Stablecoins in Hong Kong in brief
A stablecoin in Hong Kong is now a licensed product. Since 1 August 2025 the Stablecoins Ordinance (Cap. 656) has required an HKMA licence to issue a fiat-referenced stablecoin in the city, or to issue a Hong Kong dollar stablecoin anywhere. The HKMA granted the first two licences on 10 April 2026, to Anchorpoint and HSBC, and only coins from licensed issuers may be offered to retail users.
For you, that has three practical effects. Hong Kong dollar stablecoins backed one-for-one by reserves are arriving through banks and licensed exchanges. Offshore dollar tokens such as USDT and USDC remain legal to hold but can no longer be marketed to the retail public here. And the grey-market trade in cash-for-USDT at street-level shops is on shakier legal ground than it was two years ago. This page explains the law, who holds a licence, what HKDAP and HSBC RedCoin are, and how the HKMA’s e-HKD and tokenised deposit projects fit alongside.
The Stablecoins Ordinance: what the law covers
The Stablecoins Bill reached the Legislative Council in December 2024, passed on 21 May 2025 and commenced on 1 August 2025. It was the HKMA’s answer to a question the city had debated since the 2022 Policy Statement: if dollar tokens are going to move through Hong Kong’s financial system anyway, who should stand behind them?
The Ordinance bites in three situations. You need an HKMA licence if you issue a fiat-referenced stablecoin in Hong Kong, if you issue a stablecoin referencing the Hong Kong dollar from anywhere in the world, or if you actively market the issuance of such coins to the Hong Kong public. A "fiat-referenced stablecoin" is one that aims to hold a stable value against one or more official currencies, so algorithmic tokens pegged to nothing are not what this law licenses.
The second half of the law deals with distribution. Only stablecoins issued by an HKMA licensee may be offered to the retail public, and only a short list of intermediaries may make that offer: the licensed issuers themselves, SFC-licensed corporations including licensed trading platforms, and authorised institutions — banks. Pre-existing issuers were given a six-month transition. You can read the text on Hong Kong e-Legislation.
Stablecoin Hong Kong licence requirements
A stablecoin licence is closer to a narrow banking licence than a crypto permit. The core requirements, summarised from the Ordinance and HKMA guidance:
| Requirement | What the HKMA expects | Why it matters to holders |
|---|---|---|
| Capital | Non-bank issuers: paid-up share capital of at least HK$25 million | A buffer before holders take losses |
| Reserves | High-quality, highly liquid assets at least equal to the coins in circulation, fully backed and segregated from the issuer’s own money | Your coin has a claim on real assets if the issuer fails |
| Redemption | Holders may redeem at par value within a reasonable time, without unreasonable conditions or fees | HK$1 in should mean HK$1 out |
| Governance and AML | Fit-and-proper management, risk controls, full KYC and Travel Rule compliance | Transfers carry identity data, like a bank payment |
| Local presence | Licensed entity and key personnel in Hong Kong, subject to HKMA supervision | A regulator you can complain to |
There is no interest. Licensed issuers may not pay holders a return on stablecoins, which is one reason banks see them as a payments tool rather than a deposit substitute. The HKMA has also said openly that it expects to grant licences sparingly: of 36 applications it received, it told legislators in June 2026, future approvals would be "very limited".
HKMA stablecoin regime: from sandbox to first licences
The HKMA ran a stablecoin issuer sandbox from March 2024 to test business models before the law existed. On 18 July 2024 it named the first three participants: JINGDONG Coinlink Technology Hong Kong, the fintech arm of JD.com; RD InnoTech, which tested a Hong Kong dollar coin called HKDR; and a consortium of Standard Chartered Bank (Hong Kong), Animoca Brands and HKT.
Sandbox participation was never a promise of a licence, and so it proved. When the HKMA granted the first licences on 10 April 2026, only one sandbox group was among them — the Standard Chartered consortium, now operating as Anchorpoint Financial Limited — alongside HSBC, which had not been a named sandbox participant. Both licences took effect the same day, and both issuers said they would start with Hong Kong dollar coins. You can check the current position on the HKMA register of licensed stablecoin issuers.
HKD stablecoins: HKDAP and HSBC RedCoin
Anchorpoint’s HKDAP
Anchorpoint moved first. Its coin, HKDAP — "HKD at par" — entered an institutional beta phase on 12 August 2026, with HashKey Exchange and OSL as the initial distributors, according to CoinDesk. That choice of distributor is not an accident: under Cap. 656 and the SFC’s November 2025 circular, licensed trading platforms are exactly the kind of intermediary allowed to put a licensed stablecoin in front of users. Retail access was targeted "as early as end-2026". If you already have an account, our reviews of HashKey Exchange and OSL are the place to watch for the switch-on.
HSBC RedCoin
HSBC took a different road, through its own consumer channels. On 30 September 2026 it named its coin HSBC RedCoin and said it would launch in the second half of 2026, offered at first only through PayMe and the HSBC HK mobile app. The initial use cases are deliberately mundane — person-to-person transfers and paying merchants — with corporate and institutional uses to follow. As of the day it was named, HSBC had not given a precise live date, so treat any "available now" claim with care until it appears in the app itself.
Why would anyone want a Hong Kong dollar coin when FPS already moves money instantly? The pitch is programmability and reach: a HKD token can settle on a blockchain at any hour, be used in smart contracts, and move to a crypto exchange or a merchant abroad without a correspondent bank. For an ordinary resident paying a restaurant bill, FPS and Octopus will keep doing the job; the stablecoin matters more at the boundary between bank money and crypto.
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USDT, USDC and the OTC shops after 1 August 2025
Tether’s USDT and Circle’s USDC are the most traded stablecoins in the world, and neither issuer holds an HKMA licence. Under Cap. 656 that means nobody may offer them to the Hong Kong retail public. The SFC’s November 2025 circular opened the retail door only to licensed stablecoins.
The street felt it first. After the Ordinance took effect, some OTC shops closed or suspended USDT and USDC, including shops in Admiralty and Tsim Sha Tsui, while others kept trading "by private inquiry" with no prices posted, according to Yahoo Finance Hong Kong reporting. Cash-for-USDT is therefore a legally exposed activity even before the separate virtual asset dealer regime arrives, and that bill — still not gazetted at the end of September 2026 — will close the remaining gap with no transitional period. Our directory of crypto shops flags each shop’s stance, and the OTC guide explains how the larger desks handle this.
If what you actually need is to turn USDT into Hong Kong dollars, we cover the routes, spreads and legal trade-offs in a separate USDT to HKD conversion guide, so we will not repeat them here. For general cashing-out, see how to sell crypto in Hong Kong.
e-HKD crypto confusion, Project Ensemble and tokenised deposits
Hong Kong is running three digital-money experiments at once, and they are easy to confuse.
The e-HKD is the HKMA’s research into a central bank digital currency. After a Phase 2 pilot with 11 groups, the HKMA reported on 28 October 2025 that a retail e-HKD is not an immediate priority and it would concentrate on wholesale uses, such as settling tokenised assets between institutions. So if a site offers you "e-HKD crypto", be suspicious: there is no retail e-HKD to buy.
Tokenised deposits are ordinary bank deposits represented on a ledger — still a bank liability, still covered by the bank’s obligations. Project Ensemble, launched in March 2024, is the HKMA’s testbed for them, with a sandbox from August 2024. Its EnsembleTX pilot, launched 13 November 2025 and running through 2026, handles real-value tokenised-deposit transactions, with interbank settlement first over the HKD real-time gross settlement system and later in tokenised central bank money around the clock. HSBC has reported completing the first live cross-bank transaction on it.
Licensed stablecoins sit between the two: private money like a deposit, but bearer-style tokens that can leave the banking system and circulate on public blockchains. For the wider licensing picture — SFC platforms, AML rules and what else is changing — see our overview of Hong Kong crypto regulation.
What it means for you
If you only use stablecoins to move money between exchanges, not much changes today, apart from where you can buy them. If you want a Hong Kong dollar token, wait for HKDAP or HSBC RedCoin to reach retail through a licensed exchange or HSBC’s apps rather than buying something that claims to be one. Before you use any stablecoin, ask three questions: who is the issuer, where are the reserves, and how do I redeem? A licensed HKD coin answers all three on the HKMA register. An offshore dollar token answers them in its own jurisdiction’s terms — which may be perfectly adequate, but is not Hong Kong’s protection.
Finally, record every conversion. Swapping crypto into or out of a stablecoin is a disposal like any other trade, and if your activity looks like a business the Inland Revenue Department may treat the gains as profits. Our crypto tax guide explains the test. And if you are comparing where to hold stablecoins at all, the list of SFC-licensed exchanges shows which platforms are cleared to distribute licensed coins.
Starting with a small amount?
An online account with card top-ups lets you test the process with a few hundred dollars before committing more.
Operating since 2013 · Card & Apple Pay · Registered in the US, Gibraltar and Spain · Why this pick?Frequently asked questions
Are stablecoins legal in Hong Kong?
Yes. Holding, sending and receiving stablecoins is legal for individuals. Since 1 August 2025 the Stablecoins Ordinance (Cap. 656) controls who may issue fiat-referenced stablecoins and who may offer them to the public: only HKMA-licensed issuers’ coins may be offered to retail, and only through licensed issuers, SFC-licensed firms or banks.
Who has a stablecoin licence in Hong Kong?
Two issuers as of September 2026. On 10 April 2026 the HKMA licensed Anchorpoint Financial Limited, a joint venture of Standard Chartered Bank (Hong Kong), HKT and Animoca Brands, and The Hongkong and Shanghai Banking Corporation (HSBC). Both are issuing Hong Kong dollar stablecoins first. The HKMA received 36 applications and says further licences will be very limited.
Can I still buy USDT in Hong Kong?
You can hold and transfer USDT legally, but USDT and USDC are not issued by HKMA licensees, so they may not be offered to the Hong Kong retail public. Several OTC shops paused USDT sales after August 2025. For converting USDT to Hong Kong dollars, see our dedicated USDT to HKD guide, which compares the legal routes.
What is HKDAP?
HKDAP ("HKD at par") is the Hong Kong dollar stablecoin issued by Anchorpoint, the Standard Chartered, HKT and Animoca Brands joint venture. Its institutional beta launched on 12 August 2026 with HashKey Exchange and OSL as initial distributors, according to CoinDesk. Retail availability was targeted for as early as end-2026.
What is HSBC RedCoin?
HSBC RedCoin is the name HSBC gave its Hong Kong dollar stablecoin on 30 September 2026. HSBC says it will launch in the second half of 2026 through PayMe and the HSBC HK mobile app, starting with person-to-person and person-to-merchant payments before corporate uses. A precise live date had not been announced.
Is the e-HKD the same as a HKD stablecoin?
No. The e-HKD is a potential central bank digital currency researched by the HKMA; a HKD stablecoin is issued by a licensed private company and backed by reserves. After its Phase 2 pilot report on 28 October 2025, the HKMA said a retail e-HKD is not an immediate priority and it will focus on wholesale uses.
How much capital does a stablecoin issuer need in Hong Kong?
A licensed issuer that is not a bank needs paid-up share capital of at least HK$25 million under the Stablecoins Ordinance. It must also hold high-quality reserve assets at least equal to the coins in circulation, keep them segregated, and let holders redeem at par value within a reasonable time without unreasonable fees.
Sources & further reading
- HKMA — Grant of stablecoin issuer licences · 10 Apr 2026
- HKMA — Register of licensed stablecoin issuers · accessed Sep 2026
- Cap. 656 — Stablecoins Ordinance · in force 1 Aug 2025
- HKMA — Stablecoin issuer sandbox participants · 18 Jul 2024
- LegCo question: stablecoin licence applications · 10 Jun 2026
- SFC — Circular 25EC57 on expanding VATP products · 3 Nov 2025
- HKMA — e-HKD Phase 2 report · 28 Oct 2025
- HKMA — EnsembleTX pilot launch · 13 Nov 2025
- HSBC — HSBC names stablecoin "HSBC RedCoin" · 30 Sep 2026
- CoinDesk — Anchorpoint launches HKD stablecoin · 12 Aug 2026
Stablecoins are a tool, not a savings account
Whether you use a licensed HKD coin or an offshore dollar token, know who issues it and how you would redeem it.
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