Hong Kong Stablecoin is coming
The three institutions can test the intended business models within the specified scope and communicate with the HKMA on how to comply with the proposed stablecoin regulatory regime in the future.
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Hong Kong's stablecoin is a delivery tool, not an opportunity for speculation
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Author: Martin
Recently, Hong Kong Financial Services and the Treasury Bureau Director Paul Chan stated thatHong Kong's stablecoin is positioned as a delivery tool and is another manifestation of legal tender. There is no opportunity for speculation.This clear position draws a clear line between stablecoins and speculative cryptocurrencies, highlighting their core function as a means of payment.
Hong Kong's Stablecoin Ordinance officially came into effect in August 2025. The ordinance established a licensing system for stablecoin activities in Hong Kong.
It is the world's first comprehensive regulatory framework for fiat stablecoins.
The Hong Kong Stablecoin Ordinance officially came into effect in August 2025. The ordinance established a licensing system for stablecoin activities in Hong Kong.
It is the world's first comprehensive regulatory framework for fiat stablecoins.The ordinance requires issuers to hold 100% highly liquid reserve assets (such as cash or short-term government bonds) and conduct regular public audits to ensure currency stability and capital security.
Payment cost changes: cross-border fees reduced from 3% to 1%
The traditional bank cross-border payment system has significant pain points:
• High cost:
The cross-border payment fee through the SWIFT system is as high as 3%, and the commission must be shared by multiple layers of intermediaries;
• Inefficiency:
Transaction settlement takes 1-3 days, and capital turnover efficiency is low.
Stablecoins achieve breakthroughs based on blockchain technology:
• Sharp cost reduction:
The point-to-point transaction model eliminates intermediaries, and the handling fee can be reduced to less than 1%;
• Funds arrive in seconds:
Real-time clearing greatly improves the efficiency of capital circulation, and is particularly suitable for high-frequency scenarios such as trade in the Greater Bay Area and settlement along the Belt and Road.
Table: Comparison of cost efficiency of traditional payment and stablecoin payment
Anti-speculation mechanism designed by the regulations: curb speculation at the source
•
Real-name system and anti-money laundering
Real-name system and anti-money laundering: All transactions are subject to KYC (Know Your Customer) verification, and the flow of funds on the chain is traceable throughout the process to prevent anonymous speculation.
Actual application scenarios: Improving the efficiency of the real economy
• Cross-border trade for enterprises:
Chinese energy state-owned enterprises, CITIC Group, etc. have applied for licenses and plan to use stablecoins for corporate settlements in the Greater Bay Area, which is expected to reduce exchange costs by 3%-5%;
• Inclusive finance:
The cost of cross-border remittances for Southeast Asian workers has been reduced from 7% to below 1%, and small and micro businesses can realize automated payment collection through smart contracts;• Gold and commodity trading:
In the next six months, with the establishment of compliant issuers and the launch of the offshore RMB stablecoin (CNH), this tool may become a key driver of RMB internationalization and cross-border payment autonomy.
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