Hong Kong’s Stablecoin Boom: A New Era for Digital Finance

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The digital finance landscape in Hong Kong is undergoing a seismic shift. Recently, the city’s stock market witnessed a dramatic surge in digital asset–related equities, driven by a wave of regulatory advancements and global momentum behind stablecoins. At the center of this transformation is the newly passed Stablecoin Ordinance Bill, which has ignited investor enthusiasm and triggered a rally across cryptocurrency and fintech stocks—not just in Hong Kong, but across mainland China's A-shares as well.

Market Surge Signals Strong Investor Confidence

One of the most striking performances came from ZhongAn Online, whose shares soared as much as 25% during intraday trading, closing with a staggering 66% gain over just five trading sessions. This explosive move wasn’t isolated. On the mainland, A-share listings tied to digital currency technology—including Langxin Group, Xiongdi Technology, Sichuan Golden Creative, and Tianyang Technology—all surged by the daily 20% limit. Other major players like Lakala and Feitian Technologies also posted significant gains.

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This rally reflects growing confidence that stablecoins—digital currencies pegged to real-world assets like the U.S. dollar—are transitioning from niche crypto instruments into mainstream financial tools. The catalyst? Clear regulatory progress both in Hong Kong and the United States.

Hong Kong’s Regulatory Milestone: The Stablecoin Ordinance Bill

In a landmark move, Hong Kong’s Legislative Council passed the Stablecoin Ordinance Bill in its third reading, establishing a formal licensing regime for fiat-backed stablecoin issuers. By the end of 2025, qualified institutions will be able to apply to the Hong Kong Monetary Authority (HKMA) to become authorized stablecoin issuers.

This framework aims to balance financial stability with innovation, enhancing trust in the region’s virtual asset ecosystem while attracting compliant fintech firms to set up operations in Hong Kong. With clear rules now in place, market participants see reduced uncertainty and greater long-term growth potential.

ZhongAn Bank—owned 43.43% by ZhongAn Online—is particularly well-positioned to benefit. As Hong Kong’s first digital bank to offer reserve banking services to stablecoin issuers, it plays a foundational role in the emerging infrastructure. It’s also Asia’s first bank to provide retail customers with access to cryptocurrency trading, giving it deep ties to exchanges and digital asset platforms.

Analysts at GuoJin Securities project strong earnings momentum for ZhongAn in 2025, especially given the low profit base in the first half of 2024 (just RMB 550 million). In Q1 2025 alone, its insurance segment reported a net profit of RMB 5.7 billion, driven by improvements in underwriting and investment returns.

Real-World Asset Tokenization: The Next Frontier

Beyond payments, stablecoins are enabling a revolutionary trend: real-world asset (RWA) tokenization. One pioneering example comes from Langxin Group, which partnered with AntChain (Ant Group’s blockchain arm) to complete China’s first RWA transaction based on new energy infrastructure in Hong Kong—valued at approximately RMB 100 million.

Under this model, physical assets such as electric vehicle charging stations are represented as digital tokens on a blockchain. Each token corresponds to a portion of future revenue generated by a specific charger. Using trusted data and AntChain’s secure infrastructure, these assets become transparent, divisible, and easily tradable—opening up new investment opportunities in green energy.

RWA tokenization transforms traditionally illiquid assets into dynamic financial instruments. And when combined with stablecoins as the primary medium of exchange, transactions become faster, cheaper, and globally accessible.

“Stablecoins are not just digital dollars—they’re the rails for tomorrow’s asset economy.” — Industry Analyst

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Global Momentum: U.S. Embraces Stablecoin Innovation

Hong Kong isn’t alone in advancing stablecoin regulation. Across the Pacific, the United States is making rapid progress with its own legislative push. The Guiding Establishing National Innovation Using Stablecoins Act (GENIUS Act) recently cleared a key procedural vote in the Senate with a 66–32 majority, signaling strong bipartisan support.

U.S. Vice President J.D. Vance emphasized the strategic importance of stablecoins during his keynote at the Bitcoin 2025 conference in Las Vegas:

“This administration does not view stablecoins as a threat to the dollar’s integrity. On the contrary, we see them as a force multiplier for American economic strength.”

If enacted, the GENIUS Act would create a federal framework for regulated stablecoin issuance, likely boosting adoption across banking, remittances, and commerce.

FAQ: Understanding the Stablecoin Revolution

Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being backed by reserves such as fiat currency (e.g., USD), commodities, or short-term government securities like U.S. Treasuries.

Q: Why is Hong Kong’s stablecoin bill important?
A: It establishes legal clarity and oversight for stablecoin issuers, fostering innovation while protecting consumers and financial stability—making Hong Kong a more attractive hub for digital finance.

Q: How do stablecoins improve cross-border payments?
A: Unlike traditional systems like SWIFT that can take days and charge high fees, stablecoin transfers settle in minutes with minimal costs—often under $5—even across international borders.

Q: Can anyone issue a stablecoin in Hong Kong now?
A: No. Once the regulations take full effect, only licensed entities approved by the HKMA will be permitted to issue fiat-backed stablecoins.

Q: Are stablecoins safe?
A: Regulated stablecoins must maintain full reserves and undergo regular audits. Under Hong Kong’s new rules, transparency and risk management will be mandatory for all licensed issuers.

Q: How big is the global stablecoin market?
A: As of 2025, the total market capitalization exceeds $250 billion, with major stablecoins like USDT and USDC widely used in trading, lending, and payments.

Transforming Cross-Border Finance

According to Huaxi Securities, Hong Kong’s regulatory clarity—combined with advances in open-source encryption technologies—will accelerate innovation in cross-border payments. Traditional systems are slow and expensive; stablecoins offer near-instant settlement at a fraction of the cost.

Moreover, open-source platforms like Safeheron are driving transparency and interoperability across blockchains. At its recent global launch event titled Decoding the Open Future of Crypto Payments, Safeheron showcased how secure, open protocols can empower institutions to build scalable payment solutions using stablecoins.

The Bigger Picture: Efficiency, Scale, and Economic Impact

Stablecoins outperform traditional banking systems in efficiency—especially for international transfers. While bank wire transfers may take 3–5 business days and incur fees up to 5% or more, stablecoin transactions typically complete within minutes for just a few dollars.

As noted by GuoHai Securities, this efficiency advantage is driving institutional adoption. Meanwhile,招商证券 (CMBI Research) highlights that many stablecoins are backed by short-term U.S. Treasury bonds—making them indirect holders of American debt. While their current impact on Treasury markets is moderate, broader legalization could lead to increased demand for government securities.

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Core Keywords

The convergence of regulatory clarity in Hong Kong and supportive policy momentum in the U.S. marks a turning point for digital finance. With stablecoins emerging as key enablers of fast, transparent, and efficient transactions, they are no longer speculative instruments—but foundational components of tomorrow’s financial system.