Hong Kong will start granting stablecoin issuer licenses in March: Reuters
Analysis
Price Impact
HighThe granting of stablecoin issuer licenses by hong kong, a major financial hub, legitimizes stablecoins as a key component of the global financial system. this development significantly reduces regulatory uncertainty and paves the way for greater institutional adoption and capital inflow into the broader crypto market.
Trustworthiness
HighThe news is reported by reuters, quoting eddie yue wai-man, the chief executive of the hong kong monetary authority (hkma), a direct and authoritative source.
Price Direction
BullishRegulatory clarity from a reputable financial jurisdiction typically fosters investor confidence. as stablecoins are often the primary on-ramp for institutional capital into the crypto ecosystem, increased legitimacy and a clear regulatory framework in hong kong could lead to substantial new investment and adoption, driving a bullish sentiment across the market.
Time Effect
LongWhile only a 'very few' licenses will be issued initially, this marks the beginning of a formal regulatory framework for stablecoins in hong kong. this foundational step will likely lead to broader adoption and integration over the long term as the framework matures and more issuers are onboarded, establishing a lasting positive impact.
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Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Hong Kong will start granting stablecoin issuer licenses in March: Reuters Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority (HKMA), said only a very few stablecoin licenses would be issued initially. By Olivier Acuna | Edited by Jamie Crawley Feb 2, 2026, 12:36 p.m. Make us preferred on Google The Hong Kong financial watchdog says it will issue stablecoin issuer licences in March. (Shutterstock/Modified by CoinDesk) What to know : Hong Kong’s monetary authority plans to issue the city’s first stablecoin issuer licenses in March, but expects to approve only a very small number initially. HKMA chief Eddie Yue said the licensing review process is nearly complete and will prioritize risk management, anti-money-laundering controls and the quality of backing assets. The move comes as stablecoins, now a roughly $300 billion asset class, are projected to grow into the trillions and are seen by some global banks as key to future digital trade settlement. Hong Kong’s financial watchdog will grant a first batch of “very few” stablecoin issuer licenses in March, according to Reuters . Eddie Yue, the chief executive of the Hong Kong Monetary Authority (HKMA), said he expects to issue the first series of stablecoin issuer licences in March, while addressing a Hong Kong Legislative Council meeting on Monday. STORY CONTINUES BELOW Don't miss another story. Subscribe to the State of Crypto Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . However, he said only a "very small number" would be approved initially. Stablecoins, a subset of cryptocurrencies with prices anchored to fiat money like the U.S. dollar, seeing increasing adoption worldwide, as the world's major jurisdictions put regulatory frameworks in place. Last year, stablecoins moved $35 trillion on blockchain rails. Currently a $300 billion asset class, Citi projected stablecoins to become a $1.9 trillion to $4 trillion market . Standard Chartered CEO Bill Winters said that Hong Kong's push into tokenized money and stablecoins could lay the foundation for a new era of digital trade settlement. Yue noted that the review process for applications is nearing completion. The head of the HKMA highlighted that the criteria for stablecoin issuer license approval assessments focused on issues such as risk management, anti-money laundering measures, and the backing assets of the stablecoins. He also said licensed issuers must comply with local regulations for cross-border activities, adding that mutual recognition agreements with other jurisdictions could be explored in the future. Hong Kong Stablecoins