Hong Kong expects to launch its first regulated stablecoins between mid‑2026 and late‑2026 after two bank‑backed issuers secured licences earlier this year. The Hong Kong Monetary Authority granted the licences to the two institutions in April 2026, as reported in a written reply by Secretary for Financial Services and the Treasury Christopher Hui to the Legislative Council. Under the Stablecoins Ordinance, which took effect in August 2025, issuers must back tokens with eligible reserve assets and keep those reserves with Hong Kong banks while remaining under continuous regulatory supervision. The HKMA said the reserve requirements include bank deposits and high‑quality liquid debt securities and that it will monitor the impact of stablecoin issuance on bank deposits, lending activity, and overall financial stability. Regulators are also studying broader stablecoin effects through participation in Bank for International Settlements research and are assessing cross‑border payment use cases involving central bank digital currency networks, tokenized deposits, and related infrastructure. A wholesale e‑HKD pilot for after‑hours margin payments is under test, pending regulatory approval and operational readiness. The government has begun enforcement actions against entities offering unregulated stablecoins, issuing guidance on legal requirements and monitoring compliance, with possible referrals to the Police or the Department of Justice. The Securities and Futures Commission shares information with the HKMA when unregulated stablecoins are marketed to Hong Kong residents. Legislation covering virtual asset trading, custody, advisory, and management service providers will be introduced later this year to create a comprehensive framework. Officials said regulated stablecoins are intended for use as payment instruments rather than speculative investments, and warned that acquiring unregulated stablecoins through unofficial channels carries risk. Public education campaigns and updated lists of licensed entities will continue as the regulatory environment evolves.