Hong Kong's e-HKD: Building a Digital Gateway Connecting China with International Markets

Hong Kong is preparing to introduce stricter regulations for digital assets as the

moves ahead with plans to establish formal guidelines for stablecoins linked to the Hong Kong dollar. The Hong Kong Monetary Authority (HKMA) has stated that for the possible retail launch of the digital Hong Kong dollar (e-HKD) will be completed by mid-2026. At the same time, licensing standards for stablecoins, whether issued locally or internationally, are under review. These initiatives are part of Hong Kong’s broader strategy to strengthen its role as a global financial center and to coordinate with China’s (2026–2030), which focuses on high-quality economic growth and technological progress.

The HKMA’s second phase report on the e-HKD pilot detailed that 11 projects—covering areas like tokenized asset settlement, programmable payments, and offline transactions—have further developed the city’s digital currency ecosystem. Despite these advancements, the HKMA observed that current interest in e-HKD is mainly in wholesale scenarios, such as cross-border payments and trade settlements. To encourage wider use, the authority intends to introduce unified tokenization standards and adjust the retail rollout schedule in response to international developments and market needs. The report also made clear that any stablecoin pegged to the Hong Kong dollar, regardless of where it is issued, must obtain regulatory approval, reflecting a proactive approach to address risks such as money laundering and financial instability.

This regulatory direction is consistent with Hong Kong’s overall plan to participate in national development strategies outlined in the 15th Five-Year Plan. Financial Secretary Paul Chan Mo-po highlighted in a blog post that Hong Kong will use its “super connector” advantage to strengthen ties with the Beijing-Tianjin-Hebei region and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). The Northern Metropolis, a major development initiative, is positioned as a hub for innovation and investment, with Chan emphasizing that Hong Kong’s distinctive status under “one country, two systems” will promote industrial and technological partnerships.

At the same time, Hong Kong’s financial industry is experiencing notable developments, including

on Seres Group Co.’s $1.7 billion IPO, a company supported by Huawei in the electric vehicle sector. This public offering highlights Hong Kong’s attractiveness for raising capital, with the funds expected to enhance its standing as a global investment center. In addition, technological progress such as —introduced at the 2025 Hong Kong Auto Expo—demonstrates the city’s dedication to advancing autonomous vehicles and smart transportation. These trends reinforce Hong Kong’s role as a link between China’s domestic economy and international financial markets.

The HKMA’s licensing strategy for stablecoins aims to strike a balance between encouraging innovation and ensuring financial stability. While the e-HKD’s retail introduction is still pending, the authority’s emphasis on wholesale and cross-border applications is in line with Beijing’s efforts to modernize digital infrastructure. As Hong Kong moves into the 15th Five-Year Plan period, its clear regulatory stance on digital assets may attract international fintech firms looking for a regulated environment to trial new technologies.