Hong Kong is preparing to issue fewer than 10 stablecoin licenses, expecting applications from major companies like JD.com, Ant Group, and Standard Chartered by August 2025.
Number of Licenses and Competition Among Financial Giants
Hong Kong authorities plan to issue stablecoin licenses, attracting up to 40 applications primarily from notable Chinese financial and tech firms. The Monetary Authority of Hong Kong plans to enforce stringent anti-money laundering regulations, reflecting Christopher Hui's statement about expected approvals to emerge by end-2025. The focus is on leveraging HKD and CNH stablecoins to enhance cross-border transactions.
Stablecoin Regulation and Its Impact on the DeFi Market
It is expected that stablecoin regulation in Hong Kong might attract more institutional players into DeFi markets. Similar to Singapore's case, where limiting stablecoin licenses boosted institutional trust but led to limited issuer expansion. The emphasis on stablecoin regulation could result in increased liquidity and diversified financial products.
Expectations and Future Projections for Stablecoins
Although the actual number of licenses will be minimal, intense competition continues among applicants actively recruiting blockchain talent. Major firms are investing in technology aimed at improving cross-border transactions, and experts suggest this could accelerate the development of stablecoins and their application on the global stage.
Issuing fewer stablecoin licenses in Hong Kong may change the landscape of financial services in the region, drawing attention from major players and fostering a new wave in technology development.
