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

21st Century Business Herald 21 Finance APP Ye Maishui

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

With the news being announced, concept stocks related to stablecoins are rising, led by securities firms, with Guotai Junan International H-shares soaring as much as 42% intraday.

Some friends in the small circle asked me, since the stablecoin concept is so hot, how can they participate? After consulting various experts, I have 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 issuers, with Dockpoint Financial Technology Limited and Hongkong Shanghai Banking Corporation Limited successfully approved.

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 Eddie Yue pointed out that the successful issuance of stablecoin licenses marks a key step forward for Hong Kong in digital asset development 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 Dockpoint 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 use cases to accelerate HKDAP’s market adoption. Meanwhile, Dockpoint 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 Anli Group on stablecoin research, joined the HKMA’s stablecoin sandbox in 2024, and officially established Dockpoint 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, with application scenarios mainly focusing on 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 stablecoin license applications. 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 Dockpoint Financial stood out due to their banking backgrounds, mature risk control systems, clear business plans, and previous 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 with regulatory guidance.

Two channels to participate in related concept investments

Since the beginning of Hong Kong’s stablecoin legislation, it has attracted much attention, especially regarding the strategic significance of stablecoins, 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 a crucial impact 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 the internationalization of the Renminbi, weaken the dollar’s dominance in the crypto economy, and strengthen Hong Kong’s competitive advantage as an Asia-Pacific digital financial hub.

After the first batch of stablecoin licenses was announced, securities firms holding virtual asset licenses became the first beneficiaries.

The most direct benefit is the expansion of licensed securities firms’ businesses. Licensed securities firms can list Hong Kong dollar/US dollar stablecoin trading pairs on compliant platforms, connecting the entire “fiat—stablecoin—crypto asset” chain. Stablecoins, with high liquidity and higher fees than traditional brokerage, will directly increase trading volume, commissions, and market-making income.

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

H-shares related to stablecoin concepts rebounded first, with Guotai Junan International soaring over 42% at one point, 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 YauCai 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, if friends want to participate in the stablecoin concept rally, there are two channels to consider:

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

The main conditions for activating the Hong Kong Stock Connect are threefold: First, the investor must have a normal, compliant Shanghai or Shenzhen A-share securities account with no serious violations, and the average daily assets in the securities and funds accounts over the past 20 trading days must be not 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 it 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: pass the Hong Kong stock knowledge test organized by the securities company (usually requiring a score above 80), and complete a risk tolerance assessment, with results at the conservative level (C4) or above.

Channel 2: You can choose securities ETFs or securities-focused ETFs. Currently, there are about ten such products, with similar features. Friends should focus on those with small tracking errors and lower management fees; additionally, if you want to buy Hong Kong securities firms but lack sufficient funds, you can consider Hong Kong securities ETFs, which can achieve T+0 trading compared to other securities or securities firm ETFs that settle on T+1. 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, I also need to remind friends that whether individual stocks or ETFs, although there is a clear upward trend driven by news, you should also be aware of potential volatility risks. After all, there is 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, I want to emphasize again: investing involves risks, and caution is required. First and foremost, protect your principal.

(Edited by: Wen Jing)