Hong Kong licensed its first stablecoin in March

Stablecoin Schedule and Licensing Requirements

The Hong Kong Monetary Authority (HKMA) has confirmed it will begin issuing its first batch of stablecoin licenses in March 2026, following the full implementation of the city's Stablecoin Regime on January 1, 2026.

This announcement, made during a regulatory press briefing and reported by the South China Morning Post and Bloomberg on February 2, 2026, marks the completion of Hong Kong's years-long effort to create a comprehensive licensing framework for fiat-referenced stablecoins (FRS) while maintaining its position as Asia's leading regulated digital asset and cryptocurrency hub.

HKMA Licensing Framework

HKMA emphasized that licenses will be limited to fiat-backed stablecoins pegged to major currencies (HKD, USD, EUR), with algorithmic or commodity-backed tokens excluded from this initial phase.

Although the final details will be confirmed upon release, Hong Kong's stablecoin scheme is expected to highlight:

• Ensure adequate reserves are maintained through high-quality liquid assets.

• The right of redemption is clear and enforceable at face value.

• Client funds are kept strictly separate.

• Strong governance, risk management, and auditing requirements.

• Continuous regulatory oversight by the HKMA.

In practice, this creates a high barrier to entry, favoring issuers with good market capitalization and strong compliance capabilities.

Hong Kong compared to its global rivals

Hong Kong's roadmap places it among the most proactive jurisdictions globally, alongside the EU's MiCA framework and recent US legislative momentum on stablecoins. Unlike fragmented approaches elsewhere, the HKMA is providing legal certainty from the outset, which is often more valuable to institutions than loose but vague rules.

This clarity strengthens Hong Kong's competitiveness compared to other Asian financial centers and affirms its role as a gateway between traditional finance and on-chain markets.

For stablecoin issuers, licensing opens the door to legitimacy, institutional partnerships, and large-scale acceptance—but only for those who can meet stringent requirements. Banks, payment companies, and fintech firms are likely to be early beneficiaries, while issuers lacking capital or located overseas may be excluded.

Our review

The Hong Kong Monetary Authority's (HKMA) plan to license its first stablecoins by March 2026 marks a landmark moment for Asia's digital finance landscape. By establishing a clear, bank-standard framework for fiat-backed stablecoins, Hong Kong is positioning itself as the region's leading hub for regulated digital dollars – surpassing Singapore, Dubai, and emerging competitors.

For issuers like Circle (USDC), Tether (USDT), and emerging companies (USD1, RD Innotech), March is a high-stakes race to gain first-mover advantage in one of the world's wealthiest and most connected financial hubs. Success here could unlock billions of dollars in cross-border capital flows, tokenized asset adoption, and institutional participation.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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