Hong Kong to Fast-Track Stablecoin Licensing as New Law Takes Effect August 1

Hong Kong is taking a significant leap in the stablecoin market with the introduction of its new Stablecoin Ordinance, set to take effect on August 1, 2025.

Financial Secretary Paul Chan Mo‑po expressed optimism about the city's potential to become a global hub for stablecoin issuance, citing the growing demand for stablecoins as a driving force. The global market value of stablecoins is estimated at approximately $251 billion, with trading volumes reaching $27.6 trillion in 2024.

“With the booming digital asset market, demand for stablecoins is expected to rise further,” Chan wrote in his official blog.

The ordinance establishes a licensing regime for issuers of fiat‑backed stablecoins, providing one of the most comprehensive regulatory frameworks globally.

Financial Market Growth and Digital Asset Innovation

Hong Kong's financial markets have shown remarkable performance this year. The Hang Seng Index has risen over 3,800 points, up 20%, while daily stock market turnover has more than doubled, reaching HKD 242 billion (US$30.9 billion).

Additionally, the city has raised nearly HKD 79 billion (US$10.1 billion) through new listings and over HKD 150 billion (US$19.2 billion) via secondary financing. These figures underscore the growing confidence of international investors in Hong Kong's financial ecosystem.

In the digital asset domain, Hong Kong has made significant strides since its first digital-asset policy declaration in late 2022. To date, 10 virtual‑asset trading platforms have been licensed, with eight more pending.

Local banks facilitated digital‑asset transactions worth HKD 17.2 billion (US$2.19 billion) last year, with custodial holdings reaching HKD 5.1 billion (US$0.65 billion).

The government is preparing a second policy declaration to integrate traditional financial services with digital asset technologies, aiming to enhance sector security, flexibility, and innovation.

Key Corporate Initiatives in Stablecoin Development

Ant Group's Stablecoin Strategy Ant Group, via its subsidiaries Ant International and Ant Digital Technologies, is expanding in the stablecoin space. Ant International, headquartered in Singapore, plans to apply for a license immediately after August 1, 2025, targeting cross-border payments and global treasury management.

Ant Digital is collaborating with the HKMA on technology development and participating in Project Ensemble. Kelvin Li, General Manager, Platform Tech at Ant International, remarked “By integrating blockchain technology with stablecoins, we can reduce settlement times from days to seconds, significantly enhancing liquidity management for enterprises.”

Their strategy combines AI, blockchain, and stablecoins to build smart contracts and on-chain services, covering cross-border payments, DeFi, and Web3.

JD Blockchain Technology's Sandbox Initiative JD Group’s subsidiary, JD Blockchain Technology, joined the HKMA’s Stablecoin Sandbox in July 2024 and has entered its second testing phase. It is developing JD‑HKD, a HKD‑pegged stablecoin, for cross-border transactions, investment, and retail payments. CEO Liu Peng noted “The ordinance provides a supportive institutional environment for stablecoin development. We are working closely with HKMA to expand testing to mobile and desktop applications.”

Their stablecoin aims at supply‑chain finance and retail use, leveraging JD’s Hong Kong–Macau e‑commerce platform—distinct yet complementary to Ant’s global DeFi orientation.

Stablecoins: A Focus for Future Growth

The Stablecoin Ordinance is expected to open new avenues for Hong Kong’s economy and financial services. It allows qualified issuers to operate under a clear regulatory framework, fostering trust and market stability. As Chan noted, “We have noticed that many market participants are very interested in this.”

Hong Kong's proactive approach to stablecoin regulation reflects its ambition to lead the global digital asset market. By providing a robust legal framework and leveraging strategic advantages, the city aims to attract international stablecoin issuers and secure a prominent position in this rapidly evolving industry.