Following is a question by Professor the Hon Michael Ngai and a reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (June 10):

Question:

     The Hong Kong Monetary Authority (HKMA) officially granted stablecoin issuer licences to two entities in April this year. Regarding the development and regulation of stablecoins, will the Government inform this Council:

(1) as it is learnt that regulated Hong Kong Dollar-referenced stablecoins will be launched progressively in mid to second half of this year, and given the keen market demand for regulated stablecoins, whether the authorities will actively co-ordinate with the licensed entities and major financial infrastructure institutions to enable the early launch of the relevant stablecoins onto the market; if so, of the specific measures and the earliest estimated time of launch; if not, the reasons for that;

(2) whether it knows HKMA's progress in processing other applications for stablecoin issuer licences, as well as the long-term planning on the screening criteria and the timing for granting additional licences in the future; and

(3) how the Government will promote the interconnectivity and synergistic development among stablecoins, central bank digital currencies and tokenised assets, with a view to fully accelerating the digital transformation of Hong Kong's financial industry?

Reply:

President,

     The Stablecoins Ordinance (Cap. 656) came into effect in August 2025 to provide for a licensing regime for issuers of fiat-referenced stablecoins in Hong Kong. Subsequently, the Hong Kong Monetary Authority (HKMA) received a total of 36 applications during the initial application period. Following a comprehensive review of these applications in accordance with the specific requirements set out in the Stablecoins Ordinance, the HKMA granted stablecoin issuer licences to two entities in April 2026.

     Having consulted the HKMA and the Securities and Futures Commission (SFC), my reply to the three parts of the question is as follows:

(1) Prior to the official business launch, the above two stablecoin issuers licensed by the HKMA (licensed issuers) must complete the testing of technology platforms and systems, implement risk management measures (including management and safekeeping of reserve assets, price stabilisation mechanisms, redemption arrangements, technology security, etc), arrange human resources, etc. The HKMA has maintained close contact with the licensed issuers to ensure that all pre-launch preparations are proceeding as planned.

     Based on the current business plans as proposed by the two licensed issuers, we expect Hong Kong-regulated stablecoin to be launched as early as the middle of this year.

(2) The HKMA has already initiated further engagement with the remaining licence applicants. On the basis that these applicants fulfil the minimum criteria under the Stablecoins Ordinance, the HKMA will assess these applications against stringent standards in a consistent manner, primarily evaluating whether applicants are able to (1) propose practical and feasible use cases that contribute to the development of the overall industry ecosystem; (2) propose a robust and sustainable business operating model (including consideration of the risk management capabilities and experience of the applicants); and (3) comply with the laws and regulations in Hong Kong and other relevant jurisdictions.

     Meanwhile, the HKMA has communicated to the relevant licence applicants that it has no definitive inclination regarding the future direction and timing of licensing at this stage. That will depend on various considerations, including whether the applications fulfil the licensing criteria, market demand for stablecoins, actual use cases and international development trends (including discussions on the regulatory aspect), as well as the operation and market reception of the licences just granted after their business launch.

     Nevertheless, it should be emphasised that given the risk associated with issuance activities, the need for user protection, as well as the capacity and sustainable development of the market, the licensing threshold will remain high. Should additional licences be granted in future, the overall number of licences will remain very limited.

(3) The Government issued the Policy Statement 2.0 on the Development of Digital Assets in Hong Kong in June 2025, setting out our vision for a trusted and innovative digital asset ecosystem that prioritises risk management and investor protection, while delivering concrete benefits to the real economy and financial markets. Key focuses of the Policy Statement 2.0 include expanding the suite of tokenised products, as well as advancing use cases and cross-sector collaboration, including exploring the use of stablecoins as a payment tool.

     Under the policy direction of the Policy Statement 2.0, and together with the implementation of the Stablecoins Ordinance, the Government and financial regulators are further driving the development and interaction of stablecoins, digital currencies and tokenised assets.

     In particular, the use cases of the two licensed issuers include using regulated stablecoins to enable real-time on-chain tokenised asset transactions, unlocking opportunities for the tokenised asset market and enhancing market liquidity. In addition to issuing stablecoins, both licensed issuers have participated in the HKMA's pilot projects on central bank digital currencies and tokenised deposits. With collaboration partners comprising local telecommunications, payments, and digital asset firms, they are well positioned to achieve greater synergy in exploring the potential of and complementing the strengths of different new payment tools, as well as enhancing interoperability between these payment tools and tokenised assets. The HKMA will continue to maintain close contact with the licensed issuers to ensure the implementation of the relevant use cases as planned, while encouraging them to further explore the application of regulated stablecoins in the digital finance ecosystem, with a view to creating value for real economic and financial activities.

     In addition, with the support of the SFC as well as the financial and technology sectors, the HKMA has established the Ensemble Architecture Community. Together, they are actively taking forward work on promoting and implementing the local standards to support interoperability among central bank digital currencies, tokenised money and tokenised assets, thereby promoting the seamless movement of money and assets within the ecosystem, as well as providing the industry with clearer direction for future development. Building upon the successful outcomes of the Ensemble Sandbox, the HKMA launched EnsembleTX in November last year, enabling real-value transactions involving tokenised deposits and digital assets within a controlled pilot environment. The initial focus is on empowering market participants to utilise tokenised deposits in tokenised money market fund transactions, and to manage liquidity and treasury needs in real time.

     At the same time, the SFC has been steadily implementing the ASPIRe roadmap. This includes developing detailed and practical regulatory guidance to facilitate the application of tokenisation in assets and financial products subject to regulatory clarity and controllable risks, thereby promoting the integration of traditional finance and Web3.

     Looking ahead, the Government and financial regulators will continue to build a clear and risk-based regulatory framework as guided by the principle of "same activity, same risks, same regulation", with a view to promoting the healthy, responsible and sustainable innovation and development of the digital asset ecosystem in Hong Kong, thereby further strengthening Hong Kong's status as an international financial centre.

     Thank you, President.

Ends/Wednesday, June 10, 2026
Issued at HKT 15:12

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