Key Highlights
- The Hong Kong Monetary Authority (HKMA) is reviewing 36 applications under the Stablecoin Ordinance and is expected to provide approval in March 2026
- In February 2026, the People’s Bank of China (PBOC) and seven agencies issued a joint notice to ban unauthorized issuance of offshore renminbi-linked stablecoins and real-world asset tokenization
- This licensing framework is expected to attract institutional capital and facilitate cross-border settlements
Amid the chaos in the world, Hong Kong is going to witness a historic moment in its digital asset journey. In March, the city is expected to issue its first-ever licenses for stablecoin issuers, which will open doors for the digital asset sector across Asia and beyond.
The Hong Kong Monetary Authority (HKMA) is currently reviewing 36 applications under the Stablecoins Ordinance, which is a law that took effect in August 2025. According to the official document from Financial Secretary Paul Chan, only a small number of applications will receive approval in this first batch. The selection process is very strict, which focuses on sustainable business models. It also checks the strict anti-money laundering compliance.
This licensing practice is among the world’s most detailed and difficult regulatory frameworks. It requires issuers to back their stablecoins fully with liquid assets held in trust with approved custodians. Apart from this, withdrawal requests must be completed at par value within 1 business day. Licensed issuers are also prohibited from paying interest to holders. Also, they will have to maintain strong internal controls, which includes appointment of independent directors with specific compliance functions.
Hong Kong Prepares to Receive First Batch of Compliant-friendly Stablecoins in March
In this approval process, there are many entities that have applied to become the first stablecoin issuer in this region. These include participants like RD InnoTech, JD.com’s JINGDONG Coinlink Technology, and Anchorpoint Financial. Anchorpoint is a joint venture between Standard Chartered Bank’s Hong Kong arm, Animoca Brands, and telecommunications provider HKT.
Apart from this, HSBC has also shown interest in this race; though, its application status is still unknown. The first batch of licenses is expected to focus on Hong Kong dollar-pegged tokens, which are developed for payments and asset tokenization.
China Bans Offshore Issuance of Unapproved Stablecoins
While Hong Kong is preparing to approve the first batch of licenses to launch stablecoins, mainland China made a huge announcement. In February 2026, the People’s Bank of China (PBOC) and some other government agencies issued a joint notice recalling the nation’s 2021 crypto ban. The country has extended it to prohibit the unauthorized issuance of offshore yuan-pegged stablecoins and real-world asset (RWA) tokenization.
(Source: Watcher.Guru)
In the statement, the Chinese regulator clarified that no entity, whether domestic or foreign, can issue renminbi-linked stablecoins without approval from them. The reason behind this ban is to threaten China’s monetary sovereignty, as digital assets can create a gap in anti-money laundering regulations.
This statement is enough to understand that Beijing is viewing stablecoins pegged to the yuan as competitors to its official digital currency, the e-CNY. e-CNY is the world’s first interest-bearing central bank digital currency, on January 1, 2026.
This guideline has clearly banned Chinese entities from participating in Hong Kong’s stablecoin issuance. This was the reason why some stablecoin issuers like Ant Group and JD.com have reportedly paused their plans after receiving guidelines from Beijing.
Hong Kong’s Stablecoin Approval to Make Asia’s Compliant Stablecoin Gateway
Hong Kong’s regulated stablecoin launch will make the city a compliant gateway for institutional players who do not want to use unregulated stablecoins like USDT.
(Source: DefiLIama)
In 2025, the global stablecoin market surged to $311 billion, with USDT alone accounting for $183.2 billion as of February 19, 2026. By offering licensed Hong Kong dollar and fiat-pegged options, the city expected to attract capital.
This approach makes Hong Kong different from Singapore’s approach. Also, it could create pressure on other Asian jurisdictions, including Japan and South Korea, to make amendments in their own frameworks. These project trials in a regulated environment are already showing real-world applications, including cross-border settlements. This could boost Asia’s regulated digital asset trading volume, which is estimated at $2 billion monthly.
Stablecoins Listing on Exchanges
After getting a green light from the regulators, licensed stablecoins are expected to be listed on Hong Kong’s regulated trading platforms, such as OSL and HashKey. This will expand its trading apart from spot markets to include derivatives like perpetuals and futures.
This regulatory process will align with the upcoming dealer and custodian rules scheduled for summer 2026, where it is expected to reduce depegging risks, such as witnessed in the TerraUSD (UST) case.
Hong Kong’s stablecoin regime is developed to address cross-border flows while maintaining know-your-customer (KYC) and anti-money laundering standards.
In late February 2026, the People’s Bank of China and HKMA completed a pilot test by using digital yuan and Hong Kong stablecoins for real-world asset settlements.
The test has reduced transaction times from 2 hours to just 3 minutes. It also cut down costs by over 20%.
This “dual-currency” model uses digital yuan as a compliant entry channel and Hong Kong stablecoins as a liquidity bridge. While not a reversal of Beijing’s ban, the pilot shows how regulated stablecoins can support offshore renminbi activity without directly challenging mainland controls.
Summing Up
While the stablecoin market is rapidly growing, the industry is expecting an official announcement by the end of March. After reviewing applications and selecting issuers, Hong Kong is expected to put itself in the race of compliant stablecoin innovation. By approving a small number of stablecoins, HKMA wants to ensure that the first licensed stablecoins stay in line with regulations and improve cross-border transactions.
Also Read: Top Three Token Unlocks to Watch Out in March 2026
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