Hong Kong Limits Stablecoin Licenses Amid Intense Competition

Hong Kong is gearing up to issue fewer than 10 stablecoin licenses, attracting applications from major players like JD.com, Ant Group, and Standard Chartered by August 2025.

The initiative aims to leverage stablecoins for cross-border payment efficiency, though critics argue its cost-benefit is overstated.

Fewer Than 10 Licenses: Intense Battle Among China’s Financial Giants

Hong Kong authorities are poised to issue stablecoin licenses, attracting up to 40 applications primarily from notable Chinese financial and tech firms. The Monetary Authority of Hong Kong plans to enforce stringent anti-money laundering regulations, reflecting Christopher Hui’s statement about expected approvals to emerge by end-2025.

Market expectations center on leveraging HKD and CNH stablecoins to enhance cross-border transactions. While the actual number of licenses will be minimal, intense competition continues among applicants actively recruiting blockchain talent.

The Monetary Authority is consulting the market to implement the regulatory guidelines, which are expected to be announced within this month and will involve anti-money laundering and other related requirements… the number of licenses will be a single digit.
— Christopher Hui, Secretary for Financial Services and the Treasury, Hong Kong

Stablecoin Regulation Expected to Boost DeFi Liquidity

Did you know? In a similar case, Singapore limited its stablecoin licenses, boosting institutional trust but leading to limited issuer expansion.

According to CoinMarketCap, Ethereum (ETH) is trading at $2,575.20 with a market cap of $310.87 billion as of July 8, 2025. Its 24-hour trading volume reached $16.66 billion, with recent gains of 1.89%. ETH shows a 72.05% increase over 90 days.

The Coincu research team believes that Hong Kong’s stablecoin licensing approaches could attract more institutional players into DeFi markets. The emphasis on stablecoin regulation suggests increased liquidity and diversified financial products.