Hong Kong to issue first stablecoin licenses in March 2026

Hong Kong’s central bank plans to issue its first stablecoin licenses in March, despite ongoing opposition from Beijing, which maintains a ban on cryptocurrency activity in mainland China.

The Hong Kong Monetary Authority (HKMA) is reviewing 36 stablecoin issuer applications after passing legislation in May that requires licenses for stablecoins pegged to the Hong Kong dollar.

Experts see the move as a cautious step rather than a policy shift, with stablecoins seen as integral to the broader crypto ecosystem.

The HKMA cited potential uses such as cross-border payments and tokenized deposits for international banks.

Although interest from firms like Ant Group and JD.com has been reported, Chinese regulators advised against the plan in October, effectively halting progress.

🔗 Source: CNBC

🧠 Food for thought

Implications, context, and why it matters.

Beijing’s crypto strategy is more nuanced than a simple ban

Beijing treats US dollar-backed stablecoins as a risk to control over money, yet it also treats yuan-pegged tokens as a way to push the currency abroad 1.
Policy splits by territory. The mainland promotes the state-run digital yuan (e-CNY) to tighten oversight, while Hong Kong acts as a testing ground for stablecoins and plans to license Hong Kong dollar-pegged issuers 2.
The mainland ban also targets capital flight. Blockchain forensics firm Chainalysis put crypto and stablecoin outflows from China at $50 billion in 2020, before the 2021 ban 2.

Hong Kong’s experiment is a front in a larger geopolitical contest

Hong Kong’s stablecoin push sits inside a wider contest over digital finance. China treats US dollar-backed stablecoins as a channel for American monetary power in new payment rails 1.
Even as Hong Kong weighs private issuers, the mainland is upgrading its state option. An e-CNY framework effective 1 January 2026 moves it toward an interest-bearing, deposit-like product tied into banks 3.
Tokenization is also gaining traction through Hong Kong. Mainland state-owned Futian Investment Holdings issued a ¥500 million bond, about $70 million, on the public Ethereum blockchain in August 2.