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On August 1, 2025, the Hong Kong Stablecoin Ordinance officially came into effect
The Hong Kong Monetary Authority (HKMA) officially implemented the Stablecoin Ordinance on August 1, 2025, and simultaneously opened the application for stablecoin issuer licenses, marking the official implementation of the policy of Hong Kong, an international financial center in the field of stablecoin supervision.After a year of sandbox testing and rule polishing, Hong Kong has attracted the attention of global industry participants with a clear institutional design and a high-standard regulatory framework, while laying multiple variables for the stablecoin market.This article will comprehensively analyze the implementation of Hong Kong’s stable currency policy and its market impact from the dimensions of regulatory framework, policy positioning, market response and potential risks.
1. Regulatory framework: Strict access and classification transition
Hong Kong’s stablecoin regulatory system is centered on high standards and strict requirements, aiming to ensure financial stability and investor protection.The HKMA accepts the first round of license applications from August 1 to September 30, and encourages institutions to actively communicate before August 31.The 4 supporting documents list the regulatory details in detail, covering licensee operation specifications, anti-money laundering requirements and transition period arrangements.
The core compliance requirements are strict:
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All stablecoin holders must pass identity verification, which is like a real-name system.
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The issuer must meet the rigid conditions such as full reserve, redemption within one day, and establishment of an entity in Hong Kong.
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Chen Jinghong, assistant president of the HKMA, said that this regulation is stricter than the previous whitelist system, but there may be room for adjustment after the technology matures in the future.
Transitional arrangements reflect stratified management:
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Existing institutions can obtain temporary licenses if they meet the requirements within 6 months.
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Those who fail to meet the standards within 3 months must close their business within 4 months, and those who are completely non-compliant must terminate their operations within 1 month.
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Violators will face fines, revocation of licenses and other penalties.
Pegged currencies are open but have high threshold:
Chen Weimin, vice president of the HKMA, made it clear that stablecoins pegged with a single fiat currency or a package of fiat currency can be applied for, but they must be clearly stated in the materials.The first license is expected to be issued in 2026, and the issuance threshold is extremely high, highlighting Hong Kong’s high-quality requirements for stablecoin issuance.
2. Policy positioning: Reject speculation and focus on financial infrastructure
The Hong Kong policy level has always been clear about the positioning of stablecoins: as a financial infrastructure, not a speculative tool.Financial Secretary Chan Mo-po emphasized in his signed article that the value of stablecoins lies in improving payment efficiency and reconstructing financial processes, and needs to be rooted in the needs of the real economy.Hong Pizheng, Chairman of the Financial Development Bureau, further pointed out that asset digitalization is a long-term process and should not pursue the short-sighted goal of “24-hour full link”.
Xu Zhengyu, Director of the Financial Affairs and Treasury Bureau, repeatedly reiterated that issuers must have sufficient capital and reserve mechanisms to prevent systemic risks.In terms of application scenario layout, Hong Kong has listed cross-border settlement as a priority.Mr. Yu Weiwen, President of the HKMA, said that the first batch of stablecoins will focus on cross-border trade settlement, especially in underdeveloped areas of the foreign exchange market such as the “Belt and Road” infrastructure projects, and explore alternative payment functions.In addition, the policy level is promoting the tokenization of assets such as green bonds and ETFs, and using stablecoins to build a value bridge on-chain off-chain.
The RMB stablecoin is prudent to advance:
The policy layer is cautious about the RMB stablecoin that the market is concerned about.Xu Zhengyu admitted that it is not prohibited to anchor the RMB in law, but it is necessary to coordinate exchange rates and monetary policies with the mainland to ensure the overall financial stability of the country.Hong Kong has room for RMB stablecoin field, but it needs to be gradually improved.
3. Market response: Institutional competition and path conjecture
The implementation of the “Stablecoin Regulations” has triggered a warm response from the market.According to incomplete statistics, 50-60 institutions have expressed their intention to apply, of which half of them account for half, and many of them have Chinese backgrounds.The market is expected to issue only 3-4 licenses in the first stage, and the initial stage will be mainly Hong Kong dollar and US dollar stablecoins.
Participant layout logic:
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Five institutions including JD.com Coin Chain Technology and Standard Chartered Bank have participated in the sandbox testing.JD.com has clearly issued a stablecoin pegged to Hong Kong dollar 1:1.
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Animal Brands, together with Standard Chartered and Hong Kong Telecom, has established a joint venture, planning to enter the game asset trading scenario.
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Ant Group, Lianlian Digital, etc. simultaneously deployed the Hong Kong and Singapore markets, seeking compliance in multiple regions.
Brokerage research report analysis:
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CITIC Securities recommends paying attention to two types of entities: issuing institutions with high probability of license approval, and platform-based enterprises participating in scenario construction.
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Ping An Securities put forward the “dual-track pattern” conjecture: the US dollar stablecoin is connected to the international market, and the Hong Kong dollar stablecoin connects to the mainland, leaving room for the internationalization of the RMB.
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Morgan Stanley pointed out that Hong Kong provides the first legal path for offshore RMB stablecoins. Relying on the 1 trillion yuan offshore RMB liquidity, it is expected to become a cross-border payment channel, but market trust in the US dollar and Hong Kong dollar stablecoins is required first.
4. Risk and Inspiration: Benchmark Meaning and Rational Warning
Despite the broad prospects, the stablecoin market still poses risks.The HKMA has issued an announcement warning the public to be vigilant against unlicensed projects and emphasizes that investment risks must be borne by themselves.Legislative Council member Wu Jiezhuang reminded that retail investors should remain rational in dealing with emerging assets and make decisions after fully understanding the product mechanism.
From a global perspective, Hong Kong’s exploration of stablecoin regulation is of benchmark significance.Against the backdrop of accelerated expansion of US dollar stablecoins, Hong Kong has built a stablecoin ecosystem through the path of “strict supervision + compliance”, which not only prevents risk spillovers, but also provides a “Chinese solution” for the formulation of international rules in the field of digital assets.This license battle, which began in August, may reshape the competitive landscape of the global stablecoin market.
Conclusion
The implementation of Hong Kong’s stablecoin policy has not only injected new impetus into local financial innovation, but also set a new benchmark for global stablecoin supervision.With the gradual issuance of the first batch of licenses, Hong Kong is expected to occupy an important position in the global digital asset track, and at the same time open up new paths for the internationalization of the RMB and the construction of the cross-border payment system.However, high-threshold regulation and market uncertainty also remind industry participants that compliance and stability will be the core of future competition.
