The proposed dual-track regulatory structure aims to connect USD stablecoins with international markets and HKD stablecoins with mainland China, enhancing financial integration and supporting RMB internationalization.
Ping An Securities reports that Hong Kong may implement a dual regulatory framework for stablecoins, linking USD stablecoins to international markets and HKD stablecoins to mainland China. This strategy is designed to enhance the financial attributes of the HKD and support the internationalization of the RMB. The report predicts a growing market share for non-USD stablecoins as the sector evolves, potentially leading to a unified international regulatory system. Activities regulated by Hong Kong would include both local and offshore issuance of HKD-pegged stablecoins.