Stablecoin News – On July 7, 2025, Victory Securities, a Hong Kong-based brokerage, saw its stock surge by 10% amid growing excitement over the city’s upcoming stablecoin licensing regime. The rally, part of a broader uptick in Hong Kong’s crypto-related stocks, reflects investor optimism about stablecoin opportunities as the Hong Kong Monetary Authority (HKMA) prepares to issue licenses by year-end. Victory Securities, which gained regulatory approval for crypto trading services in April, is well-positioned to capitalize on this trend, alongside firms like OSL (up 12.2%) and Dmall Inc. (up 8.9%).
The HKMA’s framework, effective August 1, requires stablecoin issuers to maintain full reserve backing and comply with anti-money laundering rules, fostering confidence in the sector. Victory Securities’ stock jump aligns with Hong Kong’s “LEAP” policy, which emphasizes legal clarity and real-world asset tokenization. The firm’s early entry into crypto services, including trading and advisory, has made it a key player in the city’s digital finance push. Analysts attribute the surge to expectations that stablecoins will drive cross-border payments and institutional adoption in Asia.
Hong Kong’s proactive engagement with stablecoin operators, facilitated by InvestHK, has further fueled market enthusiasm. The focus on HKD and yuan-pegged stablecoins aligns with regional efforts to reduce U.S. dollar dominance in trade. However, the HKMA’s cautious approach, with approvals likely in the single digits, suggests intense competition among the 40+ applicants, including JD.com and Ant Group. This selectivity could limit short-term growth but enhance long-term stability.
Victory Securities’ performance underscores the broader market’s confidence in Hong Kong’s regulatory clarity. Yet, risks remain, including global regulatory pressures and the need for robust reserve audits. As stablecoin demand grows, firms like Victory Securities stand to benefit, but they must navigate a complex landscape to sustain this momentum.
