asset trading platform licenses. Where only a handful of exchanges passed the initial review.

Reserve Backing, Price Stability, and AML Take Priority

Regulators have made their priorities clear. Applications will be judged first on reserve management, price stabilization mechanisms and anti-money laundering controls. Issuers must show that stablecoins are fully backed, properly segregated and subject to strong governance. The goal is to avoid scenarios where redemptions fail or prices break from their peg during market stress.

Hui said these rules are designed not only to protect investors but also to reduce transaction disputes by setting clear compliance standards. In short, fewer gray areas, fewer blowups. This stance comes amid broader regional scrutiny. Last month, China’s central bank warned that stablecoins could enable illicit financial activity. Hong Kong appears determined to address those risks head-on rather than slow adoption entirely.

Custody Licensing Framework Moves to Legislative Council Next

Stablecoin issuance is only one piece of the puzzle. Hong Kong is also preparing a licensing regime for virtual asset custody services, a critical layer for institutions. Hui confirmed that his office is working with the Securities and Futures Commission (SFC) to finalize the framework. The government expects the proposal to reach the Legislative Council in 2026.

Custodians will face requirements around asset segregation, security controls and operational resilience. This is especially relevant for banks, fund managers and stablecoin issuers that rely on third party custody. Once in place, the system would give Hong Kong one of the most complete regulatory stacks for digital assets in Asia.

Hong Kong Bets on Regulation as a Competitive Advantage

Officials framed the effort as deliberate, not restrictive. Hui said the government has “meticulously crafted” its Web3 and digital asset policies to align with global standards. While keeping room for experimentation. The message is clear. Hong Kong wants stablecoins. It just wants regulated stablecoins. If approvals begin in early as planned. Hong Kong could emerge as a key hub for compliant stablecoin issuance. Especially for firms targeting Asian and offshore markets. Currently, the race is on; 36 applicants are waiting; only a few will make the first cut.