Hong Kong Treasury Chief: Stablecoin Licenses Targeted for Issuance This Year

Hong Kong is poised to become a global leader in digital asset regulation as its Stablecoin Ordinance is set to take effect on August 1, 2025.

Speaking at the Hong Kong Digital Finance Awards 2025, Christopher Hui, Secretary for Financial Services and the Treasury, announced that the Hong Kong Monetary Authority (HKMA) is finalizing guidelines for the ordinance, with consultations ongoing and publication expected within July.

The guidelines will detail requirements for anti-money laundering (AML), counter-terrorism financing (CTF), and other regulatory measures.Hui emphasized that the number of stablecoin licenses issued will be limited to a “single-digit” figure, reflecting a cautious yet progressive approach.

The HKMA aims to receive applications shortly after the ordinance’s implementation, with a target to issue the first licenses by the end of 2025.

Hong Kong’s Digital Asset Ecosystem Advances Under the 'LEAP' Framework

Hui’s speech aligns with Hong Kong’s broader digital asset roadmap, as outlined in the Hong Kong Policy Statement on the Development of Virtual Assets 2.0, released on June 26, 2025.

The policy introduces the “LEAP” framework, a four-pronged strategy designed to establish Hong Kong as Asia’s most trusted and sustainable digital asset hub：

1. Legal and Regulatory Streamlining: Establishing a unified regulatory framework for virtual asset trading platforms, stablecoin issuers, and custody providers. The Stablecoin Ordinance builds on the Virtual Asset Trading Platform (VATP) licensing regime launched in June 2023.

2. Expanding Tokenized Products: Promoting tokenization of assets like government bonds and real estate investment trusts (REITs). Hong Kong has already issued HKD 6.8 billion in tokenized green bonds, leveraging blockchain for enhanced transparency and efficiency.

3. Advancing Use Cases and Cross-Sectoral Collaboration: Encouraging stablecoin applications in cross-border payments, supply chain finance, and government services to boost efficiency and reduce costs.

4. People and Partnership Development: Fostering talent through industry-academia collaborations, AI trading competitions, and international regulatory partnerships.

Hui highlighted the transformative potential of digital assets, noting that Hong Kong’s tokenized green bonds have reduced settlement cycles from T+5 (fifth trading day after transaction) to T+1, significantly enhancing capital flow and transaction efficiency.

ZA Online Raises HKD 3.924 Billion, Signals Stablecoin Ambitions

In a related development, ZA Online, a leading digital insurer, announced the completion of a placement of 215 million new H-shares, raising HKD 3.924 billion at HKD 18.25 per share. This placement represents 13.15% of the enlarged issued H-share capital and 12.76% of the total issued share capital. The capital injection underscores ZA Online’s strategic focus on digital finance and virtual assets.

Even ahead of the Stablecoin Ordinance’s enforcement on August 1, 2025, ZA Bank — a subsidiary of ZA Online — has already emerged as Hong Kong’s first digital bank offering dedicated reserve banking services for stablecoin issuers, following the ordinance’s legislative approval in May.

Reports indicate that at least nine institutions, including Ant Group, Lianlian Digital, and Lakala, have expressed interest in applying for stablecoin licenses.

As the ordinance approaches implementation, Hong Kong’s cautious yet assertive stance on digital asset regulation could serve as a model for other global financial centers navigating the stablecoin landscape.