HKD stablecoins advance as Hong Kong refines licensing

Lee commits to Hong Kong as global digital-asset innovation hub

Secretary Lee Ka-chiu used his Opening Remarks at Consensus hong kong to reaffirm the government’s commitment to building Hong Kong into a global hub for digital‑asset innovation. He positioned the city’s approach as open to innovation with safeguards.

The remarks signal intent to align licensing, stablecoin oversight, and tokenisation under a predictable, risk‑based framework that balances market development with investor protection. The message ties Hong Kong’s Web3 agenda to regulated, real‑economy adoption.

Why this matters: Hong Kong digital-asset strategy, licensing regime, HKD stablecoins, tokenisation

Policy-to-market alignment matters because predictable rules anchor institutional participation and real‑economy use cases. Stablecoins, including prospective HKD‑backed variants, and tokenised assets are positioned as rails for efficient settlement.

Regulatory officials have emphasized outcomes‑based parity across products before scaling retail access and cross‑border pilots. “same activity, same risk, same regulation,” said Chris Hui, Secretary for Financial Services and the Treasury.

Legal commentary indicates framework refinements for stablecoins, tokenisation, and custody under an updated policy blueprint, as reported by IFC Review. These updates are intended to provide clearer pathways for institutional participation.

Banks are preparing for tokenised money and on‑chain settlement pilots. Bill Winters, CEO, said Standard Chartered views HKD stablecoin experiments as building blocks for cross‑border trade on digital rails.

Licensed exchanges are adapting to guardrails that build trust while shaping addressable markets. As reported by the Financial Times, HashKey Exchange has highlighted that certain restrictions could limit access for some overseas clients.

At the time of writing, OSL Group (0863.HK) traded at 16.290 HKD, down 2.80%, based on data from HKSE (delayed quote). This snapshot offers context on sector volatility during policy roll‑outs.

Risks, constraints, and regulatory guardrails to watch

Post-JPEX and scam alerts: why investor protection drives policy

Investor protection is defining policy after the JPEX fraud case underscored the need for clear rules and enforcement. The focus remains on licensing, transparent disclosures, and fraud deterrence.

Authorities continue to counter impersonation and fraud. On March 6, 2025, the Hong Kong government warned of a fake “National Hong Kong Coin” promotion, urging vigilance against false claims. The episode reinforces the emphasis on verification and compliance.

Overseas access, compliance burdens, and RWA liquidity constraints

Jurisdictional limits and onboarding requirements may slow scale for platforms serving non‑local users; HashKey Exchange has flagged that these constraints could affect early liquidity formation. Compliance readiness will remain a gating factor for growth.

Tokenised real‑world assets face secondary‑market depth challenges; an academic paper on arXiv notes low participation remains a common friction jurisdictions must address alongside safeguards. Depth may improve as regulated pilots mature and secondary venues develop.

FAQ about Hong Kong digital-asset strategy

How will Hong Kong regulate stablecoins, including HKD-backed stablecoins, under its licensing regime?

Stablecoin oversight will be licensing-based, covering issuers, reserves, disclosure and redemption, guided by “same activity, same risk,” with HKD‑backed models operating under prudential supervision and sandboxed pilots.

What is the role of tokenised assets in Hong Kong’s strategy and how will they improve cross-border settlement?

Tokenisation anchors settlement efficiency: programmable DvP, atomic transfers and faster reconciliation; pilots could bolster cross‑border trades by standardising on‑chain cash and asset legs under regulated market infrastructure.