The Hong Kong Monetary Authority’s call for stablecoin issuers has triggered a modern-day gold rush, with 77 diverse firms staking a claim. However, the regulator has embarked on a deliberate winnowing process designed to separate truly viable projects from mere aspirants in a bid to ensure market stability.
Summary
- Hong Kong Monetary Authority received 77 expressions of interest for stablecoin licenses by August 31.
- Applicants include banks, fintech firms, asset managers, Web3 startups, and state-owned enterprises.
- No licenses will be issued until 2025 as regulators carefully vet submissions.
According to a September 1 local report by The Standard, the HKMA confirmed it received 77 expressions of interest for its upcoming stablecoin issuer licensing regime by the August 31 deadline.
The applicant pool is not just the usual crypto suspects; it is a broad consortium of traditional banks, major payment processors, asset managers, and even Web3 startups, all vying for a seat at the table.
In a move that underscores the sensitivity of the process, the regulator immediately clamped down on speculation, refusing to name any applicants and bluntly stating that an expression of interest is merely a first step, far from a guarantee of approval.
Big names circle the stablecoin gate
While the HKMA maintains a tight lid on the official list of applicants, previous reporting points to a roster of heavy hitters. The interest ranges from global banking institutions like Standard Chartered to fintech behemoths such as Ant Group.
Perhaps most telling is the involvement of state-owned enterprises like the energy giant PetroChina, which has publicly disclosed feasibility studies on using stablecoins for cross-border settlements. This diverse field underscores a critical point: the race is not just about crypto-native firms; it is about who will control the next evolution of digital payment infrastructure for international trade.
Despite this rush of interest, Hong Kong’s licensing pipeline has been effectively frozen. The Stablecoin Ordinance took effect on Aug. 1, yet the HKMA has already cautioned that approvals are unlikely until sometime in 2025.
Deputy CEO Darryl Chan Wai-man has publicly attributed this timeline to the “heavy workload” of vetting the complex applications, a task he described as requiring immense due diligence.
The authority appears to be methodically sifting through the 77 expressions of interest, a process designed to be a stringent filter, with the goal being to ensure that the first entities to receive a license are not only technically proficient but also possess bulletproof reserve backing, impeccable anti-money laundering protocols, and operational resilience.