Hong Kong stablecoin license issuance delayed, hitting obstacles for HKD stablecoin regulation rollout?

Gate News reports: the Hong Kong dollar stablecoin licensing rollout plan that was originally set to begin in March 2026 has been delayed, and as of now no organization has received approval. Previously, in February, Hong Kong Financial Secretary Paul Chan publicly said that the relevant licenses would take effect in March, with the goal of helping Hong Kong develop into a global, regulated stablecoin and asset tokenization hub. However, actual progress has not met expectations, and the market widely believes the timeline will be pushed back to April or later.

Paul Chan emphasized that, during the approval process, the regulatory authorities focus on whether applicants have clear use cases, a sustainable business model, and a robust compliance framework—an indication that the bar for stablecoin issuance is relatively high. Industry insiders believe this cautious approach helps reduce systemic risk, but in the short term it may affect the pace at which the industry moves forward.

According to earlier media disclosures, HSBC Bank, Standard Chartered Bank, and a joint venture related to Animoca are viewed as potential first-round licensable entities. Since HSBC and Standard Chartered themselves play the role of Hong Kong dollar banknote-issuing banks, their involvement in building a stablecoin system is seen as symbolically significant, further strengthening the link between stablecoins and the traditional financial system.

From an institutional perspective, Hong Kong’s current monetary system already has a “stable-like mechanism.” The banknote-issuing banks are required to deposit U.S. dollar reserves with the Exchange Fund at a fixed exchange rate, a structure that shares similarities with the asset-peg logic behind stablecoins. The CEO of the Hong Kong Monetary Authority (HKMA), Eddie Yue, had also previously noted that stablecoins can be viewed as an evolutionary form of blockchain-based “private money.”

Although the regulators have not disclosed the specific reasons for the delay, the official response says the licensing work is still under way and that progress will be announced at an appropriate time. For the market, the rollout of Hong Kong dollar stablecoins is not only tied to the competitive landscape for regional digital finance, but could also become an important bridge connecting on-chain assets with traditional capital systems.