KEYTAKEAWAYS
- Hong Kong enforces world’s first full-chain stablecoin regulation, reshaping global digital finance landscape.
- Strict licensing eliminated 90% issuers, boosting compliant institutions like ZA Bank and HSBC.
- egulation fuels Web3 growth, reducing settlement costs and driving blockchain security, identity, and RWA services.
CONTENT
Welcome to CoinRank Daily Data Report. In this column series, CoinRank will provide important daily cryptocurrency data news, allowing readers to quickly understand the latest developments in the cryptocurrency market.
On May 21, Hong Kong officially enforced its Stablecoin Ordinance. This marks a milestone in the city’s efforts to regulate digital assets and reinforces its global financial center status. As the world’s first full-spectrum regulatory framework for fiat-backed stablecoins, the ordinance reshapes the industry landscape and drives explosive growth for compliant institutions. On day one, ZA Bank’s stock surged over 25%, drawing attention alongside Standard Chartered and JD Technology—the first batch of licensed participants.
Read more:Hong Kong Launches Stablecoin Licensing Regime: Asia’s Regulatory Breakthrough in a Global Race
REGULATORY FRAMEWORK IMPLEMENTATION: FROM ENTRY THRESHOLD TO CROSS-BORDER JURISDICTION
The ordinance introduces a “look-through” regulatory model. Issuers must hold at least HK$25 million in paid-up capital and conduct daily liquidity stress tests. Reserves must be fully backed and held in segregated accounts at designated banks. To improve transparency, the Hong Kong Monetary Authority (HKMA) launched a blockchain-based audit system to track fund movements in real time.
This strict system eliminated 90% of smaller issuers, leaving only a few—like Standard Chartered and JD’s stablecoin unit—approved through sandbox testing. Importantly, even overseas issuers of Hong Kong dollar-pegged stablecoins must obtain a license. Within 24 hours of the rule taking effect, HKMA froze 12 accounts linked to an offshore firm.
COMPLIANCE TRACK EXPLODES: INTEGRATION OF TRADITIONAL FINANCE AND WEB3
The market quickly responded to this regulatory clarity.
Standard Chartered and Animoca launched HKDx, the first HKD stablecoin, aiming to serve 3 million merchants in the Greater Bay Area. HSBC introduced its new “StableConnect” service, attracting HK$5.8 billion on day one. Meanwhile, ZA Bank’s share price rose 74% over five days. As the first digital bank offering reserve services for stablecoin issuers, ZA Bank’s deep collaborations with exchanges generated strong investor enthusiasm. On May 29 alone, trading volume exceeded HK$656 million.
INDUSTRY RESHUFFLE AND ECOLOGICAL RECONSTRUCTION
The ordinance triggered sweeping changes. Unlicensed exchanges delisted 17 unregulated “air stablecoins,” causing a $4.6 billion drop in token market value. At the same time, compliant stablecoins saw OTC premiums spike to 4.7%. JD Technology cut cross-border settlement costs by 79% using stablecoins, and Yuancoin enabled 6,000 merchants across Southeast Asia to accept blockchain payments. This regulatory tailwind is reshaping the industry. Blockchain security firms and digital ID providers saw a boom, with one audit firm reporting a 300% surge in orders.
FUTURE CHALLENGES AND MARKET OUTLOOK
Despite the optimism, challenges remain. Quantum computing advances threaten 60% of crypto security. Meanwhile, the proposed U.S. GENIUS Act could restrict non-USD stablecoins, affecting up to 30% of Hong Kong’s liquidity. However, HKMA plans to release Real World Asset (RWA) tokenization guidelines in 2025, expanding stablecoin use cases to cover bonds and real estate. As analysts note, “Compliance is not the end, but the start of building digital financial infrastructure.” In Hong Kong, a tech-driven, licensed financial ecosystem is rapidly taking shape.
