Hong Kong Introduces HSEX — The World’s First Fully Regulated Stablecoin Exchange
Hong Kong has officially launched the Hong Kong Stablecoin Exchange (HSEX), marking a historic first as the world’s fully regulated platform dedicated to stablecoin trading. Established jointly by Hong Kong Exchanges and Clearing Limited (HKEX), The Stock Exchange of Hong Kong Limited (SEHK), and Hong Kong Futures Exchange Limited (HKFE), HSEX began operations following the introduction of the city’s Stablecoin Issuance and Trading Regulation, setting a new global benchmark in compliant digital finance.
HSEX is built to provide a secure, transparent, and fully regulated trading ecosystem for stablecoins. The platform brings together leading specialists in blockchain technology, financial innovation, cybersecurity, regulatory compliance, and anti-money laundering (AML) to ensure all operations meet the highest standards.
Under the regulation, all stablecoins issued or traded in Hong Kong must operate on licensed platforms under dual supervision by the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC). HSEX has obtained all necessary licenses, and every listed stablecoin undergoes rigorous review, including reserve verification, smart contract security checks, and comprehensive issuer background vetting. The initial offering includes HKD- and USD-pegged stablecoins, with plans to expand to additional fiat-backed assets.
More than a trading platform, HSEX represents a major evolution of Hong Kong’s financial infrastructure. Built on “technology-first, compliance-first” principles, the platform ensures all trading activity is traceable, auditable, and fully transparent, providing investors with regulatory assurance comparable to or exceeding that of traditional financial markets.
To maintain stability and safeguard user assets, HSEX employs a hybrid model combining centralized order execution with decentralized settlement. Security features include multi-signature wallets, separation of hot and cold storage, and real-time risk monitoring. Partnerships with licensed banks and audit firms ensure complete transparency and verifiability of all stablecoin reserves.
HSEX has also established a Compliance Innovation Lab to explore practical applications of stablecoins in cross-border payments, trade settlement, green finance, and regional digital economy integration. The lab will collaborate with institutions across the Guangdong-Hong Kong-Macao Greater Bay Area to pilot projects that bring stablecoins into real-world financial use cases.
Industry experts emphasize that HSEX not only fills a global regulatory gap but also sets a new benchmark by merging RegTech with digital asset innovation. In an era of volatile crypto markets, Hong Kong’s strong institutional framework and regulatory certainty are expected to attract institutional investors and real-economy participants, accelerating the adoption of digital finance beyond speculation.
HSEX has already launched a pilot program for licensed financial institutions and qualified investors. Retail services are expected to roll out gradually between Q4 2025 and Q1 2026, pending regulatory approval and system testing. Official updates will be shared through designated channels.
As a government-backed financial infrastructure jointly operated by Hong Kong’s three major exchanges, HSEX underscores the city’s commitment to security, compliance, innovation, and openness. The platform is poised to provide reliable, regulated stablecoin trading services globally, strengthening Hong Kong’s position as a premier international hub for digital finance.