TechFlow news, on May 21, according to Hong Kong Legislative Council member Ng Kit-ching's post, the Legislative Council of the Hong Kong Special Administrative Region has passed the Draft Stablecoin Ordinance at third reading. After the bill becomes law, institutions are expected to be able to apply to the Hong Kong Monetary Authority to become authorized stablecoin issuers by the end of 2025.
Ng stated that Hong Kong stablecoins will be backed by legal tender as underlying assets, and welcomed global enterprises and institutions interested in issuing stablecoins to apply in Hong Kong. He emphasized that stablecoin issuance is only the first step in building Web3 infrastructure, and two key directions will be prioritized in the future: first, creating more stablecoin use cases, including physical retail and cross-border trade; second, enhancing market features of stablecoins, such as enabling interest distribution to holders, to boost market competitiveness.
