Hong Kong Stablecoin License to be Issued Soon: First Approvals to Begin in March, Digital Asset Regulation Enters a New Phase

On February 11, Hong Kong’s Financial Secretary Paul Chan announced that the city is prepared to issue the first stablecoin licenses in March, marking the official transition of local stablecoin regulation into the practical implementation phase. This statement was made during a digital asset industry conference, sparking significant market attention on topics such as the “Hong Kong stablecoin regulatory framework” and the “prospects for compliant stablecoin issuance.”

Paul Chan pointed out that in the initial phase, only a limited number of licenses will be issued. Regulatory authorities will focus on whether applicants have clear use cases, sustainable business models, and comprehensive compliance and risk management systems. He emphasized that stablecoins are not merely payment tools but are important infrastructure connecting traditional finance with on-chain economies, requiring a balance between innovation and risk control.

In addition to stablecoins, Hong Kong is also finalizing the licensing regime for custodial service providers, with related legislation expected to be introduced this summer. This initiative will complement the existing digital asset regulatory framework, covering key areas such as issuance, trading, and custody, thereby building a more comprehensive compliant digital asset ecosystem.

Regarding industry trends, Paul Chan mentioned three accelerating directions: the continuous expansion of real-world asset tokenization, the deepening integration of decentralized finance (DeFi) with traditional finance, and the increasingly close combination of artificial intelligence and blockchain technology. Currently, traditional financial products like government bonds and money market funds are increasingly issued on-chain to improve settlement efficiency, support partial ownership, and enhance the liquidity of previously illiquid assets.

He also noted that as AI agents gradually gain autonomous decision-making and execution capabilities, a “machine economy” may emerge in the future. AI systems could hold and transfer digital assets on-chain, pay for services, and trade with each other. This concept is also seen as a potential key application scenario for stablecoins and blockchain infrastructure.

As the first batch of stablecoin licenses approaches, Hong Kong is further consolidating its leading position in digital asset regulation and innovation in Asia.