Hong Kong bets on the yuan as its stablecoin push stalls under Beijing’s shadow
- At a Legislative Council briefing on Monday, Hong Kong’s financial secretary laid out an extensive offshore-yuan agenda.
- During the same briefing, stablecoins only received a passing mention, promising a virtual-asset licensing bill later this year.
- HSBC and Anchorpoint, which hold the city’s only two issuer licenses, still have no venue to trade their coins.
During a Legislative Council briefing, Hong Kong’s finance chief laid out a long list of measures to grow the city’s offshore yuan business.
Meanwhile, two banks already hold stablecoin issuer permits, and the finance chief made a promise for a virtual asset licensing bill to come later this year.
Will Hong Kong lawmakers introduce a virtual asset licensing bill?
Christopher Hui, Secretary for Financial Services and the Treasury, told the committee that finance is regarded as Hong Kong’s biggest advantage both in the new First Five-Year Plan, which will run from 2026 to 2030, and the 2026 Policy Address.
Hui announced that the Hong Kong Monetary Authority is in talks with the People’s Bank of China about optimizing their currency swap arrangement. The HKMA will roll out a seven-day offshore yuan liquidity tendering facility, and is studying short-term debt instruments to fill out the offshore yuan rate curve.
HKEX is separately preparing an offshore renminbi bond index to anchor ETFs, and from November, Northbound Bond Connect holdings can be used as collateral across three HKEX clearing houses.
Hong Kong’s offshore yuan lending hit a record 935 billion yuan in 2025, and bond issuance reached 1 trillion yuan for a second straight year. The HKMA has increased its RMB Business Facility to 500 billion yuan and lengthened the loan term to three years.
In his speech, Hui said the government will mainly spend in Hong Kong dollars. Hong Kong will also keep the HK dollar tied to the US dollar rather than switching to a link with the yuan or a floating rate.
Hui also said that the government will table an amendment bill this year to set up a licensing regime covering virtual-asset trading, custody, advisory and management services.
Meanwhile, stablecoin issuing is already running. The Stablecoins Ordinance took effect on August 1, 2025, and drew 36 applications by the end of that September. Cryptopolitan reported in June that from those 36 applications, the first two issuer licenses were awarded.
The Policy Address instructs the Securities and Futures Commission to promote trading of regulated stablecoins on licensed platforms, but barely any infrastructure has been put in place for that.
How are the licensed stablecoin issuers in Hong Kong operating?
HSBC said on September 30 that it had named its forthcoming Hong Kong-dollar coin “HSBC RedCoin.” The company is planning a second-half launch limited at first to its PayMe wallet and mobile app.
The bank’s survey of more than 1,000 customers found 74% could name at least one stablecoin use case, though a quarter wrongly assumed the tokens were government-issued.
The second license went to Anchorpoint Financial, a venture backed by Standard Chartered, HKT and Animoca Brands. In August, it started testing its Hong Kong-dollar token, HKDAP, with a select group of professional investors.
Both licensees are building on Hong Kong-dollar pegs rather than anything tied to the yuan. A February notice from the PBOC and seven other agencies barred unauthorized yuan-linked stablecoins both onshore and offshore, extending China’s long-standing crypto ban and warning that no firm may issue a renminbi-pegged coin abroad without approval.
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FAQs
Who holds Hong Kong's stablecoin issuer licenses?
The HKMA granted its first two licenses on April 10, 2026, to HSBC and to Anchorpoint Financial, a joint venture backed by Standard Chartered, HKT and Animoca Brands, chosen from 36 applicants.
Can Hong Kong license a yuan-backed stablecoin?
No. A February notice from the People's Bank of China and seven other agencies barred unauthorized yuan-linked stablecoins onshore and offshore, and Hong Kong's licensed coins are pegged to the Hong Kong dollar, not the renminbi.
Why can't Hong Kong's licensed stablecoins trade yet?
The 2026 Policy Address directs the Securities and Futures Commission to promote trading on licensed virtual-asset platforms, but no venue, trading pair or start date has been named, and the licensing bill for VA services is only due to be tabled later this year.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience in the crypto space. At Cryptopolitan, Hannah contributes to the news page, reporting and analyzing the latest developments in DeFi, RWA, crypto regulation, AI and frontier tech industries. She graduated from Arcadia university with a degree in Business Administration.
