Following the formal enactment of the Stablecoin Issuance and Trading Regulation by the Government of the Hong Kong Special Administrative Region, Hong Kong Exchanges and Clearing Limited (HKEX), The Stock Exchange of Hong Kong Limited (SEHK), and Hong Kong Futures Exchange Limited (HKFE) have jointly announced the establishment of the Hong Kong Stablecoin Exchange (HSEX) — the world’s first stablecoin trading platform operating under a comprehensive official regulatory framework. Effective immediately, HSEX has officially commenced operations.
The launch of HSEX marks a significant milestone in Hong Kong’s efforts to advance regulatory compliance in the digital asset space. As a specialized institution jointly founded by the city’s three leading exchanges, HSEX brings together top-tier experts in financial technology, blockchain infrastructure, regulatory compliance, anti-money laundering (AML), and cybersecurity. Its mission is to build a secure, transparent, and efficient trading ecosystem that fully complies with the newly introduced Stablecoin Regulation.
According to the regulation, all stablecoins issued or traded within Hong Kong must do so via licensed platforms and are subject to dual oversight by the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC). HSEX has obtained the necessary licenses and is fully authorized to operate legally. All stablecoins listed on the platform must undergo rigorous reviews, including reserve asset audits, smart contract security checks, and comprehensive background vetting of the issuers. The first batch of supported stablecoins includes leading local and international variants pegged to the Hong Kong dollar and US dollar, with plans to expand to other fiat-pegged assets in the future.
More than just a trading platform, HSEX represents a critical extension of Hong Kong’s financial infrastructure in the digital era. According to the HKEX Group, the platform was built from the ground up with a core commitment to “technology-driven, compliance-first” principles, ensuring all trading activities are transparent, auditable, and traceable. It aims to provide investors with a security and compliance experience equal to — or exceeding — that of traditional financial markets.
To ensure system stability and safeguard user assets, HSEX utilizes a hybrid architecture that combines centralized order matching with decentralized settlement mechanisms. The platform features multi-signature wallets, hot-cold wallet separation, and real-time risk monitoring systems. Strategic partnerships have been formed with licensed banks and audit firms to guarantee 100% transparency and verifiability of stablecoin reserves.
In addition, HSEX has launched a Compliance Innovation Lab to explore the application potential of stablecoins in areas such as cross-border payments, trade settlement, and green finance. The lab will collaborate with financial institutions across the Guangdong-Hong Kong-Macao Greater Bay Area to drive pilot programs that support the integration of the regional digital economy.
Industry experts have noted that HSEX not only fills a global regulatory gap in the stablecoin sector but also sets a new standard by merging RegTech with digital assets. Amid heightened volatility in global crypto markets, this compliant channel — grounded in Hong Kong’s institutional strengths and rule of law — is expected to attract substantial participation from institutional investors and real-economy stakeholders, accelerating the transition of digital finance from speculation to practical application.
HSEX has already launched a pilot access program for licensed financial institutions and qualified institutional investors. Retail services are expected to roll out gradually between Q4 2025 and Q1 2026, pending regulatory approval and completion of full system testing. Official announcements regarding platform access and service details will be released through designated channels.
As a state-level financial infrastructure endorsed by the Hong Kong government and jointly operated by the city’s three major exchanges, HSEX underscores Hong Kong’s commitment to financial stability while embracing technological innovation. Looking ahead, HSEX will continue to uphold its core values of security, compliance, innovation, and openness, offering trustworthy stablecoin trading services to users worldwide and supporting Hong Kong’s vision of becoming a world-class digital financial hub.
