Hong Kong stablecoin: first batch of players exits
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Hong Kong stablecoin: first batch of players exits
Many enter, few succeed.
Navigating Web3 tides with focused insightsBy Zhou Zhou, Foresight News
Hong Kong's stablecoin and RWA market sees its first exiters.
On September 29, sources told Foresight News that at least four Chinese-funded financial institutions and their branches, including CITIC Securities International, have recently withdrawn from applying for Hong Kong stablecoin licenses or paused related initiatives in the RWA sector due to prudential considerations.
Morgan, an executive close to Hong Kong financial institutions, told Foresight News that some Chinese banks have adopted more cautious strategies in the stablecoin space following guidance from regulators, with several opting to delay entry. Industry insiders noted that the Hong Kong Monetary Authority (HKMA) has set two key deadlines for market participants: expressing intent to apply by August 31 and submitting formal applications by September 30. This means institutions that have not submitted applications by tomorrow will miss out on the first batch of stablecoin licenses.
In the RWA (real-world assets) space, some Chinese institutions have also paused business attempts following regulatory guidance. Lee, a professional close to a Chinese securities firm, told Foresight News that multiple institutions including CITIC Securities International have suspended activities related to RWA operations in Hong Kong, with CITIC’s RWA business now on hold. Lee added that another A-share-listed Chinese brokerage has also received notice to stop further attempts in Hong Kong’s RWA market.
Within the industry, some professionals view stablecoins as a subcategory of RWA. The essence of USD stablecoins is the tokenization of the U.S. dollar—a real-world asset.
RWA (real-world assets) involves tokenizing physical-world assets. Common examples today include U.S. stock RWA (stock tokenization), U.S. Treasury RWA (Treasury tokenization), and gold RWA (gold tokenization). As an emerging industry, RWA has developed particularly rapidly in the United States. For example, Robinhood, America’s largest online brokerage, has attempted stock RWA by tokenizing private equity in well-known companies such as SpaceX and OpenAI, allowing retail investors to purchase tokens representing equity in pre-IPO companies—an effort that has drawn global attention from the financial sector.
In the U.S., stablecoins and RWA are booming, with giants like PayPal, Robinhood, and Nasdaq entering the space. In Europe, nine major European banks have announced plans to jointly launch a regulated euro stablecoin next year. Meanwhile, the launch of Hong Kong dollar stablecoins is imminent, with over 77 companies having submitted expressions of interest for stablecoin licensing. At the same time, under regulatory oversight, Hong Kong’s RWA pilot program in the primary market has been running for over two years, with currently around three to four dozen projects active.
However, with a surge of mainland institutions flooding in from banking, securities, and internet sectors, Hong Kong’s stablecoin and RWA赛道 has become overheated. Against rising market and public sentiment, mainland regulators have chosen to cool things down.
Hong Kong’s stablecoin and RWA赛道 welcomes its first batch of exiters.
Localized Cooling
Even before and after the official implementation of Hong Kong’s Stablecoin Ordinance, cooling signals had already emerged—but only in certain areas.
In early August, this reporter attended a conference in Hong Kong, where numerous financial and internet companies were announcing applications for stablecoin licenses and actively advancing into the RWA space. Yet almost overnight, all financial institutions, internet firms, and entities in Hong Kong’s stablecoin sandbox canceled media interviews and ceased any public discussion about stablecoins.
On August 1, 2025, Hong Kong officially implemented the Stablecoin Ordinance, establishing the world’s first comprehensive legal framework regulating stablecoins. Just days before the ordinance took effect, a set of guiding directives was distributed to financial institutions.
Foresight News learned from sources that mainland regulators conveyed guidance to financial institutions, requiring them to maintain a low profile in stablecoin-related businesses and communications, refrain from excessive promotion or creating public hype, and strictly manage internal research and public sentiment.
"You can do it, but you cannot talk about it," said a source.
According to a Caixin report on September 11, one insider revealed that Hong Kong’s stablecoin business is still in its infancy, with an uncertain future. Excessive participation by Chinese institutions could pose risks, necessitating risk isolation. Another senior financial professional indicated that previously proactive institutions such as Bank of China (Hong Kong), Bank of Communications (Hong Kong), China Construction Bank (Asia), and CMB International—along with other Chinese SOEs based in Hong Kong—may postpone their applications for Hong Kong stablecoin licenses. Notably, Bank of China (Hong Kong) is one of Hong Kong’s three note-issuing banks.
Morgan interpreted the regulatory stance for Foresight News: First, Chinese institutions involved in Hong Kong crypto-related businesses are prohibited from operating such services on the mainland and must participate cautiously in virtual asset-related activities; second, inflows of mainland capital are banned; third, parent companies of Chinese financial institutions bear compliance responsibility.
In summary, current mainland regulators are primarily concerned about a rush of Chinese financial institutions and internet companies into Hong Kong’s crypto market, and have already guided some Chinese institutions to exit stablecoin and RWA operations. Meanwhile, local “non-Chinese-funded financial institutions” continue to carry out cryptocurrency-related businesses in an orderly manner.
The pace of issuing Hong Kong stablecoin licenses may resemble that of Hong Kong’s earlier cryptocurrency exchange licensing. For instance, only one or two institutions received the first batch of VATP crypto exchange licenses, while the second batch included seven or eight.
A source told Foresight News that富途, Victory Securities, and several other cryptocurrency exchanges in Hong Kong are expected to officially commence operations by year-end. The first group of VASP-licensed firms, such as HashKey, officially launched trading services in August 2023—over two years ago.
When and Where Will It Heat Up?
Since 2025, the entire U.S. crypto market has been heating up continuously—from exchanges and ETFs to stablecoins, RWA, and DAT—never missing a beat. However, Hong Kong moves at its own pace.
Morgan said: "Hong Kong’s RWA pilot in the primary market has been running for over two years, with currently around thirty to forty projects active, most with project sizes of HK$10–20 million. Theoretically, a secondary market for RWA in Hong Kong is feasible—and there may already be institutions applying."
The same applies to Hong Kong’s stablecoins. Hong Kong’s Stablecoin Issuer Sandbox officially launched on March 12, 2024, and has now operated for about 1.5 years. After the stablecoin licensing rules took effect, the HKMA received 77 expressions of interest for stablecoin licenses by August. Sources predict the first batch of stablecoin licenses will be issued by year-end or early next year.
Cooling in Hong Kong’s crypto market happened overnight—and similarly, localized or sudden warming could also occur in an instant.
Global developments are quickly affecting Hong Kong’s crypto industry. Progress on stablecoins and RWA in the U.S., Europe, South Korea, and elsewhere is influencing Hong Kong’s trajectory. On September 25, nine major European banks joined forces to launch a euro stablecoin compliant with the EU’s Markets in Crypto-Assets Regulation (MiCA). Participating banks stated the initiative would offer a genuine European alternative to the U.S.-dominated stablecoin market and enhance Europe’s strategic autonomy in payments. This stablecoin is expected to launch in the second half of 2026.
DAT (Digital Asset Treasury companies) is another area where Hong Kong has yet to make significant moves. For example, Yunfeng Financial, dubbed a "Jack Ma crypto概念股," cumulatively purchased 10,000 ETH in the open market on September 2 and listed ETH as an investment asset in its financial statements. The company stated it plans to explore adding diversified mainstream digital assets—including BTC and SOL—to its corporate strategic reserve. Over the past month, Yunfeng Financial’s stock price surged 65.09%.
In the U.S., sectors like ETFs, stablecoins, RWA, and DAT are fully heating up, with soaring market enthusiasm. By comparison, Hong Kong remains cautious and restrained in these same areas, proceeding with careful exploration.
Exiters and Entrants
Many enter, many exit.
From the first wave of crypto exchanges like HashKey and OSL, to participants in spot Bitcoin ETFs such as China Asset Management, to today’s players in stablecoins, RWA, and DAT—the crypto space offers numerous niches for participation, drawing a continuous influx of financial institutions and internet companies eager to claim a share.
VASP licenses attracted brokerages like Futu, Tiger Brokers, and Victory Securities; spot Bitcoin and Ethereum ETFs drew wealth management firms such as China Asset Management and Boshi Fund; stablecoins brought in banks like BOC International and Standard Chartered; DAT has drawn Hong Kong-listed companies like Yunfeng Financial to include digital assets on their balance sheets... The crypto industry is becoming fully integrated into Hong Kong’s financial system.
Temporary exit does not mean permanent loss. Just as the internet transformed finance—today nearly every brokerage is an online brokerage, and every bank is an internet bank—the integration of crypto and finance may eventually become deeply seamless. Early entrants bear the greatest risks, but also reap the biggest rewards.
Note: Morgan and Lee are pseudonyms.
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