<div id="readability-page-1"><div><div><p>Recently, Hong Kong has released several key signals regarding stablecoins. From regulators clarifying the licensing schedule, to market institutions initiating the second batch of license applications, and the banking system beginning to promote stablecoin integration into local payment networks—these are all routine policy-driven actions when viewed individually. However, when viewed within the same timeframe, the direction is quite clear: stablecoins are transitioning from a &#34;pilot tool&#34; to a &#34;system building phase.&#34; On April 13th, Hong Kong Financial Secretary Paul Chan's statement set the tone for Hong Kong's stablecoin strategy: &#34;small steps, quick progress.&#34; This signifies that regulators are seeking a delicate balance between embracing innovation and mitigating risks. The first batch of licenses will be issued in a &#34;small number,&#34; and stringent requirements will be imposed on applicant institutions—they must have &#34;real-world application scenarios.&#34; This is clearly to ensure that stablecoin projects can truly take root, rather than being castles in the air. The regulatory authorities will adopt a &#34;pilot first, then rollout&#34; strategy, considering issuing a second batch of licenses only after the first batch of projects have matured and accumulated experience. This caution precisely reflects the robustness of Hong Kong's financial system. Nature and Positioning: Secretary for Financial Services Paul Chan clearly stated that stablecoins are essentially &#34;payment instruments,&#34; not &#34;investment instruments.&#34; This definition sets clear boundaries for the future development of stablecoins in Hong Kong and also indicates that their regulatory focus will revolve around areas such as payment clearing and anti-money laundering. Under this regulatory framework, the structure of market participants is also undergoing significant changes. According to disclosures, Futu Securities and OSL Group, among other institutions, have participated in the second batch of stablecoin license applications. This signal clearly indicates that the issuance and circulation of stablecoins is shifting from being primarily driven by native crypto projects to being dominated by licensed financial institutions and compliant platforms. This means that stablecoins are no longer just liquidity tools within the on-chain ecosystem, but are being incorporated into the infrastructure of the traditional financial system. More significantly, this signifies the advancement of application scenarios. HSBC is pushing forward with the integration of its stablecoin into local payment systems, including PayMe and the HSBC HK App, supporting peer-to-peer transfers and merchant payments. This move signifies that the use cases for stablecoins are expanding from transactions and settlements to retail payments. Once the relevant system completes its closed loop, its functional positioning will undergo a fundamental transformation: from &#34;a category of digital assets&#34; to &#34;a form of digital currency that can directly participate in daily economic activities.&#34; At the currency level, the Hong Kong Monetary Authority (HKMA) has also released more flexible policy space. On April 11, HKMA Deputy Chief Executive Chan Wai-man revealed that stablecoin issuers can freely choose the currency to issue. Although the Hong Kong market will initially launch a Hong Kong dollar stablecoin, the issuance of other currencies is permitted in the future. This reveals a significant amount of information: The Hong Kong dollar stablecoin will become a pioneer in the Hong Kong stablecoin market, consolidating its position as an international financial center and providing a regulated digital channel for Hong Kong dollars for local and international users.</p><li>Multi-currency outlook: Hong Kong's policy flexibility opens the door for the future issuance of stablecoins based on more major international currencies, highlighting its diversification and openness as an international financial center. ...span inline-dir=&#34;ltr&#34; ql-global=&#34;true&#34;&gt;Multi-currency outlook: Hong Kong's policy flexibility opens the door By considering the above multiple dimensions, it can be seen that what Hong Kong is currently promoting is not a single policy pilot, but a relatively complete institutional design: At the entry point, the licensing mechanism controls the participating entities. At the entity level, licensed financial institutions will be introduced as core participants. At the application level, priority will be given to promoting the implementation of payment scenarios. At the institutional boundaries, space will be reserved for multiple currencies, especially the RMB. The core objective of this system is not simply to expand the size of the digital asset market, but rather to integrate stablecoins into the financial infrastructure system under controllable risks. In the current complex and volatile international environment, Paul Chan emphasized that Hong Kong needs to remain highly vigilant and achieve &#34;proactive defense&#34; by enhancing the competitiveness and global influence of its financial markets. This statement refers not only to traditional financial risks, but also to institutional competition within the emerging digital asset system. Stablecoins are currently at the crossroads of this competition. The 24/7, cross-market monitoring system also means that its development path will always be under strong regulation and high transparency. This further demonstrates that Hong Kong's promotion of stablecoins is not a passive choice driven by the market, but a proactive deployment based on financial strategic considerations. Against this backdrop, the significance of stablecoins is shifting. They are no longer merely liquidity tools in the crypto market, nor simply technical means of cross-border fund transfers, but are gradually evolving into a financial medium with &#34;institutional attributes&#34; under different regulatory systems. In other words, the future use of stablecoins will no longer depend on technological feasibility, but rather on the regulatory system you operate under.</li></div></div></div>

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<p>Hong Kong is advancing its stablecoin strategy, transitioning from a pilot phase to a system-building phase. Key developments include the issuance of a limited number of licenses for stablecoin projects, emphasizing their role as payment instruments rather than investment tools. Major financial institutions like HSBC and Futu Securities are leading the charge, integrating stablecoins into local payment systems. The Hong Kong Monetary Authority is allowing flexibility in currency issuance, paving the way for a multi-currency stablecoin market. This initiative aims to enhance Hong Kong's position as an international financial center while ensuring regulatory compliance and risk management.</p>

- Hong Kong is transitioning stablecoins from a "pilot tool" to a "system building phase," with regulators emphasizing quick progress while managing risks.  
- The first batch of licenses for stablecoin issuers will be limited and focus on real-world applications, reflecting a shift towards incorporation into traditional financial systems led by licensed institutions.  
- This strategic development aims to integrate stablecoins as payment instruments into local infrastructure, enhancing Hong Kong's position as an international financial center while maintaining vigilant regulatory oversight.

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With HSBC and securities firms entering the market simultaneously, Hong Kong's stablecoin has entered its next phase.