Catenaa, Thursday, July 10, 2025-Hong Kong is set to issue its first stablecoin licenses this year under a new regulatory regime taking effect August 1, but officials say approvals will likely remain in single digits, according to Financial Services Secretary Christopher Hui.
Hui told Ming Pao that the initiative aims to support real-world use cases such as cross-border payments involving risky or underdeveloped local currencies.
Stablecoins backed by fiat currencies could help lower transaction costs and enhance financial access, he said.
While the framework initially focused on Hong Kong dollar-pegged stablecoins, offshore yuan-based tokens have gained attention.
Tech giants JD.com and Ant Group are reportedly lobbying Chinese regulators to approve such offerings. Hui emphasized that any stablecoin involving foreign currencies would require bilateral discussions to assess monetary and risk implications.
The current framework permits issuance of stablecoins backed by legal tender but does not restrict which currencies can be used. However, involvement of foreign currencies could raise concerns around exchange rate stability and cross-border risks.
Hong Kong’s approach diverges from mainland China, where cryptocurrency trading and mining remain banned. The city has welcomed crypto businesses through licensing structures, including a stablecoin sandbox introduced last year. Participants include Standard Chartered, Animoca Brands, and JD Coinlink.
The move parallels U.S. progress on stablecoin regulation, where the Senate recently passed the GENIUS Act, now awaiting House approval. President Donald Trump has urged swift adoption of the bill.
