More than 40 companies are in fierce competition to issue stablecoins in Hong Kong: report

The race for stablecoin licenses in Hong Kong is heating up, with dozens of firms preparing to apply ahead of the new regulatory framework set to go live.

According to a recent report by local media outlet First Financial, more than 40 companies are preparing to apply for the soon-to-be-launched Hong Kong stablecoin license.

Applicants reportedly include JD.com and Ant Capital, with anticipation mounting as the August 1 rollout date nears after months of regulatory work to finalize the framework amid growing market interest.

However, local industry sources say the number of licenses regulators will issue is expected to be limited, potentially in the single digits, despite the high level of demand. 

The comments suggest a cautious approach by the regulator to keep the sector controlled to ensure oversight and investor protection. Earlier in the year, the Hong Kong Monetary Authority (HKMA) outlined a strict set of requirements for approval, including robust risk controls, compliance with anti-money laundering rules, and a clear demonstration of real-world use cases for any stablecoin issued.

Financial Secretary Paul Chan said the government is taking a step-by-step approach to the stablecoin regime, starting with building a regulatory foundation and initially focusing on fiat-pegged tokens.

Chan also explained that the broader goal is to position Hong Kong as a competitive global hub by attracting stablecoin issuers from around the world.

The country’s push is part of a broader overhaul of its digital asset policy. On June 26, regulators introduced a new “LEAP” framework, under which the stablecoin licensing regime will officially roll out. Additionally, it will set the stage for future pilot programs testing stablecoin use in everyday scenarios such as payments and other financial services.

As part of the initiative, the government also plans to promote collaboration between public agencies and industry players to help build the underlying infrastructure for the fiat-backed digital assets.