Hong Kong HKD Stablecoin License Delay After March Target

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• Hong Kong missed its March deadline for HKD stablecoin licensing
• No approvals have been issued by the Hong Kong Monetary Authority (HKMA)
• No updated timeline has been provided for license rollout
• HSBC and Standard Chartered–Animoca JV expected among early recipients
• Framework linked to Hong Kong’s existing note-issuing monetary system

HKMA Misses March Stablecoin Licensing Timeline

Hong Kong has failed to meet its self-imposed March deadline to issue licenses for Hong Kong dollar (HKD) stablecoin issuers. The Hong Kong Monetary Authority (HKMA) has not approved any applications despite earlier indications that licensing would begin within the month.

At Consensus Hong Kong in February, Financial Secretary Paul Chan Mo-po stated that licenses would start being issued in March as part of the city’s broader effort to position itself as a regulated hub for stablecoins and tokenized finance. The absence of approvals has now pushed the expected timeline into April, raising questions about how quickly the regulatory framework will transition from policy to implementation. An HKMA spokesperson did not provide a reason for the delay.

Major Institutions Expected Among Early Licensees: Reports indicated that major financial institutions, including HSBC and a joint venture between Standard Chartered and Animoca, were likely to be among the first recipients of stablecoin licenses. Both HSBC and Standard Chartered are note-issuing banks in Hong Kong. Their involvement highlights the close relationship between the upcoming stablecoin regime and the city’s existing monetary infrastructure.

Stablecoins Linked to Hong Kong’s Monetary System

Hong Kong’s note-issuing system dates back to 1846, when private banks issued currency backed by silver deposits in the absence of a central bank. Today, note-issuing banks deposit U.S. dollars with the government’s Exchange Fund at a fixed rate of HK$7.80 per dollar and receive Certificates of Indebtedness, which allow them to print banknotes.

HKMA Chief Executive Eddie Yue previously compared this system to stablecoins. In a December 2023 blog post, he noted that pre-1935 banknotes issued by commercial banks in exchange for silver deposits functioned as a form of “private money.” He described stablecoins as a blockchain-based equivalent, representing tokens with stable value that can serve as a medium of exchange on-chain.