Hong Kong's new stablecoin regulations will take effect on August 1! 50 institutions are vying for the first batch of licenses, with Ant International and a subsidiary of JD entering the fray, anchoring the internationalization of offshore renminbi.

The Hong Kong Monetary Authority (HKMA) will officially implement new regulations for stablecoins on August 1 (Friday), requiring the issuance of stablecoins pegged to the Hong Kong dollar and related marketing activities to be licensed. The application window will close on September 30, with the first batch of licenses expected to be issued in early 2026. The new regulations set a minimum capital threshold of HKD 25 million (approximately RMB 23 million), aimed at reducing encryption risks and preventing Money Laundering (AML). Currently, about 50 institutions intend to apply, including Ant Group's international business, JD.com's subsidiary, and startups supported by former HKMA president Norman Chan. The new regulations are seen as a key measure for Hong Kong to consolidate its position as a digital asset hub, responding to the competition of US dollar stablecoins driven by the Trump administration, and also providing a new path for the internationalization of RMB.

【Core of the New Regulations: Licensed Operation and High Entry Threshold】 A new regulatory framework for stablecoin issuers in Hong Kong will officially take effect on August 1. Key points of the new regulations include:

1. Strict Regulatory Scope: Focus on regulating the issuance of stablecoins that are pegged to the Hong Kong Dollar and their marketing and distribution activities.
2. License Mandatory Requirements: Companies related to stablecoins must apply for a license, the application deadline is September 30. The Hong Kong Monetary Authority stated that the first batch of licenses is expected to be approved in early 2026.
3. High Capital Requirements: Licensed enterprises must maintain a minimum paid-up capital of 25 million HKD (or equivalent foreign currency).
4. Core Objective: Drop the systemic risks of cryptocurrencies, combat money laundering activities, and protect investor rights.

[Global Context: The Struggle of Stablecoin Policies between China and the United States] This move by Hong Kong comes after President Trump of the United States vigorously promoted the legislation of the dollar stablecoin:

• Trump signed the first stablecoin law in the United States on July 18 to establish America's leadership in the global encryption finance (most mainstream stablecoins are pegged to the dollar).
• The new regulations in Hong Kong are seen as a strategic response to the dominance of the US dollar stablecoin in the Asian financial center, and also serve as a regulatory testing ground for China (Mainland) in the renminbi stablecoin space (recently, China has shifted towards supporting cryptocurrencies pegged to the renminbi).

[Strategic Significance: Empowering Cross-Border Payments in RMB] Morgan Stanley Managing Director Robin Xing analyzed and pointed out:

• China is seeking to reduce its dependence on the US dollar in the stablecoin payment sector.
• Reliable digital currencies can significantly drop cross-border transaction costs, improving efficiency.
• The Hong Kong stablecoin market is still in its early stages of development, and it will still take time to see comprehensive results. The industry generally adopts a mixed currency asset reserve strategy to support the value of stablecoins, in order to maintain the exchange rate stability with the anchored currency.

[Application Update: Giants and Newcomers Compete for the First Batch of Licenses] According to market analysis, about 50 companies plan to apply for a Hong Kong stablecoin license. Known heavyweight applicants include:

1. Institutions supported by the international business unit of Ant Group.
2. JD Group affiliated subsidiaries.
3. The startup RD InnoTech Ltd supported by former Hong Kong Monetary Authority Chief Norman Chan.

• A spokesperson for RD InnoTech stated that they plan to launch a stablecoin pegged to the Hong Kong dollar, focusing on B2B cross-border payments, and mentioned that the new regulations are expected to lay the groundwork for the tokenization of offshore renminbi (CNH).
• HKMA, Ant Group, and JD.com all declined to comment on specific applications. The Monetary Authority emphasized that it will set "high thresholds" for the approval standards, and initially only a "very small amount" of licenses will be distributed.

【Transition Arrangement: 6-Month Compliance Window Period】 To comply with the Stablecoin Regulation effective August 1, the HKMA will establish a 6-month transition period:

• Existing stablecoin issuers may apply for a temporary license during this period (a clear and comprehensive compliance plan must be submitted).
• Enterprises must submit a formal license application within 3 months.
• Those who fail to submit on time may be required to terminate their business within the following 4 months. This move aims to support Hong Kong in building a regulated digital asset center, while strengthening the oversight of fiat-collateralized cryptocurrency issuance institutions.

Conclusion: The implementation of the new stablecoin regulations in Hong Kong marks the entry of the Asia-Pacific region into a more refined phase of cryptocurrency asset regulation. Against the backdrop of the Trump administration's push for the global expansion of USD stablecoins, Hong Kong has leveraged its unique "One Country, Two Systems" advantage to take the lead in constructing a compliant framework. This not only provides a testing ground for international capital with clear regulatory expectations but also opens new channels for cross-border payment and tokenization of offshore RMB through the stablecoin pegged to the Hong Kong dollar. The first round of licensing competition has attracted tech giants such as Ant Group and JD.com, and the effectiveness of their business models and cross-border application scenarios will directly impact Hong Kong's ability to establish a core hub position in the fierce global digital finance competition. Although strict capital and compliance requirements set high thresholds, they are an indispensable path for the industry to achieve maturity and sustainable development.