Hong Kong Sees Stablecoin Boom Ahead of Licensing Framework

Hong Kong is experiencing a boom in stablecoin development ahead of the launch of its new licensing framework on 1 August. Major tech firms including JD.com and Ant Group are piloting HKD- and USD-pegged tokens for cross-border payments, with the potential to reduce transaction costs by up to 90%.

Investor interest in crypto-linked stocks has soared, with Circle's share price rising 480% since its June listing. Despite the momentum, analysts caution that stablecoins are unlikely to be adopted widely in global trade for at least 2–3 years due to regulatory and operational barriers.

Authorities are taking a cautious approach, limiting licence issuance and consulting on broader digital asset tokenisation strategies.