Hong Kong Sets Single-Digit Cap on Stablecoin Licenses

Hong Kong’s stablecoin regulation, effective August 2025, will cap licenses at single digits, creating intense competition among major firms.

This development significantly affects cross-border payment costs and regulation while sparking notable interest from China’s largest tech and financial entities.

Hong Kong to Limit Stablecoin Licenses to Single Digits

Hong Kong will implement a new stablecoin regulation in August 2025, allowing single-digit licenses, thus creating intense competition among applicants such as JD Coin Chain, Standard Chartered–Anheuser-Busch consortium, Yuan Coin Innovation, and Ant International.

Key implications include the potential reduction in cross-border payment costs and the improvement of transaction efficiency. JD.com aims for a 90% reduction in global transaction costs, underscoring the interest of large financial and tech companies.

“We can reduce the global cross-border payment cost by 90% and then improve the efficiency to within ten seconds … I hope one day when I shop around the world I can use JD’s local currency for global payments.” — Richard Liu, Chairman, JD.com

Asia’s Unique Approach: Impacts and Prospects

Did you know? Hong Kong’s move to cap stablecoin licenses is unique in Asia, contrasting with the broader approach of many Western nations amidst global regulatory shifts.

Ethereum (ETH) remains a major cryptocurrency with a $2,548.24 price and a market cap of $307.62 billion, as per CoinMarketCap data. It’s seen a decline of 1.12% over the past day, but a substantial rise of 72.45% over ninety days, suggesting significant investor confidence.

Coincu analysts believe Hong Kong’s steps may prompt other regions to adopt tighter stablecoin regulations. Emphasis on compliance and risk management could set a precedent that encourages technological collaboration between international and domestic enterprises.