Hong Kong’s Stablecoin Boom: Over 40 Financial Heavyweights Rush to Apply
Hong Kong's financial hub status just got a crypto upgrade. The city's stablecoin framework is drawing firepower from more than 40 major players—proof that even traditional finance can't ignore blockchain's siren call.
Who's jumping in?
While names remain under wraps, insiders confirm applications span exchanges, banks, and fintech disruptors. All chasing a slice of Asia's most crypto-forward regulatory sandbox.
The real shocker? How fast institutions ditched their 'blockchain not Bitcoin' mantra when faced with actual revenue opportunities. Guess those compliance departments work quicker when bonuses are on the line.
One thing's clear: Hong Kong isn't just playing nice with crypto—it's betting big on becoming the stablecoin capital of Asia. And with this level of institutional interest, that bet might just pay off.
Major Firms Line Up for Stablecoin Licenses
Firms that have publicly stated their intent to apply include JD.com, ANT Group, Standard Chartered, and Circle. Several law firms assisting clients with preparation told Yicai they are managing ongoing consultations for others still finalizing application materials.
Alex Zuo, who oversees the payments division at Cobo, said most candidates are large mainland Chinese firms. “Many small and medium-sized companies are not qualified to apply and are only using the topic for short-term publicity,” he said.
Entities preparing to apply include digital finance providers, logistics firms with overseas operations, and internet companies. Several are hiring for blockchain compliance and engineering roles. Use cases under consideration include stablecoin issuance, settlement infrastructure, and multi-address wallet tools to facilitate fiat conversion.
Zuo described a growing separation between companies committed to developing stablecoin-based services and those issuing public statements with limited technical or operational backing.
Hong Kong’s VMS Group makes its first crypto move, backing DeFi fund Re7 as regulatory clarity and rising institutional interest pull in traditional capital.#DeFi #FamilyOfficeCrypto https://t.co/sx35QRHn6q
Hong Kong Emerges as Stablecoin Benchmark
Qiao Yide, vice president of the Shanghai Development Research Foundation, said stablecoins are currency extensions and do not replace the current monetary system.
“They are still tied to sovereign currencies,” he said. He added that full transaction costs, when accounting for exchange fees, on-chain processing, and compliance checks, may be close to one percent.
The stablecoin process in Hong Kong now serves as a case for how financial authorities structure regulated issuance without adopting crypto-native practices wholesale. Licensing volume remains low, while demand among qualified institutions continues to increase.
Several jurisdictions are also advancing their own stablecoin frameworks, with Singapore, Japan, and the EU pursuing licensing rules focused on payments and reserve assets. Each model represents different approaches to integrating private digital currencies into formal oversight.
The outcome in Hong Kong may shape how Asian financial centers balance reserve backing, compliance requirements, and operational scope.
Frequently Asked Questions (FAQs)
Why are smaller firms unlikely to receive licenses?Many lack technical and operational capacity and are engaging with the topic for publicity rather than implementation.
How does Hong Kong’s approach compare to other jurisdictions?While Singapore, Japan, and the EU focus on payment use and reserve requirements, Hong Kong’s approach emphasizes regulatory structure and formal oversight without adopting crypto-native models.
Are stablecoins expected to reduce transaction costs?Analysts say costs may still reach 1% when accounting for fees, compliance, and on-chain expenses, challenging assumptions about efficiency gains.
