April 10, 2026, marked a significant milestone as the Hong Kong Monetary Authority (HKMA) officially granted stablecoin issuer licenses to two institutions: Hongkong and Shanghai Banking Corporation (HSBC), which applied through its own licensed banking entity, and Anchorpoint Financial Technology Limited, a joint venture established by Standard Chartered Bank (Hong Kong), Hong Kong Telecom, and Animoca Brands. The licenses are effective immediately. Both institutions are expected to launch regulated Hong Kong dollar stablecoins after completing system testing and implementing risk management measures, with official rollout anticipated between mid and late 2026.
The core significance of this development lies not in the issuance of the "first batch of licenses" itself, but in Hong Kong becoming the world’s first major financial center to establish a dedicated licensing regime for fiat-backed stablecoins and successfully grant the inaugural licenses. Since the Stablecoin Ordinance took effect on August 1, 2025, the HKMA has received 36 qualified applications spanning banks, tech giants, payment institutions, e-commerce companies, and Web3 native startups. However, the approval rate for the first batch was only about 5%. After announcing the licenses, HKMA Chief Executive Eddie Yue reiterated that the stablecoin licensing process sets a very high bar; even if more licenses are granted in the future, the total number will remain strictly limited.
From a regulatory perspective, Hong Kong’s stablecoin licensing regime places issuers under a compliance framework comparable to that of banks. The Stablecoin Ordinance requires issuers to be registered in Hong Kong, maintain paid-up capital of at least HKD 25 million, and ensure every stablecoin is backed 100% by highly liquid assets—such as cash, bank deposits with maturities under three months, or government/central bank bonds with maturities under one year. Stocks, corporate bonds, and crypto assets are strictly prohibited as backing. Reserve assets must be held in trust by a licensed bank or an independent custodian approved by the HKMA, kept strictly segregated from the issuer’s own assets, and holders must have statutory redemption rights, with redemption requests processed within one business day. Issuers are required to prepare daily reserve reports, submit weekly filings to the HKMA, and provide monthly certification reports from independent auditors for public disclosure. Critically, license holders are prohibited from paying any interest to stablecoin holders—effectively blocking the "stablecoin as an investment" path and locking stablecoins into their core role as payment instruments. Algorithmic and uncollateralized stablecoins are completely banned.
This licensing outcome also signals a deeper structural shift: stablecoins are no longer just trading tools within the crypto market, but are being integrated into Hong Kong’s mainstream financial infrastructure. HSBC plans to launch its Hong Kong dollar stablecoin in the second half of 2026, directly integrating it with PayMe and HSBC Hong Kong’s mobile banking app for everyday retail and merchant payments. Anchorpoint will begin phased issuance of its HKDAP stablecoin pegged to the Hong Kong dollar starting in Q2, adopting a B2B2C model focused on settlement of tokenized real-world assets (RWA) and optimizing cross-border payment networks. Both institutions’ business plans cover cross-border payments, local payments, tokenized asset trading, and innovative applications. Notably, tokenized asset trading will use compliant stablecoins as real-time on-chain settlement tools, directly supporting the development of the tokenized asset market and enhancing liquidity.
How Regulators Selected the First Licensed Institutions from 36 Applications
The sheer number of registrations demonstrates that market demand for stablecoin licenses far exceeds the regulator’s capacity—only 2 out of 36 applications were approved. The HKMA’s "36 to 2" outcome sends a clear message: this is not a "first come, first served" race for licenses, but a rigorous selection process centered on risk control and scenario validation.
HKMA Deputy Chief Executive Nelson Chan stated after the license announcement that all applicants were judged by uniform standards, focusing on two main criteria: whether the applicant has sufficient risk management capabilities and experience, and compliance with regulations in Hong Kong and other jurisdictions; and whether the applicant can present concrete use cases and feasible business plans. In practice, the 36 applications included banks, tech giants, payment institutions, e-commerce firms, and Web3-native startups. Ultimately, HSBC and Anchorpoint, both with deep banking backgrounds and prior participation in HKMA experiments on central bank digital currency and tokenized deposits, were selected. HKMA Assistant Chief Executive Henry Ho emphasized that all applications were reviewed by the same standards; it was coincidental that the approved applicants also had banking backgrounds.
Regarding the sandbox pathway, in March 2024, the HKMA launched a stablecoin issuer sandbox program. Initial participants included JD Chain Technology (Hong Kong), Circle Innovation Technology, and a joint applicant formed by Standard Chartered (Hong Kong), Animoca Brands, and Hong Kong Telecom. After testing cross-border payments, tokenized asset trading, and retail payment scenarios in a controlled environment, only the Standard Chartered-led consortium, operating as Anchorpoint Financial Technology, received a license. JD Chain and Circle Innovation Technology did not make the first batch. This result highlights a key fact: sandbox testing provides valuable "pre-screening" information for regulators, but participation does not guarantee a license.
Another important variable is the influence of mainland regulatory policy. Market information indicates that, given mainland regulators’ restrictive stance on stablecoins, several originally active Chinese-funded applicants were asked to temporarily suspend participation. This explains the collective absence of Chinese-funded institutions from the first batch. Eddie Yue stated that the HKMA will continue to process remaining applications with an open yet cautious attitude, but reiterated that even future license issuances will be very limited.
How 12 Licensed Virtual Asset Trading Platforms Are Reshaping Hong Kong’s Trading Infrastructure
Almost simultaneously with stablecoin licensing, the licensing process for Hong Kong’s Virtual Asset Trading Platforms (VATPs) has advanced even further. As of April 2026, 12 institutions have officially received VATP licenses from the Securities and Futures Commission (SFC), with another 7 applications pending. This means Hong Kong has established a substantive licensed trading infrastructure and is transitioning from the "license issuance phase" to the "market operation phase."
Looking back at the VATP licensing trajectory, a clear market access logic emerges. In 2023, when the SFC first approved VATP licenses, only OSL and HashKey received them, becoming the earliest platforms to offer retail crypto trading services. Licensed entities have since expanded to include HashKey Exchange, HKVAX, HKbitEX, Accumulus, DFX Labs, VDX, and others. In January 2025, PantherTrade, under Futu Securities, was approved, further diversifying market participants. Notably, among the 12 platforms, internet brokerages and traditional financial institutions are increasingly dominant—PantherTrade (Futu), YAX (Tiger International), EXIO (Huasheng Capital, under Sina), and VDX (Victory Securities) are all examples of traditional finance or internet brokerages transitioning to licensed VATPs.
From 2 to 12, the licensed platform matrix now forms a sizable trading infrastructure network. However, there is a clear gap between "licensed" and "fully operational." By Q1 2026, the transitional arrangement for platforms operating as "deemed licensed" has gradually ended, and many platforms have completed the SFC’s second-stage audit and are approved for full operations. Yet, progress varies: some platforms have completed Phase II audits and can operate fully, while others remain in transition. There are also differences in retail client access, OTC service capabilities, and wealth management offerings. In terms of market competitiveness, HashKey and OSL, with their early mover advantage and comprehensive business models, firmly occupy the top tier, collectively holding the core market share. The second tier includes EX.IO, PantherTrade, YAX, DFX Labs, and others, which combine traditional financial backgrounds with rapid compliance and operational readiness. This means Hong Kong’s virtual asset market is characterized not by "homogeneous platform competition," but by deeper differentiation among licensed platforms based on compliance, business scenarios, and liquidity structure—those with stronger compliance foundations, clearer business use cases, and more robust liquidity will attract more users and market share in the next phase.
How Stablecoin Licensing and VATP Licensing Create Synergies
The relationship between stablecoin licensing and VATP licensing is not two separate regulatory tracks, but two interdependent layers of Hong Kong’s virtual asset ecosystem. Stablecoins serve as "settlement currency," VATPs as "trading venues," together forming a compliant loop for capital flow and asset allocation.
From a functional standpoint, licensed VATPs are natural venues for stablecoin applications. The two licensed stablecoin issuers have clear use cases involving tokenized asset trading, using compliant stablecoins as settlement tools for these transactions—creating institutional-level demand within the VATP compliance framework. In other words, compliant stablecoins issued by licensed issuers gain trading liquidity on VATPs, while VATPs enhance trading efficiency and asset allocation by integrating compliant stablecoins. The compliance link is firmly established—regulatory oversight covers stablecoin reserve assets, redemption mechanisms, and disclosure obligations, with strict regulatory constraints underpinning the integration of these infrastructures.
Another important synergy arises as traditional financial institutions enter the market. With the formation of the VATP license matrix, traditional brokerages are upgrading their SFC Type 1 licenses to offer virtual asset trading services—over 42 institutions have been approved to provide virtual asset trading via integrated accounts. These entrants naturally require a compliant settlement currency system, and stablecoin licensing provides the institutional answer. The two regulatory systems create overlapping effects within the same institutional framework: banks’ compliance capabilities cover both stablecoin issuance and virtual asset trading, reducing system-wide coordination costs and compliance friction.
On a broader scale, stablecoin and VATP licensing together form a "standard-setting" force. Global stablecoin transaction volume reached $33 trillion in 2025, up 72% year-on-year. By simultaneously establishing licensing frameworks for stablecoins and trading platforms, Hong Kong effectively connects the entire compliance chain from "currency issuance" to "asset trading." This structure not only provides traditional financial institutions with a practical compliance channel to enter Web3, but also lays the groundwork for cross-border applications of other fiat stablecoins, such as offshore RMB stablecoins. The Financial Services and the Treasury Bureau and SFC are drafting regulatory frameworks covering virtual asset trading, custody, advisory, and management services, aiming to submit legislative proposals to the Legislative Council within 2026.
What Does Bank-Led Stablecoin Issuance Mean for Industry Power Dynamics?
The fact that both initial stablecoin licenses were granted to institutions with banking backgrounds is no accident—it directly reflects Hong Kong’s regulatory design logic. Stablecoin issuance is being treated as a financial service closely aligned with traditional payment infrastructure, not an open innovation field for non-financial enterprises.
From a power shift perspective, this licensing outcome keeps "currency issuance rights" firmly in the hands of traditional banking. HSBC, one of Hong Kong’s three note-issuing banks, entered the space via its own licensed banking entity, planning to integrate its Hong Kong dollar stablecoin directly with PayMe and HSBC Hong Kong’s mobile banking app, giving its stablecoin an immediate base of millions of retail users. Anchorpoint, though formed as a joint venture, is majority-controlled (50.5%) by Standard Chartered Bank (Hong Kong), and combines Hong Kong Telecom’s payment channels with Animoca Brands’ Web3 application scenarios, creating a bank-led, telecom-and-digital-asset-supported operational model. By contrast, JD Chain and Circle Innovation Technology, both sandbox participants since 2024 and each with unique strengths in supply chain payments and cross-border trade, did not make the first batch. HKMA officials described this approach as "steady at the start," aiming to make Hong Kong’s stablecoins credible in the eyes of the public.
This regulatory choice brings at least three structural impacts. First, the credit backing for stablecoin issuance is directly tied to banks’ risk management systems, setting entry thresholds far above what payment or e-commerce-focused non-financial institutions can bear. Second, stablecoin adoption is steered into banks’ existing payment networks and customer relationships, rather than starting from scratch—HSBC integrates stablecoins with PayMe and its banking app, Anchorpoint leverages Standard Chartered’s institutional client network, both avoiding cold-start challenges in promotion. Third, since the number of licensed stablecoins is explicitly limited, bank-affiliated licensees may form exclusive stablecoin application networks rather than an entirely open competitive market.
The HKMA emphasizes that future license issuances will be strictly limited, meaning the "banks control compliant stablecoin issuance" landscape may remain stable for a considerable period. For Web3-native entrepreneurs and non-bank tech giants, the path to stablecoin issuance is now extremely narrow; for traditional banks, this is a strategic window to gain first-mover advantage in digital financial infrastructure.
How Capital Backgrounds of 12 Licensed Platforms Influence Industry Differentiation
Among the 12 licensed VATPs, differences in capital backgrounds not only reflect diverse origins, but also reveal an accelerating trend toward market differentiation—traditional financial institutions’ entry is shifting competition from a "compliance qualification race" to a "resource endowment race."
Looking at capital sources, the 12 licensed VATPs can be grouped as follows. First, HashKey and OSL represent industry-native leaders, being the earliest platforms to serve retail clients and maintaining leading positions with comprehensive business models. Second, internet brokerage branches for virtual assets—PantherTrade (Futu Securities), YAX (Tiger International), EXIO (Huasheng Capital, under Sina)—benefit from mature user traffic, trading technology, and compliance experience. Third, traditional brokerages’ virtual asset units, such as VDX (Victory Securities), and over 42 institutions with upgraded Type 1 licenses offering virtual asset trading via integrated accounts, including Guotai Junan International and Interactive Brokers. Fourth, crypto-native entities with Hong Kong operations, such as Bullish HK Markets. Fifth, multi-background participants like DFX Labs and HKbitEX.
This diversity in capital backgrounds is fundamentally changing competition among licensed platforms. HashKey and OSL, with early mover advantage and comprehensive business models, have nearly formed a duopoly. Behind them, platforms like Futu, Tiger, and Sina’s internet brokerages have the advantage of migrating active user bases and seamlessly integrating into existing product matrices; traditional brokerages like Victory Securities face the challenge of converting existing securities clients into virtual asset trading clients. Differentiation in compliance and operational progress is also evident—some platforms have completed Phase II audits and are fully operational, others remain in transition, and retail client access criteria vary.
It’s important to note that licensing itself confirms applicants’ compliance capabilities and business plans, but does not guarantee trading volume, liquidity, or market share. Market outcomes depend on service quality, product innovation, liquidity depth, and user trust—factors that require a healthy competitive environment. From a long-term industry health perspective, coexistence of diverse capital backgrounds enables differentiated service models, allowing platforms to explore user scenarios and product positioning based on their own strengths, rather than engaging in undifferentiated competition based solely on licensing.
Where Does Hong Kong Stand in Asia’s Regulatory Landscape After Implementing the Licensing Regime?
In the global regulatory race, Hong Kong is now at the forefront in Asia and worldwide. The European Union’s Markets in Crypto-Assets Regulation (MiCA) provides a comprehensive framework covering stablecoins, trading platforms, and asset-referenced tokens, but MiCA is a regionally unified law spanning 27 member states. Singapore’s Payment Services Act covers stablecoin business via payment licenses and brings virtual asset trading under broader anti-money laundering regulations. Hong Kong’s unique approach is to launch a dedicated licensing regime for fiat-backed stablecoins and mandate licensing for virtual asset service providers under the Anti-Money Laundering Ordinance.
Specifically, Hong Kong has institutionalized two key regulatory modules: first, stablecoin issuers must obtain a license from the Financial Secretary under the Stablecoin Ordinance, comply with 100% reserve asset coverage, daily disclosures, and asset segregation requirements; second, VATPs operate under the SFC licensing regime. Hong Kong has also established a new regime for crypto OTC business, filling regulatory gaps in the virtual asset derivatives market. The combined effect of six core regulatory systems is creating an extremely dense compliance network.
Importantly, Hong Kong’s regulatory progress is not isolated legislation, but a systematic, multi-layered legal evolution—covering trading, custody, asset management, investment advice, and OTC transactions. The Financial Services and the Treasury Bureau and SFC are drafting regulations for four types of virtual asset service providers—trading, custody, advisory, and management—with a legislative timeline set for 2026. This means Hong Kong’s virtual asset regulation is not just "covering trading," but is expanding into more business areas.
Comparatively, Hong Kong’s regulatory framework is now the most institutionalized in Asia. No other jurisdiction in Asia has simultaneously implemented dedicated fiat stablecoin licensing, comprehensive VATP licensing, and specialized OTC regulation. Meanwhile, Hong Kong’s listed companies and financial institutions are actively adapting to these frameworks—OSL Group has announced plans to collaborate with licensed stablecoin issuers to build a compliant digital asset ecosystem, and Guotai Junan International’s stock price surged after obtaining a "full virtual asset license." These actions are translating regulatory frameworks into real business activity, giving Hong Kong a truly compliance-driven digital asset ecosystem.
Summary
On April 10, 2026, the HKMA issued the first stablecoin issuer licenses, marking the completion of the world’s first dedicated fiat stablecoin licensing regime from legislation to execution. Out of 36 applications, HSBC and Anchorpoint Financial Technology were the only two approved, with an approval rate of just 5%. The HKMA has made clear that license numbers will remain strictly limited, demonstrating Hong Kong’s highly cautious strategic positioning for stablecoins within the financial system. Meanwhile, the matrix of 12 licensed VATPs has taken shape, with HashKey and OSL leading, and internet brokerages and traditional financial institutions participating according to their respective strengths, forming a diversified competitive landscape. The combined effect of stablecoin and VATP licensing makes Hong Kong one of Asia’s—and the world’s—densest financial centers for compliant virtual asset infrastructure. From asset reserves and redemption restrictions for fiat stablecoins, to client access and information security for VATPs, a compliance system covering the full lifecycle of virtual assets is steadily taking shape.
FAQ
Q: How many stablecoin issuer licenses were granted in Hong Kong’s first batch, and to which institutions?
A: On April 10, 2026, the HKMA issued 2 stablecoin issuer licenses in the first batch: Hongkong and Shanghai Banking Corporation (HSBC), and Anchorpoint Financial Technology Limited, a joint venture by Standard Chartered Bank (Hong Kong), Hong Kong Telecom, and Animoca Brands.
Q: Why were only 2 licenses granted out of 36 applications?
A: The HKMA set extremely high entry standards—minimum paid-up capital of HKD 25 million, non-listed reserve assets, 100% coverage by highly liquid assets, daily reserve disclosures, and redemption within one business day. The HKMA also emphasized that the overall number of stablecoin licenses will be strictly limited.
Q: How many licensed virtual asset trading platforms are currently in Hong Kong?
A: As of April 2026, there are 12 officially licensed VATPs in Hong Kong, with 7 more applications pending. Starting with OSL and HashKey, the list now includes PantherTrade, YAX, EXIO, VDX, and others, covering a range of institution types.
Q: What stablecoins are the first licensed institutions planning to issue, and when will they launch?
A: Both institutions plan to issue Hong Kong dollar-pegged stablecoins in the initial phase. HSBC aims to launch in the second half of 2026, while Anchorpoint expects to begin phased issuance of HKDAP starting in Q2. The exact launch dates depend on completion of technology system testing, risk management implementation, and staffing.
Q: What is the direct value of the stablecoin licensing regime for the Web3 industry?
A: The stablecoin licensing regime provides a compliant, institutional foundation for stablecoin issuance and trust. Licensed stablecoins will be included in bank-level custody and reporting systems, enabling compliant use cases such as cross-border payments, local payments, and tokenized asset trading, and offering fiat-pegged alternatives to the current USD-pegged stablecoin model.
Q: Beyond stablecoin and VATP licensing, what other regulatory measures are expected in Hong Kong?
A: The Financial Services and the Treasury Bureau and SFC are drafting comprehensive regulations for virtual asset trading, custody, investment advisory, and asset management service providers, with plans to submit legislative proposals to the Legislative Council in 2026. This will extend compliance requirements to more business segments in the virtual asset sector.
Q: Do Chinese-funded institutions that did not receive stablecoin licenses have further opportunities?
A: The HKMA states it will continue to process remaining applications with an open yet cautious approach, but the total number of licenses will remain strictly limited. The absence of Chinese-funded institutions in the first batch is also related to shifts in mainland regulatory policy, and future developments will depend on multiple evolving factors.
