Strong institutional interest in Hong Kong’s new stablecoin licensing regime is likely driven by clear regulatory guidelines and a race among firms to gain first-mover advantage, said local think tank Our Hong Kong Foundation.
The comment came after the Hong Kong Monetary Authority said it had received 77 expressions of interest in stablecoin licensing as of August 31.
Interested parties include banks, technology firms, securities and asset managers, e-commerce and payment companies, fintech startups, and Web3 enterprises.
OHKF said the response exceeded expectations and attributed the strong uptake to Hong Kong’s well-defined regulatory approach and companies’ eagerness to establish an early presence in the market.
Large tech firms with substantial mainland user bases are looking to issue stablecoins for e-commerce payments, while traditional financial institutions plan to use them for cross-border settlements, the think tank said.
Regarding whether more licenses should be issued, it noted that as the legislation is newly implemented, regulators are taking a reasonable and cautious approach toward market demand.
