HK looks for ‘first-mover’ edge over US, Singapore in payments

Hong Kong is positioning itself as a global stablecoin hub with one of the world’s most comprehensive regulatory frameworks, set to take effect on August 1. Analysts say the law reflects the city’s ambition to lead in digital finance, offering a more accommodating stance than Singapore’s regime and ahead of US legislation still in progress. The move may accelerate the use of stablecoins for real-world payments, particularly cross-border transactions. Industry players see Hong Kong as a potential testing ground for yuan-backed stablecoins, leveraging its offshore renminbi holdings and digital asset infrastructure. The ordinance requires stablecoin issuers to be licensed and has sparked interest from firms like JD.com’s Coinlink, amid hopes of supporting China’s de-dollarisation push and enhancing Belt and Road transaction efficiency.