Hong Kong could grant its first stablecoin licenses this year, although the number is expected to be limited, Christopher Hui, Secretary for Financial Services and the Treasury, said in an interview with local media Ming Pao.
The new regulatory framework, which will come into effect in August, aims to approve a small number of issuers by the end of the year.
Hui emphasized that stablecoins must address real-world challenges, such as cross-border payments in regions with underdeveloped financial systems.
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Although the rules were initially designed for stablecoins pegged to the Hong Kong dollar, discussions around offshore yuan-backed stablecoins are gaining traction, with companies such as JD.com and Ant Group pushing for approval.