Author: BLack
Eddie Yue Clearly Outlines Timeline for First Stablecoin Launch at LegCo Meeting on May 4
On May 4, 2026, Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), attended the Legislative Council (LegCo) Panel on Financial Affairs meeting. During the meeting, he made significant remarks on core issues such as the advancement of stablecoin regulation and market implementation progress in Hong Kong. For the first time in a public LegCo setting, he formally and clearly announced the specific timeline for the launch of Hong Kong's first batch of compliant stablecoins, marking a critical step from regulatory implementation to substantive market rollout. This also sends a clear policy signal to the global digital finance industry.
At this meeting, Eddie Yue further disclosed the product rollout plans of the two licensed institutions, following the first batch of stablecoin issuer licenses granted by the HKMA on April 10. He explicitly stated that Anchor Digital Fintech Limited and The Hongkong and Shanghai Banking Corporation Limited (HSBC), which received the initial licenses, will launch compliant Hong Kong dollar stablecoins in phases and batches. Specifically, Anchor Digital Fintech plans to launch its Hong Kong dollar-pegged compliant stablecoin "HKDAP" in phases, starting from the second quarter of 2026; HSBC will officially launch its Hong Kong dollar stablecoin in the second half of 2026. Thus, Hong Kong's first batch of regulated stablecoins is set to be released to the market from mid-2026 to the latter half of the year.
During the meeting, Eddie Yue elaborated that the two licensed institutions must still complete a series of rigorous preparatory work before officially launching the stablecoins. This includes comprehensive testing of technology platforms and trading systems, full implementation of risk control measures across the entire process, deployment of professional operational personnel, and the establishment of a closed-loop compliance process. The HKMA will supervise the progress throughout the process to ensure safe and stable operation upon the stablecoin launch. He emphasized that the launch of the first batch of stablecoins adheres to the core principle of "starting steadily," with all advancement efforts predicated on preventing financial risks and protecting user rights, while curbing market speculation and reinforcing the safety baseline for Hong Kong's digital finance development.
Regarding regulatory approach and subsequent planning, Eddie Yue, in response to further inquiries from LegCo members, pointed out that Hong Kong's stablecoin regulation has always maintained a prudent yet open attitude. The issuance of only two licenses in the first batch is precisely to strictly control market entry thresholds and select high-quality institutions with strong capital strength, mature risk control systems, and clear application scenarios. The clear announcement of the timeline is both a formal response to market expectations and a pragmatic measure by the HKMA to steadily promote digital finance innovation. He also explicitly stated that the HKMA will only consider issuing additional stablecoin licenses after the first batch of stablecoins is officially launched and market operations are evaluated. Future license issuance will continue to maintain high thresholds, with the overall number kept limited to avoid vicious market competition and ensure the sustainable development of the industry.
From the perspective of product application scenarios, the stablecoins launched by the two institutions both focus on real economy needs but have different areas of emphasis. Anchor Digital Fintech will adopt a B2B2C business model, leveraging partner distribution channels to promote the stablecoin in cross-border payments and local retail payment scenarios. HSBC will seamlessly integrate its Hong Kong dollar stablecoin into two mainstream digital platforms, PayMe and the HSBC Hong Kong mobile banking app, covering diverse scenarios such as personal daily payments, merchant settlements, and tokenized asset transactions. HSBC also commits to backing the stablecoin with sufficient high-quality liquid assets as reserves and strictly adhering to the highest compliance standards, including anti-money laundering and customer identity verification.
Eddie Yue's clear announcement of the stablecoin launch timeline at the LegCo meeting this time not only provides a clear time node for the development of Hong Kong's stablecoin market but also further solidifies Hong Kong's status as a global digital finance hub. Since the Stablecoins Ordinance took effect in 2025, Hong Kong has established a globally leading stablecoin regulatory framework. The announcement of this timeline completes the key loop from regulatory rule-making to substantive market implementation, building a compliant bridge between traditional finance and digital asset integration. It also provides a "Hong Kong solution" for global stablecoin regulation and development, helping Hong Kong seize a leading position in the global digital finance competition.
