Hong Kong to Issue Limited Stablecoin Licenses for Cross-Border Payments

With the "Stablecoin Ordinance" set to take effect on August 1, around 50-60 companies are vying for licenses in Hong Kong, with only a few expected to be granted.

Summary

As the "Stablecoin Ordinance" is set to be implemented on August 1, approximately 50 to 60 companies, primarily payment institutions and well-known internet firms of Chinese origin, are interested in applying for stablecoin licenses in Hong Kong. The first phase is anticipated to issue only 3 to 4 licenses, mainly for stablecoins pegged to the Hong Kong dollar and the US dollar.

Terms & Concepts
  • Stablecoin: A type of cryptocurrency that is pegged to a stable asset, such as a fiat currency, to minimize price volatility.
  • Financial Asset Tokenization: The process of converting ownership rights in an asset into a digital token on a blockchain, facilitating easier trading and transfer.
  • ETFs (Exchange-Traded Funds): Investment funds that are traded on stock exchanges, holding assets such as stocks, commodities, or bonds.