On May 30th, Hong Kong's "Stablecoin Regulation" officially came into effect as the world's first special legislation targeting fiat stablecoins, effectively filling the regulatory gap for fiat stablecoins.
As RWA continues to develop and deepen, issuers, custodial banks, investors, blockchain technology, and other RWA ecosystem entities are expected to grow rapidly, presenting investment opportunities in RWA asset operation, bank IT, and cross-border payments.
On May 30, Hong Kong's "Stablecoin Regulation" officially came into effect as the world's first special legislation targeting fiat stablecoins, effectively filling the regulatory gap for fiat stablecoins and accelerating their compliant development. As RWA continues to deepen and develop, issuing institutions, custodial banks, investors, and blockchain entities within the RWA ecosystem are expected to grow rapidly, potentially creating investment opportunities in areas such as RWA asset Operation, banking IT, and cross-border payments.
Suggestions for focus:
1) Stablecoin issuers and cryptocurrency exchanges will directly benefit.
2) Considering that RWA represents a benefiting category in the cryptocurrency market, attention is recommended towards service providers capable of RWA issuance, especially those that have successfully conducted RWA issuance like ANT GROUP CO., LTD. related symbols.
3) China Securities Co.,Ltd. believes that the development of cryptocurrencies and stablecoins in Hong Kong will greatly promote the internationalization of the RMB and cross-border payments, and it is advisable to focus on symbols related to cross-border payments.
Hong Kong's "Stablecoin Regulation" has officially become law, and the dominance of Digital Currency "minting rights" may become a global competition focus. On May 30th, the Hong Kong Special Administrative Region government published the "Stablecoin Regulation" in the government gazette, marking the official implementation of this epoch-making digital financial regulatory legislation, and Hong Kong has officially become the first jurisdiction in the world to establish a comprehensive regulatory framework for fiat stablecoins. This groundbreaking legislative action is regarded as another significant breakthrough in the field of fintech regulation since Hong Kong introduced the virtual bank license system in 2017. It will not only further consolidate Hong Kong's status as an international financial center but will also set an "Eastern Standard" in the global digital financial governance arena.
1) From the legislative process, it fully reflects the characteristics of stability, prudence, and gradual progress. The formation of the regulation was not achieved overnight. In 2022, the Hong Kong Monetary Authority released a discussion paper on Cryptos and stablecoins, marking the formal initiation of the regulation. The regulation went through three stages: preliminary research and preparation, gradual construction of the system, and advancement and implementation of the draft, continuously adjusting and optimizing, officially launching on May 30, 2025, ultimately establishing a comprehensive and systematic regulatory framework for stablecoins.
2) Regarding the legislative content, the core innovations involve strict entry requirements, strong reserves, and guaranteed redemption. The regulation adopts the principle of "value anchoring regulation," innovatively constructing a comprehensive regulatory system for stablecoins around aspects such as regulatory agencies, regulatory objects and definitions, regulated stablecoin activities, licensing criteria, license duration, sales restrictions, and regulatory penalties. The core innovations of the regulation mainly manifest in strict entry systems, transparent reserve management, and investor protection. 1) Strict entry system: Issuers need to apply for a license, with a minimum registered capital of 25 million Hong Kong dollars and must prove reserve management capability and risk response ability. 2) Transparent reserve management: The regulation implements a monitoring mechanism of "100% fiat currency reserves + independent custody + monthly audits." 3) Improved investor protection: An unconditional redemption system allows users to redeem stablecoins at face value at any time, and the issuer must handle the redemption within a reasonable timeframe; otherwise, severe penalties apply.
3) From a legislative impact perspective, it balances规范 development and seizing opportunities. As the world's first specialized legislation targeting fiat stablecoins, the regulation fills the regulatory gap for fiat stablecoins and helps promote the compliant development of stablecoins. 1) Raising compliance thresholds: Implementing high-standard licensing systems (such as minimum 25 million fully paid-in share capital, strict reserve asset requirements, etc.) is conducive to raising entry barriers for the stablecoin market, limiting entry for small or emerging stablecoin issuers and filtering out participants who are financially sound and technologically reliable, pushing the stablecoin market towards specialization and transparency. 2) Enhancing investor confidence: The regulation effectively reduces fraud and market risks through strict licensing, reserve asset management, and penalty mechanisms. For example, only licensed institutions are allowed to provide stablecoins to retail investors. 3) Seizing opportunities for global development of stablecoins: With the improvement of the regulatory framework, stablecoins are transitioning from a niche tool in the crypto world to the mainstream financial stage, expected to become the infrastructure of the next-generation financial system. The introduction of the regulation indicates Hong Kong's intention to occupy an important position in the global stablecoin market and seize the opportunities for the globalization of stablecoins.
4) From a global competition perspective, mastering rule-making will likely gain a first-mover advantage in the future reshuffling of the monetary system. Since Hong Kong, countries and regions like the United States, the European Union, and Africa are also fiercely competing for leadership in stablecoins. The U.S. "GENIUS Act" aims to bring stablecoins into the national strategic framework to consolidate the dollar's dominance in the global monetary system and demands that stablecoin legislation must be closely tied to government bond demand. The EU "Crypto Asset Market Regulation Act" aims to redefine the digital financial order with a unified regulatory framework. African stablecoins focus on being a "financial equity tool" to help citizens combat inflation and currency depreciation. In the future, controlling the rules of the "coinage right" for digital currencies is expected to provide an advantage in the reshuffling of the future monetary system.
The stablecoin market is growing rapidly, with increasing activity in cross-border payment applications. 1) In terms of market size, the stablecoin market is growing quickly, with an increase of over 1100% in five years. According to Deutsche Bank data, in 2020, the total market capitalization of stablecoins was about 20 billion US dollars, and by May 30, 2025, the total market capitalization of stablecoins had soared to 249.7 billion US dollars, representing an increase of over 1100% in five years. Among them, the stablecoin Tether (USDT, pegged 1:1 to the U.S. dollar), launched by the stablecoin issuer Tether in 2014, accounts for over 60% of the stablecoin market, followed by USDC (over 24% share). Additionally, stablecoins also dominate trading flows, with trading volumes reaching 28 trillion US dollars in 2024, exceeding the total of Visa and MasterCard, and supporting more than one-third of crypto transactions.
2) From the perspective of market competition, the stablecoin market exhibits a highly concentrated pattern, dominated mainly by fiat-backed stablecoins such as USDT, USDC, TUSD, and BUSD, which together account for over 90% of the market share. Among them, USDT ranks first with an issuance volume of 144.6 billion US dollars, holding a 59% share; USDC’s issuance volume reaches 60.6 billion US dollars, accounting for 25%, with a significant growth rate of 35%. The concentration of the stablecoin market continues to rise, with a prominent head effect.
3) From the application scenario perspective, the activity of stablecoins in cross-border payment settlement is continually increasing. The application scenarios for stablecoins are expanding, primarily including crypto asset trading, cross-border payments, DeFi innovation scenarios, and value storage. Among these, stablecoins are increasingly active in cross-border payment settlements. Measurements by Castle Island Ventures and Brevan Howard Digital (2024) indicate that in the 12 months leading up to May 2024, the payment settlement volume of stablecoins reached about 2.5 trillion US dollars, which is ten times the payment settlement volume in 2020.
The implementation of stablecoin legislation is conducive to accelerating the large-scale application of RWA, and the RWA market size is expected to soar to 16 trillion US dollars by 2030. Compliant and transparent stablecoins are expected to play an indispensable role as both "engines" and "cornerstones" in the RWA ecosystem, constructing a foundation of compliance and trust for RWA financing while significantly reducing costs and increasing efficiency, thereby accelerating the process of tokenizing various real assets through blockchain technology, which is expected to support the large-scale application of RWA. In recent years, multiple countries around the world, including the U.S., Japan, and Singapore, have actively explored innovative applications of RWA. Giants such as Goldman Sachs, Blackrock, ANT GROUP CO., LTD., and JD.com are all entering the field to seize the development opportunities of RWA. In October 2022, Hong Kong issued the "Virtual Asset Policy Declaration," establishing the strategic position of RWA; in March 2024, the Hong Kong Monetary Authority launched the Ensemble project, covering four major themes: fixed income and investment funds, liquidity management, green and sustainable finance, and trade and supply chain finance, and has formed numerous RWA benchmark cases. For example, in August 2024, Longxin Group, in collaboration with ANT GROUP CO., LTD. and UBS Group (predominantly underwriters), ran through a domestic new energy asset cross-border RWA case, with underlying assets anchored to the operational revenue rights of 9,000 charging stations, raising 0.1 billion yuan.
As of June 2, 2025, the total on-chain value of RWA is 23.1 billion USD (excluding stablecoins), with a year-on-year growth of over 110%. Among these, private credit amounts to 13.4 billion USD, U.S. Treasury bonds to 7.2 billion USD, and commodities to 1.5 billion USD. According to Blackrock's predictions, by 2030 the RWA market size will skyrocket to 16 trillion USD. As RWA continues to deepen its development, issuing institutions, custodian banks, investors, and blockchain stakeholders in the RWA ecosystem are expected to grow rapidly, potentially creating investment opportunities in areas like RWA asset operations, bank IT, and cross-border payments.
Summary: Hong Kong's "Stablecoin Ordinance" has officially launched, bullish on stablecoins and RWA accelerating into a new phase of rapid development. On May 30, Hong Kong's "Stablecoin Ordinance" was officially implemented as the world's first special legislation targeting fiat stablecoins, effectively filling the regulatory gap for fiat stablecoins and accelerating their compliant development. Hong Kong has officially become the first jurisdiction in the world to establish a comprehensive regulatory framework for fiat stablecoins, while countries and regions such as the United States, the European Union, and Africa are also fiercely competing for dominance in stablecoins, aiming to seize the initiative in the reshuffling of the future monetary system. The stablecoin market is rapidly growing, with a five-year increase of over 1100%, and the activity levels of cross-border payment application scenarios are continuously rising. Meanwhile, the legislation for stablecoins is conducive to accelerating the large-scale application of RWA, with the RWA market size expected to soar to 16 trillion USD by 2030. As RWA continues to deepen its development, issuing institutions, custodian banks, investors, and blockchain stakeholders in the RWA ecosystem are expected to grow rapidly, potentially creating investment opportunities in RWA asset operations, bank IT, and cross-border payments.
Risk warning:
(1) Macroeconomic downturn risks: The computer industry serves a wide range of sectors, and under macroeconomic downward pressure, IT spending in the industry being lower than expected will directly affect the demand for the computer industry;
(2) Accounts receivable bad debt risks: Most companies in the computer industry primarily operate on a project basis, requiring acceptance before receiving payment. Lengthening payment cycles from downstream clients may lead to increases in accounts receivable bad debts and may further result in asset impairment losses;
(3) Intensifying industry competition: Demand in the computer industry is relatively certain, but intensified competition on the supply side may result in changes in the industry landscape;
(4) Changes in the international environment: Increasing international trade friction and the United States continually pressuring Chinese technology could impact companies with a high proportion of overseas revenue.
Editor/melody
