The stablecoin landscape is rapidly evolving, capturing the attention of investors, regulators, and financial institutions worldwide. With Hong Kong passing its landmark Stablecoin Bill, the momentum behind regulated digital currencies is accelerating. As compliant Hong Kong-issued stablecoins are expected to launch by the end of 2025, related stocks have already begun to reflect growing market optimism.
This shift isn’t isolated. From Wall Street to Asia’s fintech hubs, stablecoins are emerging as a critical bridge between traditional finance and the digital asset ecosystem. Their role in cross-border payments, decentralized finance (DeFi), and institutional adoption is expanding—driving investor interest in companies positioned at the forefront of this transformation.
Hong Kong Establishes World-Leading Stablecoin Regulatory Framework
Hong Kong has cemented its status as a global Web3 hub by enacting the Stablecoin Ordinance Draft, establishing a licensing and supervision regime for "fiat-referenced stablecoin issuers." This makes Hong Kong the first jurisdiction globally to implement a comprehensive regulatory framework for fiat-backed stablecoins.
By the end of 2025, compliant Hong Kong dollar-pegged stablecoins are expected to go live. The Hong Kong Monetary Authority (HKMA) has already granted preliminary sandbox access to three issuer groups:
- RD InnoTech (Roundcoin Innovation Technology)
- JD ChainTech (Hong Kong)
- A consortium comprising Standard Chartered Bank (Hong Kong), Animoca Brands Limited, and Hong Kong Telecommunications (HKT)
These entities are actively testing use cases ranging from cross-border remittances to supply chain finance, setting the stage for broader financial integration.
Key Stocks Poised to Benefit from the Stablecoin Boom
As regulatory clarity emerges, investors are turning to equities with direct exposure to stablecoin development and infrastructure. Below are some of the most notable players gaining traction in the market.
LianLian Digital (2598.HK)
A leading provider of digital payment solutions, LianLian Digital operates LianLian Global, which collaborates with RD InnoTech on stablecoin applications in cross-border payments. The company reported strong growth:
- Revenue increased 27.9% year-on-year to RMB 1.315 billion
- Net loss narrowed significantly from RMB 656 million to RMB 167 million
- Adjusted profit reached RMB 78.7 million
- Total Payment Volume (TPV) surged 64.7% to over RMB 3.3 trillion
With a robust 51.9% gross margin and holding a Virtual Asset Trading Platform (VATP) license in Hong Kong, LianLian is well-positioned for expansion in global payments and Web3.0 innovation.
ZhongAn Online (6060.HK)
ZhongAn Bank, in which ZhongAn holds a 43.43% stake, is Hong Kong’s first digital bank to offer reserve banking services for stablecoin issuers. It’s also Asia’s first bank to provide retail crypto trading services.
Notably, ZhongAn indirectly owns 8.7% of RD InnoTech—one of the three approved sandbox participants. This dual exposure positions ZhongAn to benefit from both:
- Potential valuation upside in RD InnoTech
- Growing net interest income from reserve asset management
JD Group (9618.HK)
JD ChainTech has advanced to the second phase of HKMA’s sandbox, developing JD-HKD—a stablecoin linked to digital RMB. The project focuses on real-world applications in cross-border payments and supply chain finance, aligning with China’s broader digital currency strategy.
Standard Chartered (2888.HK) & Hong Kong Telecom (6823.HK)
These firms have formed a joint venture with Animoca Brands to issue Hong Kong dollar-backed stablecoins. Currently in late-stage sandbox testing, their goal is to reduce foreign exchange costs across the Greater Bay Area—potentially unlocking trillions in regional trade value.
OSL Group (863.HK)
As Asia’s leading compliant digital asset infrastructure platform and the only Hong Kong-listed company focused exclusively on digital assets, OSL reported record results:
- Revenue hit HKD 375 million, up 79% year-on-year
- Profit from continuing operations reached HKD 55 million, reversing a HKD 250 million loss in 2023
With the new stablecoin regulations, OSL stands to gain from increased institutional demand for secure custody, trading, and issuance services.
HashKey Technology (1611.HK)
HashKey offers virtual asset trading, lending, asset management, and OTC services—effectively functioning as a full-service exchange. As Hong Kong advances its vision as an international Web3 and digital finance center, HashKey is poised to benefit from rising crypto trading volumes and institutional participation.
👉 See how digital finance leaders are leveraging blockchain innovation—don’t miss what’s next.
Global Trends Fueling Stablecoin Adoption
The excitement around stablecoins extends far beyond Hong Kong.
In the U.S., the Senate recently passed a procedural vote on the GENIUS Act (2025 Guide for Electronic Necessities in Innovation and Unified Safeguards)—a bill aiming to establish federal oversight for USD-pegged stablecoins. If enacted, it could open the floodgates for institutional capital into the sector.
Meanwhile, Circle, issuer of the world’s second-largest stablecoin USDC, has initiated its IPO process on the New York Stock Exchange under the ticker “CRCL,” targeting a valuation of approximately $6.7 billion. A successful listing would mark a historic milestone—the first public company dedicated solely to stablecoin operations—signaling deeper integration between crypto and traditional finance.
Bitcoin’s recent surge past $110,000—reaching a market cap of nearly $2.18 trillion—has further spotlighted the importance of stablecoins. Now ranked fifth among global asset classes behind gold, Microsoft, NVIDIA, and Apple, Bitcoin’s rise has intensified demand for stable digital assets that offer liquidity and risk mitigation.
What Are Stablecoins? A Quick Overview
Stablecoins serve as a volatility buffer in the crypto market. USDT and USDC alone account for nearly 90% of total market share.
Core Features of Stablecoins:
- Peg Mechanism: Backed 1:1 by reserve assets (e.g., USD), ensuring price stability through redemption guarantees
- Reserve Composition: Primarily cash and short-term U.S. Treasuries—over 80% of USDT and USDC reserves as of 2024
- Transparency: Regular proof-of-reserves audits conducted by third-party firms
- Adoption: Widely accepted across exchanges and DeFi protocols
Key Use Cases:
- Crypto Market “Safe Haven”: Traders shift into stablecoins during high volatility to avoid fiat conversion fees and tax implications
- Cross-Border Payments: Traditional remittances cost ~6.3% (World Bank), while stablecoin transfers settle in seconds at under 1% cost
- DeFi Infrastructure: Serve as collateral in lending platforms, derivatives markets, and yield-generating protocols
Regulatory Outlook and Future Potential
Under the new Hong Kong law, any entity issuing fiat-referenced stablecoins—whether in Hong Kong or abroad but targeting HKD parity—must obtain a license from the HKMA. Issuers must comply with strict requirements regarding reserve management, redemption rights, and operational transparency.
Companies holding VATP licenses or participating in regulated stablecoin ecosystems are likely to unlock new revenue streams—from transaction fees to custody services and interest income on reserves.
Frequently Asked Questions (FAQ)
Q: What is a fiat-referenced stablecoin?
A: A stablecoin pegged to a traditional currency like the U.S. dollar or Hong Kong dollar, backed by equivalent reserves to maintain price stability.
Q: Why is Hong Kong’s stablecoin regulation significant?
A: It’s the world’s first comprehensive legal framework for fiat-backed stablecoins, setting a benchmark for global regulators and boosting institutional confidence.
Q: How do stablecoins reduce cross-border payment costs?
A: By enabling near-instant settlements without intermediaries like correspondent banks, slashing both time and fees compared to traditional systems.
Q: Can retail investors benefit from stablecoin growth?
A: Yes—through exposure to listed companies involved in issuance, infrastructure, or regulated trading platforms that stand to gain from adoption.
Q: Are all stablecoins equally safe?
A: No—regulation matters. Compliant stablecoins like those under HKMA oversight undergo regular audits and maintain high-quality reserves, reducing counterparty risk.
Q: Will we see a yuan-backed stablecoin soon?
A: The Hong Kong framework lays the foundation for offshore RMB-pegged stablecoins, supporting renminbi internationalization efforts in the long term.
Conclusion
The passage of Hong Kong’s Stablecoin Ordinance marks a pivotal moment in financial innovation. With clear rules in place, compliant issuers can now build trusted digital currencies that enhance liquidity, lower transaction costs, and connect global markets.
As adoption grows—fueled by regulatory clarity, technological advancement, and institutional interest—the ripple effects will be felt across capital markets. From payments to DeFi to cross-border trade, stablecoins are no longer speculative tools but foundational elements of tomorrow’s financial infrastructure.
Investors watching this space should focus on firms with regulatory compliance, strategic partnerships, and scalable technology—because the future of money is being rewritten, one stablecoin at a time.