Hong Kong's financial regulator, the Hong Kong Monetary Authority (HKMA), plans to issue its first stablecoin issuer licences in March, Cointelegraph reported on Sunday, citing Reuters.

HKMA Chief Executive Eddie Yue (余偉文) told a Legislative Council meeting that reviews of licence applications were nearly complete and that only a “very small number” would receive initial approval. At a subsequent news conference, authorities said they are assessing applicants on use cases, risk management, anti-money laundering (AML) controls and the quality of reserve assets.

To obtain a licence, issuers must also comply with Hong Kong rules on cross-border activities. The stablecoin ordinance took effect in August, and issuers must obtain an HKMA licence. Hong Kong Financial Secretary Paul Chan also said on Jan. 21 that stablecoin licences would be issued in the first quarter of 2026. But Yue said many applicants face problems such as insufficient operational readiness, a lack of credible implementation plans and a lack of technical expertise.

As of October last year, 36 institutions had submitted initial licence applications. Standard Chartered's Hong Kong branch and Animoca Brands set up Anchorpoint Financial Limited and applied for a licence. HSBC and Industrial and Commercial Bank of China (ICBC) also expressed their intention to apply. The HKMA did not disclose the list of applicants and said initial approval does not mean an endorsement of a particular business model.