The Hong Kong Monetary Authority (HKMA) on Thursday said it has so far received applications from 36 institutions for a licence to issue stablecoins.

The city's Stablecoin Ordinance to regulate the industry took effect on August 1.

Stablecoin is a type of cryptocurrency based on blockchain and is backed by a reference asset, typically fiat currencies such as the US or Hong Kong dollar.

Issuers of fiat-referenced stablecoins within the city or Hong Kong-dollar backed stablecoins anywhere must be licensed by the HKMA.

The city's de facto central bank said it had received 36 applications by the end of September from banks, technology companies, asset management and investment firms, e-commerce platforms, payment companies, start-ups and Web3 enterprises.

A spokesperson said the HKMA hopes to issue the first batch of licences early next year.

The spokesperson added that the public should remain vigilant regarding unregulated stablecoins.