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Julie Zhang

Enoch Yiu

Hong Kong’s highly anticipated first batch of stablecoin licences did not materialise as expected by the end of March.
Industry players said the delay may be caused by a slower-than-expected review process, adding that it could also be due to the regulators’ cautious stance towards launching the first batch of regulated stablecoin licences as the city seeks to cement its status as a digital-asset hub.
“I don’t think [the delay] is caused by the market,” said Jack Poon, a member of the task force on promoting Hong Kong Web3 development and a professor of fintech at the Hong Kong Polytechnic University. “Likely, it is more administrative to ensure all the items are checked or perhaps, the narrative of how the new issuer will position itself for the future.”
A spokesperson for the Hong Kong Monetary Authority (HKMA) said on Tuesday that it was actively taking forward the licensing matter and would announce further details in due course.
The market has been eagerly awaiting who would win the licences and how the stablecoins would be put to use, after two senior officials said at Consensus Hong Kong, the city’s flagship digital asset conference on February 11, that the government was targeting issuing licences in March.


Chief Executive John Lee Ka-chiu said that stablecoin licences would be issued “within the next month”, while Financial Secretary Paul Chan Mo-po said the government planned to issue only a “small number” of stablecoin issuer licences in the first batch in March.
The focus has centred on a joint venture between Standard Chartered Bank, Animoca Brands and Hong Kong Telecommunications, and HSBC as being among the first batch of institutions to obtain stablecoin issuer licences.
The HKMA has set a high bar for licence holders, requiring them to meet strict capital, reserve and redemption standards designed to ensure stablecoins remain backed and redeemable at all times.
Hong Kong was right not to rush, according to Richard Portes, professor of economics at London Business School.
“The basic risk with a stablecoin is the risk of a run, like a bank run,” he said. “If holders start doubting whether the reserves backing the stablecoin are really there or really liquid, they will start to redeem – and you get the same kind of dynamics as in a bank run.
“If there were contagion to the rest of the financial system, that would be a disaster. Overall, Hong Kong’s cautious approach, with good detailed regulation that is now being implemented, seems to me to be about as good as you can do if you are going into the stablecoin game.”
Analysts also believe the delay will not derail the broader plan.
“Any minor delay in issuing the first licences signals regulators’ priority on quality over speed,” said Livio Weng, CEO of Bitfire, a Hong Kong-licensed virtual asset manager. “Hong Kong’s approach to digital finance leadership has consistently been ‘strict first, flexible later’. This careful compliance review ensures Hong Kong’s stablecoin ecosystem is built on a secure foundation from the start.”
Kenny Tang Sing-hing, chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators, said the stablecoin licensing push was aligned with Beijing’s policy of developing the city into a leading global Web3 and digital-asset hub.
“The launch of stablecoin licences is in line with that direction, with a robust regulatory framework being put in place,” Tang said. “Even if it is not announced in March, I believe the overall plan will not be affected.”


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Hong Kong’s anticipated stablecoin licence by end-March does not materialise

Hong Kong’s stablecoin initiative is part of efforts to become a global digital-asset hub. Photo: Getty Images

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Hong Kong’s stablecoin initiative is part of efforts strengthen the city’s bid to become a global digital asset hub. Photo: Getty Images

The potential approval of HSBC, Hong Kong’s largest bank by assets, comes as a surprise given that it did not participate in the HKMA-led stablecoin issuer sandbox, unlike its peer Standard Chartered. Photo: Harvey Kong 

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Analysts say the delay is most likely administrative and that the overall plan is still on track


Analysts say the delay is most likely administrative and that the overall plan is still on track.


Hong Kong’s anticipated stablecoin licence by end-March does not materialise

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Analysts say the delay is most likely administrative and that the overall plan is still on track

Analysts say the delay is most likely administrative and that the overall plan is still on track