Yu Weiwen: In the future, the threshold for issuing stablecoin issuer licenses will be high, and the overall quantity will also be very limited.

Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, stated that today the stablecoin issuer licenses have officially been issued. It is expected that regulated stablecoins in Hong Kong will be gradually launched from the middle to the second half of this year. Regarding future issuance of licenses, he mentioned that there is no clear direction at the current stage. He reiterated that the issuance of licenses has a very high threshold, and even if more licenses are issued in the future, the overall number of licenses will be very limited. On April 10, 2026, the Financial Services Regulatory Commissioner issued stablecoin issuer licenses to two institutions based on the "Stablecoin Regulation" - Immutable Financial Technology Limited (composed of Standard Chartered Bank (Hong Kong), Hong Kong Telecom and Axiata Group Consortium, hereinafter referred to as Immutable) and HSBC Bank, marking a new phase in the implementation of the stablecoin regulatory system in Hong Kong. Both licensed issuers plan to initially issue Hong Kong dollar stablecoins in the first phase. Their overall business plans, application scenarios, and development directions include: Cross-border payments: Leveraging the advantages of stablecoins, utilizing the issuer's own extensive international business and partner network, compliant with regulations and requirements set by regulatory authorities in other regions, to provide efficient, transparent, and lower-cost cross-border payment solutions for businesses and individuals; Local payments: Utilizing existing business infrastructure and customer base to accelerate the use of stablecoins in Hong Kong, providing individuals and merchants with secure, fast and efficient transaction and settlement experiences; Tokenized asset trading: As a settlement tool for tokenized asset trading, compliant stablecoins can facilitate real-time transactions on the chain, help expand opportunities in the tokenized asset market, and improve market liquidity; while also exploring the use of compliant stablecoins in collateral management applications; and Innovative applications: Fully utilizing the programmable nature of stablecoins, exploring conditional payments, supply chain financing, and other innovative applications. Both licensed issuers have banking backgrounds and have participated in HKMA's experimental projects on central bank digital currency (CBDC) and tokenized deposits, having a deep understanding of the functions and application scenarios of various digital currencies, which is beneficial for exploring various possibilities of "future payments." One issuer has formed a consortium with local telecommunications, payment, and digital asset companies in Hong Kong, allowing compliant stablecoins to leverage synergies. After the steady development of their businesses, both institutions plan to gradually introduce more diverse businesses (such as scenario providers) to promote the application of compliant stablecoins and continuously expand the application scenarios of stablecoins, explore more overseas markets, and consider introducing other currencies. The Hong Kong Monetary Authority stated that the issuance of licenses has a very high threshold, and approval mainly considers two aspects: (1) whether the applicant has sufficient risk management capabilities and experience and complies with relevant regulations in Hong Kong and other regions; (2) whether the applicant can propose specific application scenarios, feasible business plans, and development plans. Out of 36 applications, Immutable and HSBC Bank presented their ability to manage risks prudently and proposed specific application scenarios and future development plans in accordance with the legal requirements, thus obtaining the licenses. Licensed issuers are required to implement comprehensive and prudent policies and risk management measures in areas such as asset reserve management and asset security, price stability mechanisms, redemption arrangements, and technology security according to regulatory requirements, as well as establishing robust anti-money laundering systems, including using blockchain surveillance tools in daily operations to detect suspicious transactions and take appropriate follow-up actions, verifying the identities of stablecoin holders through independent or reliable third-party partners to ensure the effectiveness of surveillance measures. Both licensed issuers demonstrated their ability to comply with and implement these measures in their applications. Before officially launching their compliant stablecoins, licensed issuers need to complete related preparations, including technology platform and system testing, implementing risk management measures, and arranging manpower resources. According to the current business plans of the two institutions, regulated stablecoins in Hong Kong are expected to be gradually launched from the middle to the second half of this year. After the stablecoins are officially launched in the market, the HKMA will continuously and effectively regulate the issuers based on the nature of their business and risks, through on-site inspections, off-site inspections, independent assessments, meetings with the management of the issuers, etc., to ensure compliance with relevant regulatory requirements. Regarding institutions in the first batch of applications that did not receive licenses, or other institutions that may apply in the future, the HKMA will maintain communication and exchanges with them and evaluate their applications based on relevant laws and consistent regulatory standards and requirements. The authorities adopt an open and cautious attitude towards future issuance of licenses and timing, with no clear direction at the current stage. However, the authorities reiterated that considering the risks involved in issuance business, user protection, market capacity, and long-term development, the issuance of licenses has a very high threshold, and even if more licenses are issued in the future, the overall number of licenses will be very limited.