Hong Kong is moving to integrate regulated stablecoins into the settlement of tokenized investment products, according to the 2026 Policy Address cited by WuBlock and Live Bitcoin News. The policy directs regulators to support regulated stablecoin trading on licensed virtual asset platforms and proposes using stablecoins to settle tokenized money market funds.
The Securities and Futures Commission will refine virtual asset licensing rules and establish clearer compliance requirements for service providers. Regulators will also strengthen rules covering tokenized investment products and their issuance. The framework could expand stablecoin settlement beyond trading into traditional investment products, connecting regulated digital currencies with tokenized funds and other blockchain-based financial instruments.
Hong Kong has already developed a stablecoin issuer licensing framework and granted its first stablecoin issuer licenses earlier this year. The new policy direction also supports tokenized gold and other suitable real-world assets on licensed platforms, positioning stablecoin settlement as part of a broader digital market infrastructure rather than a standalone payment use case.
The Hong Kong Monetary Authority will test the tokenization of more than HK$1.3 trillion worth of Exchange Fund Bills by the end of 2026. The initiative aims to help banks use these assets more efficiently around the clock. The government also plans to regularize digital bond issuance and explore digital currencies for settlement, dividend payments, and redemption.
At the infrastructure level, the HKMA targets CBDC settlement and 24/7 operations under EnsembleTX around the end of this year, while continuing to explore tokenized deposits. Hong Kong reported that digital bonds issued between 2025 and the first half of 2026 represented nearly 50% of the global market. Additionally, the SFC will begin operating a digital asset custody surveillance system during the second half of 2026, with broader market and anti-money-laundering surveillance components scheduled for 2027.
