August 1, 2025, marks a pivotal day for Hong Kong's financial market: the Hong Kong Stablecoin Ordinance officially comes into effect.
This not only marks the first time Hong Kong has established regulations for stablecoins, but it also has the potential to reshape the global stablecoin market.
As an international financial center, what signals does this move by Hong Kong signal?
01
Core Rules of the New Policy
Licensing Stablecoins
Starting on July 28, the Hong Kong Monetary Authority (HKMA) will announce details of the "Stablecoin Issuer Licensing Regime," clarifying who can issue stablecoins and how they will be regulated.
The core regulatory requirements are very specific:
● Anti-money laundering—strictly verify user identities to prevent illicit capital flows;
● Reserve management—the reserve assets behind stablecoins (such as US dollars and Hong Kong dollars) must be sufficient, transparent, and readily accessible;
● Information disclosure—issuers must regularly disclose operational data and risk profiles for investors to understand.
Simply put, stablecoin operations in Hong Kong will require a license, making it difficult to exploit these issues.
02
Companies are scrambling for licenses
Fifty or sixty institutions have already set their sights on stablecoins
The new policy hasn't even taken effect yet, but the market is already heating up:
● Sandbox testing first - Companies such as Yuanbi Innovation, JD Coin Chain, and the joint venture between Standard Chartered and Animoca Brands have entered the HKMA's "Stablecoin Sandbox" (pilot testing). The next step is to apply for a full license;
● Global institutions are flocking to apply - Fifty or sixty companies have already submitted applications, including large mainland financial institutions, global internet giants, and even traditional banks;
● Initial licenses are "scarce" - The HKMA revealed that only a few will be approved initially to ensure that only "real players" enter the market and avoid a mixed bag of players.
03
Clear regulatory red lines are drawn
Preventing speculation and rejecting "conceptual hype"
Recently, some listed companies have capitalized on the "stablecoin" hype, causing their stock prices to soar. However, they lack the technical and risk control capabilities, and are simply engaging in "conceptual hype."
The HKMA poured cold water on the proposal:
● If you don't have the skills, don't come—you must possess a mature risk management system, technical capabilities, and specific application scenarios. Simply saying "we want to develop a stablecoin" is useless.
● Strictly prevent bubbles—stablecoins cannot become a tool for speculation and must serve the real economy (such as cross-border payments and digital asset trading). Excessively speculative projects will be directly rejected.
04
Hong Kong needs to adopt a "dual-track approach"
Promoting the internationalization of the RMB
Ping An Securities analyzed that Hong Kong may develop a unique stablecoin approach:
● Connecting with the international community—promoting US dollar stablecoins to facilitate the flow of global funds through Hong Kong;
● Connecting with the mainland—developing Hong Kong dollar stablecoins to serve as a "bridge" between the mainland and international markets, and even provide a "testing ground" for RMB stablecoins.
This move not only consolidates the Hong Kong dollar's financial status, but also facilitates the RMB's global expansion.
Hong Kong's role as an "international financial center" has become even more prominent in the era of stablecoins.
05
Banks are also getting in on the action
Custody services are a new trend
Stablecoins must comply with regulations, and the underlying reserve assets must have somewhere to be stored.
Banks are eyeing this lucrative opportunity:
● Standard Chartered, Deutsche Bank, ZhongAn Bank, and others have begun collaborating to provide custody services to stablecoin issuers. Fees range from 0.1% to 0.5%, which may seem low, but can generate substantial revenue upon scaling.
● Chinese banks are also stepping up their efforts. Chinese institutions like CMB Wing Lung Bank are actively developing these services, enabling them to serve mainland Chinese companies expanding overseas while also earning custodial fees – killing two birds with one stone.
06
Is Hong Kong poised to become a global benchmark for stablecoins?
In the short term, strict regulation may slow the market, but it will lead to greater stability in the long term:
● Compliant stablecoins can make cross-border payments faster and cheaper (for example, cross-border transfers previously took days, while stablecoins can be processed in seconds);
● This provides reassurance for digital asset trading and fintech innovation, accelerating the digital transformation of Hong Kong's financial market;
● As the first financial center in the world to introduce a clear regulatory framework for stablecoins, Hong Kong could serve as a model for other countries.
After August 1st, the "elimination round" of Hong Kong's stablecoin market officially begins.
For businesses, compliance and strength are the entry tickets. For the global market, Hong Kong's exploration may help stablecoins move from a "wild state" to "regulated development."
This balancing act between financial innovation and regulation deserves everyone's continued attention.
If you would like to apply for Hong Kong citizenship, please contact Nebula International. We will provide you with a tailored solution.
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