Hong Kong stablecoin license "secured," what investment opportunities can get a "bonus"?

21st Century Business Herald 21 Finance APP Ye Maishui

With many investment methods, a small circle is here to help! The biggest news in the market this week is the official issuance of the first batch of stablecoin licenses in Hong Kong.

Following the news, concept stocks related to stablecoins surged, with brokerage stocks leading the way. Hong Kong-listed Guotai Junan International once soared by 42% intraday.

A friend from the small circle asked, “Since the stablecoin concept is so hot, how can we participate?” After consulting various experts, the small circle has summarized two paths for friends to consider.

Two institutions first obtained licenses

On April 10, the Hong Kong Monetary Authority officially announced the approval results for the first batch of stablecoin issuer licenses, successfully approving two institutions: Dingdian Financial Technology Limited and Hong Kong Shanghai HSBC Bank Limited.

The licenses issued this time took effect on April 10. According to the plans of the two licensed institutions, after completing various preparations, they are expected to officially launch related businesses within the next few months. HKMA Chief Executive Yu Weiwen pointed out that the successful issuance of stablecoin licenses marks a key step in Hong Kong’s development in the digital asset field and is of milestone significance.

The two approved institutions also disclosed their subsequent plans. HSBC announced that, leveraging the new license, it plans to officially launch a Hong Kong dollar stablecoin in the second half of 2026, achieving seamless integration with PayMe and HSBC Hong Kong’s mobile wealth management app. Initially, they will offer multiple daily services to individuals and merchants, including peer-to-peer transfers, payments from individuals to merchants, and using mobile banking to subscribe to tokenized investment products with stablecoins. HSBC also stated that its issued stablecoins will be fully backed by high-quality liquid assets and held in independent custody, strictly adhering to high standards of anti-money laundering and compliance. Additionally, HSBC has been deeply involved in several digital asset pilot projects since 2022, including the Digital Hong Kong dollar+ and Ensemble plans.

Standard Chartered’s Dingdian Financial plans to start phased launches of a compliant Hong Kong dollar-pegged stablecoin HKDAP from the second quarter of this year. The institution will adopt a B2B2C business model, expanding coverage through licensed distribution channels, and encouraging partners to develop practical scenarios to accelerate HKDAP’s market adoption. Meanwhile, Dingdian Financial will focus on the tokenization of real assets for settlement and distribution, developing cross-border payment solutions based on stablecoins. As early as the beginning of 2023, Standard Chartered Hong Kong collaborated with Hong Kong Telecom and Anzai Group on stablecoin research, joined the HKMA’s stablecoin sandbox in 2024, and officially established Dingdian Financial in 2025.

The HKMA reminds that licensed institutions need to complete a series of preparations before launching stablecoins, including technical system testing, risk control mechanisms, and staffing arrangements. According to the timelines of the two institutions, Hong Kong’s first compliant stablecoins are expected to be launched gradually from mid to late this year, mainly in scenarios such as cross-border payments, local retail payments, tokenized asset trading, and various innovative applications.

As of the September 30, 2025 deadline for the first round of applications, the HKMA received 36 license applications for stablecoins. The HKMA stated that the license has high entry barriers, with approval focusing on two main aspects: first, whether the institution has sufficient risk management capabilities, industry experience, and cross-border compliance ability; second, whether it can propose clear implementation scenarios and feasible business plans. HSBC and Dingdian Financial stood out due to their banking backgrounds, mature risk control systems, clear business plans, and prior experience in digital currency and tokenization experiments, with one of them also collaborating with local telecom and payment entities to form a synergistic advantage, aligning more with regulatory guidance.

Two channels to participate in related concept investments

Since the initial legislation of stablecoins in Hong Kong, they have attracted significant attention, especially regarding their strategic importance, which has been placed at a high level.

CICC Research regards stablecoins as a potential force for reconstructing the international monetary order. CITIC Securities believes they have crucial impacts on geopolitics, financial markets, and the next-generation technology landscape. Dongwu Securities suggests that the passage of Hong Kong’s stablecoin legislation could help promote RMB internationalization, weaken the dollar’s dominance in the crypto economy, and strengthen Hong Kong’s competitive edge as an Asia-Pacific digital financial hub.

After the first batch of stablecoin licenses was announced, brokerage firms with virtual asset licenses quickly became beneficiaries.

Most directly, this expands the business scope of licensed brokerages. Licensed brokerages can list Hong Kong dollar/USD stablecoin trading pairs on compliant platforms, connecting the entire chain of “fiat—stablecoin—crypto assets.” Due to higher liquidity and fee rates than traditional brokerage, stablecoins can directly increase trading volume, commissions, and market-making income.

Although there are still many controversies surrounding stablecoins, with the regulations in place, stablecoins are temporarily “stable.” So, how can we participate? Actually, during Friday’s trading session, related sectors in the A-share and H-share markets showed movements.

H-share stablecoin concepts rebounded first, with Guotai Junan International once surging over 42%, closing up 27.69%; Lionteng Holdings rose over 14%, CloudFeng Financial and Victory Securities up over 10%, China Everbright Holdings, Lianlian Digital, and Huaxing Capital up over 8%, OSL Group and Yao Cai Securities Finance up over 5%.

The securities sector in A-shares also moved in tandem, with all 50 stocks in the sector closing higher, including Hato Holdings up 8.15% and CITIC Securities up 7.15%.

Currently, friends interested in participating in the stablecoin concept can consider two channels:

Channel 1: Directly buy related brokerage stocks. Investors with larger capital can buy Hong Kong-listed brokerage stocks through the Hong Kong Stock Connect. If they haven’t activated Stock Connect, they can buy brokerage stocks linked to the A-share market;

The main conditions for activating Stock Connect are threefold: First, the investor must have a normal, compliant Shanghai-Shenzhen A-share securities account with no serious violations, and in the 20 trading days prior to activation, the average daily assets in the securities and fund accounts must be no less than RMB 500k, excluding funds and securities obtained through margin trading. The investor must be at least 18 years old; investors over 70 usually need to handle this in person at a branch.

Second, experience requirements: investors need at least 24 months of A-share trading experience to demonstrate familiarity with basic trading rules and procedures.

Third, knowledge test and risk assessment: investors must pass the Hong Kong stock knowledge test organized by the securities company (usually scoring above 80 points) and complete a risk tolerance assessment, with the result reaching a conservative level (C4) or above.

Channel 2: You can choose brokerage ETFs or securities ETFs. Currently, there are about ten such products on the market, with similar features. Friends should focus on those with small tracking errors and lower management fees; additionally, if you want to buy Hong Kong brokerage stocks but lack sufficient funds, you can consider Hong Kong securities ETFs. Compared to other securities or brokerage ETFs that settle on T+1, Hong Kong securities ETFs can settle on T+0. On Friday, this ETF’s maximum increase exceeded 6.6%, closing up 4.52%. Short-term traders can participate multiple times within the same day.

However, the small circle also reminds everyone that whether individual stocks or ETFs, although there has been a clear upward trend driven by news, friends should also be aware of potential volatility risks. After all, there’s no such thing as a market that only goes up. When market hotspots shift, investments may suffer! Also, an often overlooked issue is the exchange rate risk.

Finally, the small circle wants to emphasize again: investing involves risks, proceed cautiously, and first and foremost, protect your principal.

(Edited by: Wen Jing)

Keywords:
Stablecoin license