TechFlow, on August 3, according to Caixin, sources close to Hong Kong stablecoin license applicants revealed that with the implementation of regulatory details, the hype around Hong Kong's stablecoin initiative is expected to cool down. Applicants that are non-financial institutions whose primary use case is cross-border payments may withdraw early from participation due to difficulties in meeting the regulatory requirement of "verifying the identity of every token holder." This also implies that early front-runners such as internet platforms like JD and Ant Group might not appear on the first batch of licensed entities.
In addition, CITIC Group, through its Hong Kong subsidiary Cinda International, has joined forces with several institutions aiming to apply for the first batch of stablecoin licenses. Industry insiders noted that Bank of China (Hong Kong), being one of Hong Kong’s three note-issuing banks, would have inherent advantages in issuing stablecoins and could reassure regulators on both sides.
