The Hong Kong Monetary Authority (HKMA) has created a regulatory sandbox specifically for stablecoin issuers in Hong Kong. This sandbox serves as a testing ground for institutions interested in stablecoin issuance within Hong Kong's jurisdiction, providing clarity on regulatory expectations and allowing participants to demonstrate the feasibility of their proposed projects. Participation in the sandbox is contingent upon meeting specific criteria outlined by the HKMA, and transparency measures are in place to foster trust among stakeholders. The HKMA sees the sandbox as a platform for dialogue and collaboration, allowing regulators to strike the right balance between innovation and risk management in the stablecoin issuance sector.