Hong Kong adopted a stablecoin bill that allows the region to establish a licensing regime for Fiat-backed StableCOin issuers.

“Hong Kong’s stableecoins are supported by Fiat currency as underlying assets, and we welcome global companies and institutions that are interested in issuing stableecoins to apply in Hong Kong,” said legislative councilor Johnny NG on Wednesday.

Institutions are expected to be able to apply for a license from Hong Kong Monetary Authority at the end of the year.

Hong Kong has been working to establish a stableecoin regime since 2023. The nation had published a consultation document on stableecoin guidelines at the end of 2023. It later introduced the stablecoin bill proposed by the Legislative Council of Hong Kong Special Administrative Region in its third reading, NG’s Post said.

The region has been looking to keep up with nations around the world that have established their stablecoin regimes. The European Union began licensing stablecoin issuers last year after adopting its extensive tailor-made crypto bill, called the markets of Crypto Assets Regulation (MICA). Meanwhile, the United States has a stablecoin bill passing through Congress, and the United Kingdom has collected feedback on draft legislation that will also affect stableecoins.

The StableCOin sector has become the hottest trend in recent years, with both crypto and tradfi companies increasing their exposure to the industry. Ben Reynolds, Bitgo’s CEO of StableCeCoins, said in Consensus 2025 that large banks are increasingly noticing the industry, largely for fear of losing the market share of digital dollars.

Read more: Banks exploring stableecoin in the middle of fear of losing market share, says Bitgo Executive