Hong Kong is set to introduce a Hong Kong dollar (HKD) stablecoin, with the first batch of licenses anticipated to be approved in early 2026. According to Hong Kong Treasury Secretary Paul Hui, the licensing process for compliant stablecoins is progressing as planned, focusing on balancing innovation, economic integration, and risk management. Xu Zhengyu highlighted that while the legal framework in Hong Kong permits various currencies as stablecoin benchmarks, the issuance of RMB-pegged stablecoins involves strategic considerations, including China's exchange rate and monetary policy. The decision requires careful evaluation of associated risks and benefits.