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Hong Kong set to grant initial stablecoin licenses in March, according to the Financial Secretary.
Hong Kong is set to start granting a limited number of stablecoin licenses to firms with credible business frameworks and robust compliance, according to Paul Chan Mo-po.
Hong Kong Financial Secretary Paul Chan Mo-po (Michael Perini/CoinDesk)
HONG KONG — Hong Kong is prepared to commence the issuance of its initial stablecoin licenses next month, the Financial Secretary of the Special Administrative Region stated on Wednesday.
Initially, Hong Kong will provide a limited number of licenses, as mentioned by Paul Chan Mo-Po during his speech at CoinDesk’s Consensus Hong Kong conference on Wednesday.
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"In granting our licenses, we will ensure that licensees possess innovative use cases, a credible and sustainable business model, as well as strong regulatory compliance capabilities," he stated.
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He also noted that Hong Kong is in the process of finalizing its licensing framework for custodian service providers and aims to introduce relevant legislation this summer.
"Along with the existing framework, this will guarantee that our regulatory regime thoroughly encompasses the entire digital asset ecosystem," he said.
Chan elaborated on three significant trends currently developing: the rise of tokenized products in the real world, the increasing convergence of decentralized finance (DeFi) with traditional finance, and the deepening connections between artificial intelligence (AI) and digital assets.
"Tokenization initiatives are transitioning from proof of concept to real-world implementation, bolstered by greater institutional adoption; government bonds, money market funds, and other conventional financial instruments are progressively being issued on-chain, utilizing digital ledgers to improve settlement efficiency, facilitate fractional ownership, and unlock liquidity in assets that have historically been less liquid."
He also highlighted the expanding growth in AI.
"As AI agents gain the ability to make and execute decisions autonomously, we might start witnessing the early stages of what some refer to as the machine economy, where AI agents can hold and transfer digital assets, pay for services, and interact with each other on-chain," Chan remarked.
