The first batch of stablecoin licenses in Hong Kong has landed: China's digital finance marks a milestone moment

1、 Strict selection of "regular army": 36 to 2, the highest threshold for issuing cards in the world

The competition for this issuance is fierce, with 36 institutions worldwide submitting applications, but only 2 were ultimately approved, with an approval rate of about 5.6%, demonstrating the principle of "strict entry and high standards" in Hong Kong's stablecoin regulation. The approval of the Hong Kong Monetary Authority focuses on two core aspects: firstly, applicants must possess top-level risk management capabilities and compliance experience, and strictly comply with Hong Kong and international regulations; Secondly, it is necessary to propose clear application scenarios and feasible business solutions. The approved institutions have strong capabilities. HSBC, as one of the three major note issuing banks in Hong Kong and a globally systemically important bank, and Dingdian Financial, which gathers resources from giants such as Standard Chartered and Hong Kong Telecom, deeply integrates traditional financial and technological forces.

The regulatory framework for stablecoins in Hong Kong is arguably the strictest in the world: it requires a paid in capital of no less than HKD 25 million, 100% full reserve assets, high liquidity, and isolated custody, and daily public audit data. At the same time, algorithmic stablecoins are explicitly prohibited, and only fiat collateralized stablecoins are allowed, establishing a full process compliance system of "issuance circulation redemption supervision". This cautious attitude not only ensures financial stability but also leaves room for innovation, becoming a model for global stablecoin regulation.

2、 Hong Kong dollar stablecoin first: focusing on cross-border payments and asset tokenization

Both licensed institutions plan to issue Hong Kong dollar stablecoins in the first phase, with a focus on four major application scenarios. In the field of cross-border payments, stablecoins can compress traditional cross-border settlement time from days to minutes, reducing costs by over 60%, especially benefiting trade exchanges in the Guangdong Hong Kong Macao Greater Bay Area. In terms of local payments, an efficient retail payment system will be established to enhance financial inclusiveness. Tokenized asset trading provides a compliant channel for traditional assets such as stocks, bonds, and real estate to be put on the chain, activating the trillion dollar market.

HSBC plans to launch a Hong Kong dollar stablecoin in the second half of the year, leveraging its global network to expand cross-border applications. Dingdian Finance focuses on technology empowerment, combining the advantages of Hong Kong Telecom and Standard Chartered Financial to create a "payment settlement application" full chain ecosystem. The industry expects that after the launch of compliant stablecoins, they will quickly penetrate fields such as trade finance, supply chain, and wealth management, and reconstruct traditional financial operation models.

3、 Milestone significance: a digital financial bridge connecting the mainland and the world

The landing of Hong Kong's stablecoin license has triple strategic significance for the development of China's digital finance. Internally, provide a 'secure testing ground' for digital asset innovation in mainland China, and explore the collaborative path between digital RMB and stablecoins through the 'Hong Kong regulation+mainland application' model. Previous tests have shown that the cross-border settlement time for both has been reduced from 2 hours to 3 minutes, resulting in a cost reduction of over 20%. Externally, we aim to consolidate Hong Kong's position as an international financial center, attract global compliant capital, and establish a benchmark effect of "global stablecoins looking at Hong Kong".

More importantly, this move promotes China's digital finance to shift from "following innovation" to "leading innovation". As the most international financial city in China, Hong Kong has taken the lead in establishing a legal system for stablecoins, which not only safeguards national financial security but also seizes opportunities for global digital financial transformation. With the maturity of the stablecoin market, it will attract more mainland technology companies and financial institutions to layout in Hong Kong, forming a new pattern of "technology+finance" dual wheel drive.