FINANCE

Hong Kong Stablecoin Rules Trigger Speculation About a Yuan-Pegged Digital Currency

Published: Jul. 9, 2025 3:41 a.m. GMT+8

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Stablecoins are a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset. Photo: Bloomberg

Hong Kong’s impending stablecoin licensing regime is reigniting investor enthusiasm across digital asset markets, as the city positions itself as a global hub for blockchain finance — and potentially a launchpad for offshore renminbi-backed stablecoins.

The Hong Kong Monetary Authority (HKMA) is to begin accepting applications for stablecoin licenses on August 1, with the first batch expected to be approved by the end of the year.

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Hong Kong will accept stablecoin license applications from August 1, with first approvals expected by year-end, following the May 21 passage of the Stablecoin Bill.
Stocks linked to stablecoin and digital assets surged, e.g., Goldstream rose 530% after a partnership on a yuan-pegged stablecoin; other firms gained between 3.6% and 33.3%.
Regulators emphasize strict compliance; only a few licenses will be issued initially, and analysts warn recent market rallies are largely speculative.

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Who’s Who

Goldstream Investment: Goldstream Investment signed a strategic partnership with AnchorX, a Hong Kong-based stablecoin issuer. This partnership, focused on AnchorX's offshore renminbi-pegged stablecoin, led to a significant 530% surge in Goldstream's stock. This reflects investor optimism about the yuan's internationalization and Hong Kong's role in the stablecoin market.

AnchorX: AnchorX is a Hong Kong-based stablecoin issuer. They have gained approval to issue an offshore renminbi-pegged stablecoin, AxCNH, in Kazakhstan. This stablecoin operates independently of traditional international payment networks, aiming to lower costs and increase the circulation of the offshore yuan. Goldstream Investment recently formed a strategic partnership with AnchorX, viewing it as a significant step in the renminbi's cross-border adoption.

Guotai Junan International: Guotai Junan International saw its stock climb by 28.5% after receiving regulatory approval to offer digital asset trading in Hong Kong. This gain is part of a "policy-driven rally" in Hong Kong's tech and fintech sectors, fueled by the city's impending stablecoin licensing regime.

Victory Securities Co. Ltd.: Victory Securities Co. Ltd. is a Hong Kong-based company that has received approval to offer digital asset trading. The company's stock rose significantly (33.3%) following news related to Hong Kong's stablecoin licensing regime, showing investor optimism for firms involved in the city's burgeoning digital asset market.

Duodian Digital Intelligence: Duodian Digital Intelligence is a company that has expressed interest in applying for a stablecoin license in Hong Kong. Following news of Hong Kong's impending stablecoin licensing regime, its stock was up 10.3%.

Lianlian DigiTech Co. Ltd.: Lianlian DigiTech Co. Ltd. is a Chinese fintech company that has expressed interest in applying for a stablecoin license in Hong Kong. It is one of several companies whose stock saw gains following Hong Kong's move to establish a stablecoin licensing regime.

China Everbright Ltd.: China Everbright Ltd. is mentioned as an early strategic investor in Circle, a U.S. stablecoin issuer. The article states that its stock saw a 7.6% increase following news related to Hong Kong's impending stablecoin licensing regime and a broader rally in tech and fintech sectors.

OSL Group: OSL Group, a licensed crypto trading platform operator, experienced an 8.1% rise in its stock following the news of Hong Kong's impending stablecoin licensing regime. This surge reflects investor optimism about OSL Group's potential for license upgrades within the evolving digital asset landscape.

Bright Smart Securities: Bright Smart Securities is a local Hong Kong broker that saw a gain of 15.5%. This rise occurred on expectations of license upgrades, following news of Hong Kong's stablecoin licensing regime.

Shenwan Hongyuan Hong Kong: Shenwan Hongyuan Hong Kong is one of the local brokers that saw significant gains in stock value, rising 19.7%. This surge is linked to the impending stablecoin licensing regime in Hong Kong and the expectation of license upgrades within the digital asset market.

First Shanghai: First Shanghai (00227.HK) is a Hong Kong-based company. The company's stock gained 18.8% on expectations of license upgrades, following news of Hong Kong's impending stablecoin licensing regime. This aligns with a policy-driven rally across Hong Kong's tech and fintech sectors.

ZhongAn Online: ZhongAn Online is a company whose stock surged by nearly 75% in late May due to its connection with Hong Kong's stablecoin licensing regime. Its affiliate, ZA Bank, holds a stake in RD InnoTech, one of three firms selected for Hong Kong’s stablecoin regulatory sandbox. ZA Bank is also the first virtual bank in Hong Kong to support reserve services for stablecoin issuers.

ZA Bank: ZA Bank, an affiliate of ZhongAn Online, holds a stake in RD InnoTech, one of three firms selected for Hong Kong's stablecoin regulatory sandbox. It is also the first virtual bank in Hong Kong to support reserve services for stablecoin issuers.

Bank of East Asia: Wu Yongqiang, an investment strategist at the Bank of East Asia, suggests that many companies currently seeing stock surges due to the stablecoin trend might not ultimately secure licenses. He notes that investor optimism is also fueled by hopes for China's mainland to ease its stance on digital assets.

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What Happened When

May 21, 2025：: Hong Kong’s Legislative Council passed the Stablecoin Bill, laying the legal foundation for regulated stablecoin issuance.

Late May 2025：: ZhongAn Online’s stock surged nearly 75% after its affiliate ZA Bank’s involvement in RD InnoTech, one of three firms selected for Hong Kong’s stablecoin regulatory sandbox.

June 23, 2025：: At an industry event, HKMA Chief Executive Eddie Yue emphasized that only a few stablecoin licenses will be issued in the first phase and underlined high compliance standards.