Hong Kong Prepares for Stablecoin Boom with 40 Companies Seeking Licenses

Hong Kong is emerging as a leading hub for stablecoins in Asia, with over 40 companies preparing to apply for licenses under its new Stablecoin Bill, which comes into effect on August 1. This legislation will enable regulated stablecoin issuance, settlement, and related services under the supervision of the Hong Kong Monetary Authority (HKMA).

Notable companies expressing interest in applying for these licenses include JD.com, Ant Group, Standard Chartered, and Circle. Law firms advising applicants report that they are managing consultations for additional companies that are still finalizing their documentation. The applicant pool is diverse, ranging from digital finance providers and logistics firms with global operations to internet companies exploring blockchain technology. Many firms are hiring blockchain compliance specialists and engineers to develop the necessary infrastructure for stablecoin issuance and settlement, as well as multi-address wallet tools for fiat conversion.

Alex Zuo, who leads the payments division at Cobo, noted that many small and medium-sized companies are using the topic for short-term publicity and are not qualified to apply. He emphasized that most serious candidates are large mainland Chinese enterprises. Zuo also highlighted an emerging divide between firms making genuine moves to develop regulated stablecoin offerings and those issuing vague statements without operational substance.

Qiao Yide, vice president of the Shanghai Development Research Foundation, pointed out that stablecoins are not replacements for sovereign currencies but extensions, always pegged to fiat. He noted that the true cost of stablecoin transactions, including exchange fees, on-chain processing, and compliance, may reach up to one percent. Hong Kong’s new framework is seen as a blueprint for balancing regulated issuance with crypto-native features. Other jurisdictions, including Singapore, Japan, and the European Union, are also drafting their own stablecoin licensing rules covering payments and reserve backing.

The outcome of Hong Kong’s licensing wave may shape how other Asian financial centers design their oversight structures to attract credible private stablecoin issuers while maintaining monetary control. The HKMA will begin accepting applications for these licenses, but the stringent regulations and limited availability suggest that only the most established and compliant firms will secure approval. This has led to a flurry of activity among major players, with many turning to law firms to ensure their applications meet the necessary criteria.

The interest in stablecoins is driven by their potential to facilitate quick and affordable cross-border transactions, as well as the opportunity for large internet corporations to mint and distribute their own stablecoins. Despite some analysts cautioning that the actual cost savings from using stablecoins for cross-border payments may not be as significant as popularly imagined, the demand for licenses remains high, with over 40 businesses already preparing their applications.

The race for these licenses is not just about securing a permit; it is also about positioning oneself as a leader in the rapidly evolving crypto economy. Stablecoins have become a mainstream component of this economy, with a market capitalization of $250 billion. As the launch date approaches, all eyes are on who will receive the first licenses, with Hong Kong aiming to set a global standard for safe and regulated crypto finance. The region's proactive approach to stablecoin regulation is expected to attract more investment and innovation, further solidifying its position as a hub for financial technology.