September 04, 2025
By Anjali Kochhar
In August 2025, a total of 77 companies submitted applications to become licensed stablecoin issuers under Hong Kong’s newly introduced regulatory regime. The Hong Kong Monetary Authority (HKMA) has made it clear that only a limited number of licenses will be granted initially, making competition intense among applicants.
One of the most notable contenders is the Bank of China Hong Kong (BOCHK), a leading note-issuing bank in the city. BOCHK’s application highlights its institutional weight and its involvement in Hong Kong’s central bank digital currency trials. Its participation signals growing confidence among traditional financial institutions in the stablecoin market.
Another strong applicant is Anchorpoint Financial, a joint venture between Standard Chartered, Hong Kong Telecom, and Animoca Brands. Anchorpoint had already taken part in the HKMA’s stablecoin sandbox, giving it an advantage as the only bank-backed consortium with prior regulatory testing experience.
The stablecoin licensing regime marks a major step in Hong Kong’s digital asset oversight. Introduced under the Stablecoins Ordinance, effective from August 1, 2025, the framework requires applicants to meet strict conditions. These include a minimum paid-up share capital of HK$25 million, full reserve backing with high-quality assets, comprehensive anti-money laundering controls, clear redemption processes, strong governance, and rigorous audit and disclosure obligations.
While the rules bring clarity and enhance investor protection, they also raise concerns for smaller players. High compliance thresholds and limited license availability mean that larger banks and fintech firms are more likely to succeed, potentially consolidating market power in the hands of established institutions.
To ease the transition, the HKMA has allowed temporary licenses for existing stablecoin issuers, permitting them to operate for up to six months while their applications are reviewed. However, those who fail to secure a license could be required to shut down operations in Hong Kong.
This regulatory push coincides with a surge in fintech investment in the region. In July alone, more than US$1.5 billion was raised by Hong Kong-based firms to expand ventures in stablecoins, cryptocurrencies, and blockchain payment systems.
The licensing race highlights Hong Kong’s ambition to position itself as a leading global hub for stablecoins. By combining strict oversight with an open framework, the city aims to balance innovation with stability, though the market may ultimately favour resource-rich institutions capable of meeting the demanding requirements.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
