On August 1st, Hong Kong's Stablecoin Decree officially took effect. HKMA has issued detailed licensing guidelines including requirements for capital, custody, KYC, reserves, and governance.
Banks Leading the Race
Leading issuing banks like BOCHK and Standard Chartered are expected to submit their first applications. They have advantages in regulations and institutions according to Hong Kong's monetary system. Each stablecoin must maintain full support by legal tender under strict bank custody.
HKMA will only issue a few licenses in the first round. Candidates must submit applications before September 30th for consideration. Issuers who do not submit applications within three months will be closed in November.
Multiple parties are now preparing application files. State-owned enterprises, sandbox companies, and fintech corporations are all participating. Application success will depend on practical use cases and sustainability.
Target scenarios include asset tokenization, cross-border payments, and cryptocurrency transactions. These use cases will determine which companies are approved.
Securities companies will initially focus on stablecoin trading, custody, and advisory services. They are also exploring crypto asset portfolio services. So far, 44 brokers have upgraded their Type 1 licenses.
Hong Kong's top brokers are racing to secure cryptocurrency licenses right now. Not doing so risks losing competitiveness in digital finance. Large Chinese brokers like Guotai Junan and Eastmoney have already upgraded.
Legal Warning
Hong Kong regulators warn about potential exaggeration and speculative risks. Investors must carefully assess asset support and project feasibility. Conceptual tokens without substance may still reappear despite new regulations.
Some companies are exploring stablecoins backed by CNH for cross-border payments. For example, China Asset Management Company (Hong Kong) has launched multiple crypto funds this year. Hua Xia Digital RMB Fund became the first Off-Chain RMB fund. Industry experts view this as an important event exploring Off-Chain RMB stablecoin potential.
