Hong Kong’s Stablecoin Ordinance Drives $1 Billion in Local Stablecoin Issuance

News Desk

Stablecoin News – Hong Kong’s May 2025 Stablecoin Ordinance has spurred $1 billion in local stablecoin issuance by July 11, 2025, positioning the city as a leading hub for regulated digital currencies

The ordinance, inspired by the EU’s MiCA framework, requires issuers to maintain 1:1 reserves and comply with strict KYC/AML rules, fostering trust in a $253 billion market dominated by USDT and USDC

The policy has attracted issuers seeking to launch HKD-pegged stablecoins, enhancing Hong Kong’s role in global finance.

The ordinance’s success aligns with Hong Kong’s broader crypto-friendly policies, including its approval of a spot Bitcoin ETF on July 10, which drew $500 million in inflows. 

Stablecoins, used for payments and DeFi, benefit from Hong Kong’s robust regulatory environment, with 20% of local investors holding digital assets, per a 2024 survey. 

The framework addresses BIS concerns about financial stability, ensuring reserves are audited monthly.

Challenges include competition from U.S. and EU stablecoin markets and China’s cautious stance on crypto, despite interest in yuan-pegged stablecoins

Hong Kong’s ordinance, however, sets a precedent for regulated issuance, potentially influencing global standards. 

The $1 billion milestone reflects growing institutional adoption, with firms like Harvest Global integrating stablecoins into payment systems.

Hong Kong’s stablecoin surge strengthens its position in the digital currency race, but sustaining growth requires balancing regulation with innovation in a competitive global landscape.

To Top