Cryptocurrency-related stocks surged after the Hong Kong stock market opened on February 20, with Xing Tai Chain Group jumping as much as 100% and the gains still exceeding 79% when reporters from China Securities Journal filed their report. On the previous trading day (February 16), cryptocurrency-related concept stocks in the Hong Kong market strengthened, with Xing Tai Chain Group up more than 77%, Guofu Quantum up over 21%, and Mi Strategy rising more than 10%. Wu Jiezhuang, a member of Hong Kong’s Legislative Council, said the first batch of stablecoin issuer licenses is expected to be issued in March, and proposed distributing them to eligible citizens via a stablecoin airdrop consumption voucher for use at local small and medium-sized enterprises such as catering and entertainment to promote adoption and boost the economy. Related administrative fees could be borne by the licensed companies.
Hong Kong SAR Chief Executive John Lee Ka-chiu previously stated at the Consensus Hong Kong Conference that the HKMA is actively processing license applications and aims to issue the first batch of stablecoin licenses in March. Eddie Yue Wai-man, Chief Executive of the HKMA, disclosed that 36 applications have been received and are currently under evaluation, with only a small number of licenses expected in the first batch. The HKMA has requested additional information from some applicants, such as stablecoin use cases and risk management including investment reserve assets. The licensing framework requires that overseas-issued stablecoins used in Hong Kong for retail investors obtain a local license, establish a Hong Kong office, and deposit reserve assets within the territory.
Xing Tai Chain Group recently announced a strategic cooperation framework agreement with China International Digital Finance Group Limited for a gold real-world asset tokenization project, aiming to leverage Hong Kong’s regulatory framework to strengthen its position in digital finance and create new revenue streams. The project is expected to diversify income through technical services and ecosystem operations, expanding the company’s international presence in the digital finance sector. As regulatory policies worldwide are implemented, the stablecoin industry is expected to develop compliantly with potential for broader application, and Citi projects the market value of stablecoins could reach $3.7 trillion by 2030. Hong Kong authorities continue to emphasize a stability-first approach to risk management as they pioneer stablecoin development.
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