Hong Kong's Licensing System for Stablecoin Issuers Aims to Boost Real-World Applications

According to PANews, Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui, highlighted the benefits of a licensing system for stablecoin issuers during the Hong Kong Digital Finance Awards 2025 ceremony. Hui emphasized that this system will advance the development of practical application scenarios and address challenges faced by the real economy. The licensing framework sets stringent requirements for reserve asset management, stability mechanisms, redemption processes, and prudent risk management. For instance, reserve assets must always exceed the potential redemption value and should be held in high-quality, highly liquid assets. Hui encouraged market participants to propose ideas on how the government can lead in experimenting with and utilizing licensed stablecoins.