Hong Kong will grant its first batch of stablecoin licenses in Q1 2026, Financial Secretary Paul Chan confirmed at the World Economic Forum in Davos.
The announcement, reported by the South China Morning Post, signals Hong Kong’s next major step in building out its digital asset framework.
The city’s stablecoin licensing regime, passed in 2025, requires fiat-backed stablecoin issuers to meet strict rules on reserves, redemption, and risk management.
“We view digital assets as a financial innovation that we should embrace proactively,” Chan said. He added that “digital assets should serve the real economy” while noting the need for “strong guardrails to address risks to financial stability, market integrity and investor protection.”
Stablecoins Fit Into a Bigger Crypto Plan
Chan framed stablecoins as part of a larger push to build a full crypto ecosystem in Hong Kong, covering licensed exchanges, regulated stablecoin issuance, and tokenized financial products.
He described the city’s regulatory approach as “same activity, same risk, same regulation,” aimed at keeping development “healthy, responsible and sustainable.”
Hong Kong has already licensed 11 virtual asset trading platforms through the Securities and Futures Commission. Approved operators include OSL, HashKey, and Bullish.
In November 2025, the Hong Kong Monetary Authority launched Project Ensemble, a pilot testing real-value transactions using tokenized deposits with major banks and asset managers. The city has also issued $2.1 billion in tokenized green bonds since 2023.
Asset Managers Raise a Caution Flag
The crypto push is not without friction.
The Hong Kong Securities and Futures Professionals Association warned this week that proposed changes to virtual asset management rules could raise compliance costs and slow institutional adoption.
The group argued against removing the “de minimis” exemption for Type 9 licensed managers, which currently allows limited crypto exposure without triggering a separate virtual asset license.
The warning comes as Hong Kong consults on new licensing regimes for crypto dealing, advisory, and management services.
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