Hong Kong has officially passed the Stablecoin Bill in its third reading. This landmark legislation opens the door for regulated stablecoin issuance and aligns digital assets with traditional finance under a clear regulatory framework.
Hong Kong Greenlights Regulated Stablecoin Issuance
The Hong Kong Legislative Council has approved the Stablecoin Bill, marking a major milestone for crypto regulation in the region. The new law allows qualified institutions to apply for stablecoin licenses from the Hong Kong Monetary Authority (HKMA) starting later this year, with full implementation expected by the end of 2025.
Only stablecoins backed by legal tender will be eligible, ensuring transparency, accountability, and consumer protection in a rapidly growing market.
Hong Kong’s Vision to Become a Global Web3 Leader
Reacting to the bill’s passage, Johnny Ng Kit-chong, a member of the Legislative Council, called the move a major step in Hong Kong’s journey to becoming an international Web3 hub. He invited global fintech and crypto companies to apply for stablecoin licenses and participate in shaping the city’s blockchain-driven future.
Lawmaker Outlines Roadmap for Stablecoin Utility
Ng emphasized that licensing is only the beginning. He proposed boosting stablecoin adoption in:
- Retail payments
- Cross-border trade
- Peer-to-peer transactions
He also floated the idea of distributing interest earnings to stablecoin holders as an incentive, aimed at increasing user engagement, competitiveness, and long-term growth.
Stablecoin Market Overview: Key Stats
The global stablecoin market continues to expand rapidly:
- Total market cap: $247.36 billion
- 24-hour trading volume: $81.24 billion
Top stablecoins by market cap include:
- Tether (USDT) – $151.63B
- USD Coin (USDC) – $60.50B
- USDS – $7.02B
- Ethena USDe – $5.02B
- DAI – $3.69B
Tether remains the dominant force, ranking as the third-largest crypto asset after Bitcoin and Ethereum.
What This Means for Crypto and Global Finance
Hong Kong’s stablecoin regulation may spark a new wave of institutional participation in the crypto market. With a strong regulatory foundation, the city could serve as a bridge between traditional finance and blockchain innovation, making stablecoins more secure, trusted, and globally accepted.
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FAQs
It’s a law enabling regulated issuance of fiat-backed stablecoins by licensed institutions under HKMA oversight.
Institutions are expected to be able to apply for licenses from the Hong Kong Monetary Authority (HKMA) by the end of 2025, according to the bill passed by the Legislative Council.
Unlike many countries that are still debating stablecoin laws, Hong Kong has taken a clear regulatory stance, offering a licensing path—similar to MiCA in the EU, but more focused on fiat-backed coins.
There is no official announcement on this yet, but the current framework leaves room for a potential Hong Kong dollar-pegged stablecoin in the future.
