Hong Kong’s New Stablecoin Ordinance: Implications for Local Banks

Hong Kong’s newly introduced stablecoin ordinance may increase pressure on local banks, particularly in the digital payments sector, but it could also present new opportunities—especially in wealth management.

Stablecoins issued under the new regime are expected to heighten competition in wholesale payments by offering advantages in both cost and transaction speed. In response, local banks are likely to seek participation in the stablecoin ecosystem to mitigate the risk of disintermediation.

By offering stablecoin-linked products or other digital assets, Hong Kong banks may be able to attract customers both domestically and internationally—particularly those seeking offshore crypto exposure.

Market interest in the initiative is reportedly “very strong.” The Hong Kong Monetary Authority (HKMA) has indicated that it plans to issue only a limited number of licenses to stablecoin issuers. Initial licensees are expected to be large banks and major tech firms with significant resources and advanced technological capabilities.

The HKMA has urged stakeholders to exercise caution in public communications to avoid the risk of misinterpretation or the creation of unrealistic expectations. As of now, no licenses have been issued. Falsely claiming to be a licensed issuer or applicant constitutes an offence.

For verification, the public is advised to consult the official list of licensed stablecoin issuers.