Hong Kong Set to Unleash First Stablecoin Licenses Next Month in 2026 Budget New

• Hong Kong to issue first stablecoin licenses next month
• New crypto dealer and custodian rules coming later
• Liquidity and tokenization plans expand under 2026 budget

Hong Kong will issue its first batch of stablecoin issuer licenses next month, marking a major step outlined in the city’s 2026 to 2027 budget. Financial Secretary Paul Chan confirmed the timeline during his annual budget speech. He said regulators have already put a licensing regime for stablecoin issuers in place.

Authorities expect the first approvals for fiat referenced stablecoin issuers in March. Chan explained that regulators will help licensed issuers explore practical use cases. However, they will require strict compliance and strong risk controls. Consequently, Hong Kong is moving from policy design to active implementation.

Besides stablecoin oversight, the government plans to widen its regulatory reach this year. Officials will introduce a bill covering digital asset dealers and custodian service providers. Digital asset dealing includes the regulated buying and selling of virtual assets as a business. This definition captures over the counter trading activities operating within the city.

Moreover, the proposed legislation will extend supervision beyond trading platforms and stablecoin issuers. Regulators aim to build a clearer framework for custody and brokerage services. Hence, the new measures will strengthen market structure as more participants enter the sector.

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Liquidity Drive and Tokenization Plans Gain Momentum

Liquidity now stands at the center of Hong Kong’s crypto agenda. Chan said the Securities and Futures Commission will take further steps to improve market depth. Additionally, the regulator will broaden product offerings for professional investors.

The SFC will also establish an accelerator to speed up innovation within the market. Earlier this month, SFC Executive Director of Intermediaries Eric Yip said the agency will prioritize market quality in 2026. He stressed the importance of strengthening price discovery and building investor confidence through responsible product expansion.

At the same time, tokenization remains a strategic focus. Chan announced that authorities will clarify that debenture holder registers may be maintained on blockchain networks. The government will also explore electronic signatures for tokenized bond issuance.

Meanwhile, the Hong Kong Monetary Authority will continue upgrading its EnsembleTX platform. The system enables continuous settlement of tokenized deposits and digital assets. Furthermore, officials will amend the Inland Revenue Ordinance over the next two years. These changes will align Hong Kong with the OECD Crypto Asset Reporting Framework and updated global reporting standards.

Conclusion

Hong Kong’s move to unleash its first stablecoin licenses next month signals a coordinated effort to combine regulatory expansion, deeper liquidity, and tokenization initiatives within a structured digital asset framework.

Also Read: Crypto Update: Bitcoin BTC, Ethereum ETH, Solana SOL Lead Sharp Market Rebound

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