HashKey Research Institute: First Stablecoin Licenses Issued—A Critical Leap Forward for Hong Kong’s Digital Financial Infrastructure

Tim Sun, Senior Researcher at HashKey Group:

With Hong Kong’s stablecoin licensing regime now finalized, Hong Kong’s Web3 industry is officially transitioning from its early “laying-the-foundation” phase into a new era of “building skyscrapers.” The stablecoin license not only completes the most critical piece of the regulatory puzzle but also marks the beginning of a shift for Hong Kong’s digital assets—from abstract speculation and trading narratives toward tangible commercial and payment applications.

For a long time, market discussions around stablecoins largely centered on their use within native digital asset markets and their potential expansion therein. Today, however, as traditional finance accelerates its integration with digital assets, that discussion is giving way to a more concrete and fundamental question: How will this mechanism truly plug into real-world payment, settlement, and trade scenarios? According to information released by the Hong Kong Monetary Authority (HKMA), the first batch of licensees is predominantly comprised of bank-affiliated entities and large financial institutions—organizations possessing robust reserve management capabilities, strong anti-money laundering (AML) frameworks, and well-established distribution channels. This outcome comes as no surprise. From the outset, the HKMA has sent a clear signal: the initial round of licenses will be issued in a highly restrained and limited manner, with rigorous scrutiny focused squarely on use cases, risk management, AML compliance, and reserve asset arrangements. This clearly reflects the HKMA’s core regulatory philosophy—not encouraging institutions to enter the market prematurely merely for the sake of momentum, but rather prioritizing the selection of licensees with proven capacity to issue and support stablecoins reliably. The goal is to ensure stablecoins operate first within a controlled, auditable, and sustainable framework—thus striking the optimal balance between safeguarding financial stability and fostering market innovation.

Following this regulatory logic, we must move beyond viewing Hong Kong stablecoins solely through the lens of “payment tools” and instead re-examine their broader value proposition. At its essence, a Hong Kong stablecoin should be understood as the “local currency interface” of the digital finance era. Its core function extends far beyond simply lowering the barrier to on-chain transfers; rather, it enables the Hong Kong dollar—historically—to become programmable, settle in real time, and serve as the primary medium of exchange embedded directly into on-chain assets and applications, thereby integrating deeply into the digital financial system. By emphasizing viable use cases, prudent and robust operations, and market trust, the HKMA is effectively treating stablecoins as critical financial infrastructure. If Hong Kong intends to retain its status as a leading international financial center in the digital finance era, it must foster greater innovation and real-world adoption of stablecoins anchored to the Hong Kong dollar. While USD-pegged stablecoins have already achieved massive global network effects, they serve the U.S. dollar system—underpinned by U.S. regulation, USD liquidity, and USD-based settlement networks. For Hong Kong’s digital financial ecosystem to thrive, the Hong Kong dollar itself must acquire a digital, on-chain, and freely transferable interface. This is precisely the most strategic significance of Hong Kong’s stablecoin regime.

Of course, during this initial stage, the HKD stablecoin has adopted a pragmatic development path—starting locally and first establishing a closed loop for HKD-denominated issuance, HKD-based clearing, and HKD-settled delivery. This implies that, in the near term, the market is likely to settle into an implicit division of labor: USD stablecoins will continue to dominate global crypto capital markets and cross-border USD flows, while HKD stablecoins will focus sharply on serving Hong Kong’s domestic financial system, regional payments, real-world asset (RWA) settlements, and other locally regulated financial applications.

With the regulatory framework now clarified, the stablecoin ecosystem is poised for rapid growth. At present, we are actively engaging in substantive cooperation discussions with several licensed stablecoin issuers—and we remain fully open to forging deep partnerships with additional institutions planning compliant stablecoin issuance in Hong Kong. As a core participant in Hong Kong’s digital asset market, HashKey will leverage its existing licensed and compliant infrastructure, fiat on-ramp/off-ramp channels, and long-standing industry resources to provide licensed stablecoins with one-stop professional services—including listing, liquidity support, and expansion into payment use cases. Going forward, HashKey will continue to capitalize on the ecosystem advantages of its licensed exchange to fully support the listing and deep market-making of relevant trading pairs—empowering compliant HKD stablecoins across diverse application scenarios. HashKey will also maintain close collaboration with industry partners to advance practical usage and scalable deployment of compliant HKD stablecoins—particularly in key areas such as payments, settlements, and cross-border applications—thereby promoting the steady, sustainable evolution of Hong Kong’s digital asset market.