Hong Kong’s Stablecoin Regime Launches August 1 — But “Stablecoin Stocks” Aren’t Celebrating Yet

TradingKey - As the Hong Kong Stablecoin Bill officially takes effect on August 1, market excitement has fizzled. Despite the landmark regulatory milestone, stablecoin-related stocks have underperformed — reflecting concerns that the licensing rollout is moving slower than expected, and that the Hong Kong Monetary Authority (HKMA) is taking a cautious, conservative approach.

On Wednesday, July 30, most Hong Kong-listed stablecoin stocks declined:

• OSL Group: Down ~8%
• Huaxing Capital Holdings: Down over 4%
• Yao Yuan Securities & Finance: Down 3%
• Alibaba, JD.com: Down over 2%
• Guotai Junan International: Down ~1.5%

Regulatory Framework Finalized — But Approval Process Will Take Time

On July 29, the HKMA announced that the guidelines for stablecoin issuer regulation will be gazetted on August 1, marking the formal start of the licensing regime.

The HKMA encouraged institutions interested in applying to contact the authority by August 31.

It also clarified that the licensing process will be ongoing, and any firm feeling ready to apply should submit its application by September 30 for early consideration.

Rollout Slower Than Expected

CITIC Securities analysts noted that the pace of implementation is slower than anticipated, highlighting the HKMA’s prudent and risk-averse stance.

They now expect the first batch of stablecoin licenses to be issued only in early 2026 — a delay from earlier hopes of approvals before year-end.

Where Are the Investment Opportunities?

Despite the near-term disappointment, analysts still see long-term strategic value in Hong Kong’s stablecoin push — and recommend focusing on two key investment angles:

1. Stablecoin Issuers with High Approval CertaintyCompanies that have publicly signaled intent, meet regulatory standards, and are likely to be among the first licensed.
2. Firms in the Stablecoin EcosystemPlayers that could form a closed-loop virtual asset ecosystem, including:
3. • Crypto exchanges (e.g., OSL Group, Coinbase)
   • Cross-border payment platforms (e.g., LianLian Digital)
   • Mainland brokerages with virtual asset ambitions

Stablecoins are also becoming a new battleground for Chinese tech giants， including JD.com and Ant Group. Both see stablecoins as a way to expand into cross-border commerce, supply chain finance, and Web3.