Stablecoin Issuer License
HKMA-supervised license for issuing fiat-referenced stablecoins with 100% reserve backing.
Stablecoins Ordinance (enacted August 1, 2025), HKMA supervision
Capital Required
HKD 25,000,000 paid-up + HKD 3,000,000 liquid capital + 12 months expenses
Timeline
6-12 months
Fees
HKD 200,000-500,000 estimated
Regulatory Body
Securities and Futures Commission (SFC) / Hong Kong Monetary Authority (HKMA)
Legislative Framework
Securities and Futures Ordinance (SFO), Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), Stablecoins Ordinance 2025
Last updated: August 2025
Key Requirements
Minimum HKD 25,000,000 paid-up share capital and HKD 3,000,000 liquid capital continuously
100% reserve backing in corresponding fiat currency held in segregated accounts with HKMA-approved banks
One-business-day redemption guarantee at par-value (1:1 ratio) with documented procedures
Board composition with at least one-third independent non-executive directors per governance
Weekly independent audits of stablecoin reserves with certification by HKMA-approved auditors
Restricted business model prohibited from investing reserves or providing credit using reserves
Smart contract code audits by independent security firms with documented remediation
Clear disclosure documentation specifying reserve composition, redemption terms, and regulatory status
Application Process
Prepare comprehensive stablecoin issuer application to HKMA with detailed design and reserve policy
Submit organizational structure with independent director CVs and board composition documentation
Establish reserve account with HKMA-approved custodian bank and obtain custody agreement
Provide detailed reserve management procedures, weekly audit protocols, and auditor letters
Submit smart contract documentation with audit reports and remediation evidence
HKMA review and approval following assessment of reserve adequacy and governance framework
Expected Total Timeline
6-12 months
Ongoing Obligations
After obtaining your Stablecoin Issuer License, these are the continuing compliance requirements you must maintain.
Weekly independent audits of stablecoin reserves with reports to HKMA monthly and public disclosure
Quarterly reporting of stablecoin circulation, redemption activity, and reserve composition
Maintain 100% segregated reserves in HKMA-approved banks with monthly custodian verification
Immediate notification to HKMA within 24 hours of reserve shortfalls, failures, or incidents
Annual fit-and-proper assessments for board directors and senior management with updates
Annual smart contract security audits with documented remediation submitted to HKMA
Cost Summary
Capital Requirement
HKD 25,000,000 paid-up + HKD 3,000,000 liquid capital + 12 months expenses
Application & Licensing Fees
HKD 200,000-500,000 estimated
Jurisdiction Setup Cost
$120,000-$350,000
Annual: $100,000-$300,000
Other Hong Kong Licenses
Explore other license types available in Hong Kong.
VATP License
Type 9 Asset Management License
Type 1 Dealing in Securities
Money Service Operator License
Need help with Stablecoin Issuer License?
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