Hong Kong has confirmed that its first regulated stablecoins are expected to enter circulation between the middle and second half of 2026 after licensing two bank-backed issuers. According to a written reply by Secretary for Financial Services and the Treasury Christopher Hui to Hong Kong's Legislative Council, the Hong Kong Monetary Authority (HKMA) granted stablecoin issuer licenses to two institutions with banking backgrounds in April 2026. The expected launch timeline is based on the institutions' existing business plans, as reported by crypto.news.
Under the Stablecoins Ordinance, which took effect in August 2025, licensed issuers must back their tokens with eligible reserve assets, including bank deposits and high-quality liquid debt securities. The government stated that those reserves must be placed with banks in Hong Kong, while the HKMA retains the authority to impose additional requirements if market conditions warrant. The licensing framework is designed to support financial innovation while protecting users and maintaining monetary and financial stability, according to the legislative council reply.
The HKMA will carry out ongoing supervision once regulated stablecoins begin circulating and will continue assessing whether issuance affects bank deposits, lending activity, or overall financial stability. At the international level, the government added that the HKMA is participating in studies led by organizations such as the Bank for International Settlements to examine how wider stablecoin adoption could affect traditional banking systems. The two licensed issuers are already participating in pilot projects involving central bank digital currency networks, tokenized deposits, and cross-border payment infrastructure, as reported by crypto.news.
Alongside the rollout plans, regulators have begun taking action against businesses that continue offering stablecoins without authorization. According to the Legislative Council reply, the HKMA has issued letters to unregulated stablecoin providers explaining the legal requirements under the Stablecoins Ordinance and has continued monitoring whether those businesses comply. The Securities and Futures Commission also shares information with the HKMA when it identifies suspected marketing of unregulated stablecoins to Hong Kong residents. Looking beyond stablecoin issuance, the government said it will introduce legislation later this year covering virtual asset trading, custody, advisory, and management service providers to create a more comprehensive regulatory framework.
