Hong Kong Aims to Grant First Stablecoin Licenses by End of March

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Hong Kong’s financial chief has announced the city plans to grant its first stablecoin licenses before the end of the first quarter. This step is part of Hong Kong’s ongoing campaign to cement its status as a central cryptocurrency hub.

Financial Secretary Paul Chan revealed the timeline while speaking at the World Economic Forum in Davos, as reported by the South China Morning Post. Chan affirmed that Hong Kong’s approach to crypto assets remains “responsible and sustainable,” with the first licenses for stablecoin issuers expected in Q1.

The broader goal, according to Chan, is to develop a full-scope digital finance ecosystem covering stablecoins, exchanges, and tokenized assets. This is framed as a key strategic pillar for Hong Kong’s economic growth amidst heightened worldwide competition.

The stablecoin licensing regime, passed into law in 2025, forms a cornerstone of this strategy. It imposes strict requirements on issuers of fiat-referenced stablecoins, particularly concerning the backing reserves, user redemption rights, and overall risk management.