Hong Kong opens licensing for stablecoin: Banks and brokers rush in

On August 1st, the Stablecoin Law of Hong Kong officially came into effect, along with detailed guidelines from HKMA regarding capital, custody, KYC, reserves, and governance. Major banks like BOCHK and Standard Chartered are expected to submit the first applications due to their institutional advantages. Stablecoins must be 100% backed by fiat and held in a bank. HKMA will issue only a limited number of licenses in the first round, with the application deadline set for September 30th, and organizations that do not apply may be required to shut down starting in November. Many parties such as state-owned enterprises, fintechs, and securities companies are preparing their applications. Key use cases include asset encryption, cross-border payments, and cryptocurrency trading. The regulatory agency warns of speculative risks and tokens lacking value. Some companies are also experimenting with CNH-pegged stablecoins for international payments.