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Hong Kong is currently handling license inquiries from over 40 companies in anticipation of its new stablecoin regulations, as reported by Yicai.
The regulations, outlined in the Stablecoin Bill, will take effect on August 1, when the Hong Kong Monetary Authority (HKMA) will start accepting official applications.
Prominent Companies Seek Stablecoin Licenses
Companies that have publicly expressed their intention to apply include JD.com, Ant Group, Standard Chartered, and Circle. Various law firms assisting clients with their preparations informed Yicai that they are conducting ongoing consultations for others who are still in the process of finalizing their application documents.
Alex Zuo, who leads the payments division at Cobo, noted that the majority of applicants are large mainland Chinese enterprises. “Numerous small and medium-sized businesses do not meet the qualifications to apply and are merely leveraging the topic for short-term visibility,” he stated.
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Entities preparing to submit applications encompass digital finance providers, logistics companies with international operations, and internet firms. Many are recruiting for roles in blockchain compliance and engineering. Potential use cases being explored include stablecoin issuance, settlement infrastructure, and multi-address wallet solutions to aid in fiat conversion.
Zuo highlighted a growing distinction between companies dedicated to developing stablecoin-based services and those making public declarations with minimal technical or operational support.
Hong Kong’s VMS Group makes its first crypto move, backing DeFi fund Re7 as regulatory clarity and rising institutional interest attract traditional capital.#DeFi #FamilyOfficeCrypto https://t.co/sx35QRHn6q
— Cryptonews.com (@cryptonews) June 24, 2025
Hong Kong as a Stablecoin Standard
Qiao Yide, vice president of the Shanghai Development Research Foundation, stated that stablecoins serve as extensions of currency and do not replace the existing monetary system.
The stablecoin initiative in Hong Kong now serves as an example of how financial authorities can structure regulated issuance without fully adopting crypto-native practices. The volume of licenses remains low, while demand from qualified institutions continues to grow.
Several regions are also progressing with their own stablecoin frameworks, with Singapore, Japan, and the EU developing licensing regulations focused on payments and reserve assets. Each model reflects different strategies for integrating private digital currencies into formal regulatory oversight.
The developments in Hong Kong may influence how Asian financial hubs manage reserve backing, compliance obligations, and operational scope.
Frequently Asked Questions (FAQs)
Why are smaller firms unlikely to receive licenses?
Many do not possess the necessary technical and operational capabilities and are engaging with the subject for publicity rather than actual implementation.
How does Hong Kong’s approach compare to other jurisdictions?
While Singapore, Japan, and the EU concentrate on payment applications and reserve requirements, Hong Kong’s strategy prioritizes regulatory structure and formal oversight without adopting crypto-native frameworks.
Are stablecoins expected to lower transaction costs?
Analysts indicate that costs may still reach 1% when considering fees, compliance, and on-chain expenses, which challenges assumptions regarding efficiency improvements.
The post Hong Kong Draws Stablecoin Applications from Over 40 Major Firms appeared first on Cryptonews.
