The regulatory framework for stablecoins in Hong Kong is about to be officially implemented.

The Hong Kong Monetary Authority will officially accept applications for stablecoin issuer licenses starting from August 1, 2025. This marks the actual implementation phase of Hong Kong's stablecoin regulatory framework, which will have a profound impact on the digital asset market in Hong Kong and globally.

Key Points of Regulatory System

• The first application window period is from August 1 to September 30.
• Encourage applicant institutions to proactively contact the Monetary Authority for communication before August 31.
• The threshold for issuing licenses is very high, with the first license expected to be issued early next year.
• Set a 6-month transition period to classify and handle existing issuing institutions.
• Require full reserves, strict standards such as processing redemptions within 1 day.

Core Positioning of the Policy Layer

• Stablecoins are positioned as financial infrastructure, not speculative tools.
• The first batch of scenarios focuses on cross-border payments and Web3 testing.
• Allow anchoring to different fiat currencies, but anchoring to the renminbi should be done with caution.
• A cautious approach will be taken at the beginning of the deal, with a limited distribution.

Market Reaction and Expectations

• The first batch of licenses may be only in single digits, with the earliest expected to be issued by the end of the year.
• Pay attention to institutions that have entered the sandbox and the construction platform of scenarios.
• A regulatory framework of parallel tracks for HKD/CNY can be expected.
• Short-term investment opportunities in sectors such as payments and blockchain.

Trends in Corporate Applications

• 50-60 companies have expressed their intention to apply, half of which are payment institutions.
• 5 institutions participated in the sandbox testing, including JD.com, Standard Chartered Bank, etc.
• China SanSan Media, Tiansheng Capital, and others have clearly stated that they will apply.
• Ant International, Lianlian Digital, and others are actively discussing application matters.

The implementation of the Hong Kong stablecoin regulatory framework will set a new benchmark for digital asset regulation, and it is worth continuously关注ing its progress in both policy implementation and market application.