Hong Kong’s Stablecoin Ordinance will take effect on August 1.

On July 29, the Hong Kong Monetary Authority (HKMA) released the Summary of Licensing Regime for Stablecoin Issuers and the Summary of Transitional Arrangements for Existing Stablecoin Issuers, outlining the licensing system and application procedures for stablecoin issuers.

The HKMA stated that institutions interested in applying for a license may express their intent to the HKMA in August. Those that decide to proceed must submit their applications and supporting documents by September 30. Eddie Yue, Deputy Chief Executive of the HKMA, noted that the first batch of licenses will be issued in early 2026, with the initial number of licenses being in the single digits.

Song Ke, Executive Vice Dean of the Renmin University Shenzhen Research Institute, Executive Dean of the Institute of Advanced Studies in Social Sciences (Shenzhen), and Deputy Director of the International Monetary Institute, told National Business Daily that Hong Kong’s Stablecoin Ordinance is the world’s first comprehensive regulatory framework for fiat-backed stablecoins. Globally, the ordinance sets a precedent for stablecoin policy formulation.

In his view, after the ordinance takes effect, relevant institutions can quickly translate their accumulated pilot experience into practical products, accelerating the development of Hong Kong’s stablecoin ecosystem. Additionally, by promoting the digital yuan and HKD-backed stablecoins, reliance on the USD clearing and settlement system can be gradually reduced.

Excerpts from the Interview:

Hong Kong’s Stablecoin Ordinance, the World’s First Regulatory Framework, May Set a Global Legislative Benchmark

Hong Kong has long regarded fintech development as a key measure to consolidate its status as an international financial hub. It introduced the Fintech 2025 strategy early, focusing on digitalizing banking, advancing central bank digital currency (CBDC) research, improving data infrastructure, building a fintech talent pool, and formulating fintech policies.

Hong Kong’s Stablecoin Ordinance is the world’s first comprehensive regulatory framework for fiat-backed stablecoins. Globally, it serves as a model for stablecoin policy development. The ordinance’s innovative "value-anchored regulation" principle builds upon existing stablecoin regulatory approaches and may become a benchmark for future global stablecoin frameworks.

The ordinance provides a legal foundation for Hong Kong’s stablecoin market development, offering safeguards for institutions and investors while strengthening the groundwork for HKD stablecoin issuance and digital currency innovation. After implementation, Hong Kong institutions can swiftly leverage their experience in digital currency projects, talent reserves, research, and data accumulation to develop real-world products, significantly accelerating the local stablecoin ecosystem. These measures will further invigorate the market, attract more participants, and create a virtuous cycle.