Key Insights:
- HKMA plans new CMU products for 24/7 real-time on-chain settlement using e-HKD and central bank digital currencies.
- Hong Kong is considering licenses for digital-asset trading and custody services, with legislation targeted by early 2027.
- HKMA is exploring tokenized deposits and regulated stablecoins for settlement.
Hong Kong is advancing new digital-asset licensing regulations while the Hong Kong Monetary Authority expands its infrastructure for tokenized finance and round-the-clock settlement.
The government and the Securities and Futures Commission have finalized consultations addressing virtual-asset dealing, custody, advisory, and management services. Authorities intend to submit the corresponding legislation to the Legislative Council in 2026.
Additionally, HKMA Chief Executive Eddie Yue stated on Sept. 23 that the Central Moneymarkets Unit will roll out new services by the end of the year to support 24-hour, real-time on-chain settlement. The monetary authority is also investigating tokenized deposits and regulated stablecoins to serve as settlement instruments.
Hong Kong Crypto Licensing Bill Moves Toward LegCo
Hong Kong is preparing to introduce bills concerning virtual-asset dealing, custody, advisory, and management services in 2026. The Financial Services and the Treasury Bureau alongside the Securities and Futures Commission have finished consultations regarding dealing and custody.
The administration has likewise developed proposals focused on advisory and management services, which the Legislative Council discussed during June.
Speaking on September 23, legislator Duncan Chiu stated that officials plan to bring the upcoming digital-asset licensing bill before the Legislative Council during the second half of 2026, with an objective for passage in the latter half of the year or early 2027.
These anticipated regulations will broaden Hong Kong’s cryptocurrency licensing framework beyond the existing system tailored for virtual-asset trading platforms.
HKMA Prepares 24-Hour On-Chain Settlement
The HKMA is additionally gearing up new capabilities for its debt securities settlement system, the Central Moneymarkets Unit. HKMA Chief Executive Eddie Yue announced that the CMU will debut these offerings before the close of 2026.
This network will facilitate round-the-clock, real-time on-chain settlement while integrating with the e-HKD and other central bank digital currencies.
Yue noted that the HKMA will evaluate whether the platform can handle the settlement of tokenized deposits and regulated stablecoins. This initiative connects cash and tokenized assets within a unified market framework.
Furthermore, Hong Kong’s 2026 Policy Address outlines that CMU OmniClear will establish a digital-asset platform this year dedicated to the issuance and settlement of digital bonds.
Digital Bonds Take Larger Role in Market Plans
Hong Kong is simultaneously scaling up its digital bond program. According to the 2026 Policy Address, the region accounted for nearly half of all global digital bond issuances spanning from 2025 through mid-2026. The government intends to issue digital bonds on a regular basis while testing additional methods for digital-currency settlement throughout their lifecycle.
Before the year concludes, the HKMA will also run trials on tokenized Exchange Fund Bills. Government data shows banks hold upwards of HK$1.3 trillion in these bills. Tokenization will empower banks to utilize these holdings continuously around the clock for liquidity and balance-sheet administration, as highlighted in the Policy Address.
In parallel, the HKMA’s Tokenized Bond Expert Group will persist with its efforts concerning the legal and technical frameworks required for distributed ledger technology.
Licensing and Infrastructure Develop Together
The proposed Hong Kong cryptocurrency licensing framework introduces another dimension to the territory’s digital-asset architecture. While Hong Kong already issues licenses to virtual-asset trading platforms and implemented a stablecoin issuer regime in August 2025, these new proposals target dealing, custody, advisory, and management services that operate outside components of the current setup.
Yue also contextualized these digital updates within a wider fixed-income and currency promotion. He reported that average daily foreign-exchange turnover in Hong Kong climbed approximately 20% in April compared to last October, alongside a nearly 30% surge in yuan loans.
Authorities likewise intend to prolong the tenors for government offshore yuan and Hong Kong dollar bonds. Such steps equip the CMU with a broader selection of traditional financial assets even as Hong Kong integrates tokenized settlement options via regulated market channels.
Concurrently, Yue pointed out that Hong Kong’s bond market achieved roughly 20% compound annual growth over the past twenty years, with the city handling about a quarter of Asia’s international bond issuance last year. These new CMU services, tokenized bills, and digital bond initiatives now operate alongside the upcoming Hong Kong crypto licensing legislation.