On August 1, Hong Kong’s Stablecoin Ordinance officially came into effect, marking the successful implementation of the world’s first comprehensive regulatory framework for fiat-backed stablecoins and leaving a significant milestone in the history of Hong Kong’s fintech development. As is widely known, the financial sector contributes over 20% to Hong Kong’s GDP, underscoring the critical importance of its role as a global financial hub to the city’s status.
In the first half of this year, the Hong Kong Stock Exchange (HKEX) raised a total of HKD 106.713 billion, surpassing the full-year total for 2024. After a four-year gap, HKEX has reclaimed its position as the world’s top exchange. Meanwhile, the latest Global Financial Centres Index shows that Hong Kong not only firmly holds the top spot in Asia but also ranks among the top three globally. The spotlight of the capital markets has once again turned to Hong Kong, making the "Pearl of the Orient" shine even brighter.
Against this backdrop, Hong Kong’s strategic focus on stablecoins is of evident significance. This move will inject stronger momentum into the city’s financial innovation, cultivate fertile ground for optimizing its financial ecosystem, and position Hong Kong as a "rule exporter," thereby enhancing its voice in international finance, reshaping the global financial order, and altering the power dynamics of global financial governance.
The emphasis on "rule exportation" stems from the fact that stablecoins have become a key battleground in global financial competition. As of June 2025, the global issuance of stablecoins has exceeded USD 250 billion. On this front, whoever sets the rules gains the initiative and wields greater influence in the future international financial system.
Guided by this logic of global competition, Hong Kong is advancing toward its goal of becoming a "rule exporter" in stablecoin regulation. The Stablecoin Ordinance adheres to the principle of "same activity, same risk, same regulation," establishing a regulatory framework covering seven dimensions, including capital adequacy, reserve asset segregation, and anti-money laundering.
The core innovations of this regulatory system lie in three aspects: a high-threshold entry mechanism, cross-border and penetrating supervision, and technology neutrality with open scenarios. This rigorous and forward-looking design collectively forms a globally referential "Hong Kong Solution" for stablecoin regulation.
A defining feature of Hong Kong’s stablecoin approach is its emphasis on "stability." The Hong Kong Monetary Authority (HKMA) recently stated that it aims to foster a steady development environment step by step, enabling Hong Kong’s digital asset market to thrive. Officials revealed that the first stablecoin issuer license is expected to be issued early next year, with relatively high entry barriers. They also cautioned against excessive conceptualization and bubble trends in the stablecoin market—precisely reflecting the principle of "stability first."
The high threshold requires stablecoin issuers to hold at least HKD 25 million in capital, with reserve assets held in independent custody—effectively requiring issuers to pass a "health check" before entering the market. This filters out speculators, leaving only "credible and capable" institutions.
Beyond this, the framework further refines investor protection measures: only licensed institutions may sell stablecoins to retail investors, while mandatory transparent audits of reserve assets enhance public trust. Additionally, applicants must demonstrate robust operational sustainability and anti-money laundering capabilities. These measures collectively foster a healthier, more transparent, and stable market.
In this sense, Hong Kong’s Stablecoin Ordinance not only fuels the "engine" of financial innovation but also equips stablecoin development with a "safety helmet," a "regulatory suit," and "traffic rules."
Notably, Hong Kong maintains an open stance on the fiat currencies to which stablecoins may be pegged. While institutions applying to issue RMB-pegged stablecoins still face restrictions on usage scenarios and reserve requirements, the framework allows USD stablecoins to connect with international clearing systems and HKD stablecoins to integrate directly with mainland China’s cross-border payment network. This makes Hong Kong the only testing ground capable of absorbing offshore USD liquidity while deeply aligning with the RMB’s internationalization. Against the backdrop of a shifting USD hegemony and intensifying digital currency competition, the significance of this regulatory innovation becomes even more pronounced.
As Hong Kong’s stablecoin framework transitions from text to reality, this global financial hub is scripting a new narrative for the digital finance era. This is not only a groundbreaking experiment and comprehensive test to propel Hong Kong’s development but also a rule-exporting and power-restructuring initiative that could reshape global financial competition. It validates a fundamental logic of financial markets: those who set the rules define the future.
