---
title: "The stablecoin regulations in Hong Kong will take effect on August 1. What are the impacts on cross-border payments?"
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/32339625.md"
description: "Hong Kong's "Regulatory Ordinance for Stablecoin Issuers" will officially take effect on August 1, 2025. As the world's first specialized regulatory framework for fiat-backed stablecoins, its impact on cross-border payments is profound and multi-dimensional. Combining the latest policies and market trends, its core impacts can be summarized as follows: ⚡ 1. Revolutionary improvement in cross-border payment efficiency, significantly reducing time and cost. Traditional cross-border payments (e.g., SWIFT system) take an average of 2.3 days, while compliant stablecoin-based settlement systems (e.g., the HKD stablecoin supported by the XBIT platform) can shorten the process to 27 seconds..."
datetime: "2025-07-29T10:26:35.000Z"
locales:
  - [en](https://longbridge.com/en/topics/32339625.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/32339625.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/32339625.md)
author: "[稳定币交易猿](https://longbridge.com/en/profiles/15730207.md)"
generator: "portal-rs"
---

# The stablecoin regulations in Hong Kong will take effect on August 1. What are the impacts on cross-border payments?

Hong Kong's "Stablecoin Issuer Regulatory Ordinance" will officially take effect on August 1, 2025. As the world's first specialized regulatory framework for fiat-backed stablecoins, its impact on cross-border payments is profound and multi-dimensional. Based on the latest policies and market dynamics, its core effects can be summarized as follows:

### ⚡ 1. **Revolutionary Improvement in Cross-Border Payment Efficiency**

**Significant Reduction in Time and Cost**

-   Traditional cross-border payments (e.g., SWIFT system) take an average of 2.3 days, while compliant stablecoin-based settlement systems (e.g., the HKD stablecoin supported by the XBIT platform) can shorten the process to **27 seconds**, with fees reduced to **less than 18%** of traditional channels.
-   Case: In a test by Standard Chartered Bank, a Southeast Asian importer completed a **HKD 120 million** cross-border settlement via stablecoins, improving efficiency by 82%.

**Optimized Multi-Currency Exchange Paths**

-   Hong Kong supports the issuance of multi-currency stablecoins (e.g., HKD, USD, offshore RMB (CNH)). Platforms like XBIT use "**dual-currency smart routing**" technology to reduce exchange rate losses by **1.8 percentage points** in ASEAN trade settlements.
-   Offshore RMB stablecoins can directly connect with the digital yuan (e-CNY), forming a "**offshore-onshore**" closed loop to accelerate RMB cross-border circulation.

### 🌍 2. **Promoting RMB Internationalization and Weakening USD Hegemony**

**Strategic Resource Binding with RMB Settlement**

-   State-owned enterprises like China Rare Earth Group have launched "**rare earth-specific RMB stablecoins**," mandating overseas buyers to use RMB for settlement. Leveraging China's **88% share** of the global rare earth supply chain, this challenges the monopoly of USD stablecoins (USDT/USDC).
-   This model can be replicated for strategic minerals like lithium and cobalt, building a RMB settlement network for bulk commodities.

**Expansion of Offshore Market Infrastructure**

-   The "**Multi-Central Bank Digital Currency Bridge** (mBridge)," led by the Hong Kong Monetary Authority, has connected 29 banks from 11 countries, enabling real-time clearing between stablecoins and fiat currencies.
-   Bank of China (Hong Kong) plans to issue an offshore RMB stablecoin tested on the XBIT platform, providing a low-cost channel for "Belt and Road" trade.

### 🛡 3. **Regulatory Compliance Reshapes Cross-Border Payment Security Framework**

**Strict Entry and Risk Control Requirements**

-   Issuers must meet **100% high-liquidity asset reserves** (e.g., government bonds), disclose reserve assets daily, and connect to the liquidity pools of Hong Kong's three note-issuing banks.
-   Technically, a "**circuit breaker mechanism**" (e.g., XBIT platform monitors 0.1% asset deviation in real-time and triggers automatic liquidation) is enforced to prevent risks like the TerraUSD collapse.

**Licensing Tiers and Cross-Border Coordination**

-   Only **licensed institutions** (e.g., HSBC, Ant Group) can offer stablecoins to retail users, while non-licensed institutions are limited to professional investors.
-   Hong Kong and the Shanghai Free Trade Zone are piloting a "**domestic offshore + international offshore**" dual-track model, coordinating regulatory sandboxes with mainland policies.

### ⚙️ 4. **Technology-Driven Integration of Payments and Assets**

**RWA (Real-World Asset Tokenization) Scenarios Implemented**

-   Stablecoins serve as transaction mediums for RWA, enabling on-chain ownership of real estate and renewable energy equipment. Examples:
    -   Longshine Group completed charging pile asset financing via stablecoins, planning to connect **30% of charging piles to the Hong Kong market**.
    -   A mainland real estate developer used the XBIT platform to **complete an on-chain acquisition of a Bangkok commercial property in 47 minutes**.

**Cross-Chain and Security Technology Upgrades**

-   Military-grade hardware wallets (operable in \*\*-40°C to 85°C extreme environments\*\*) and national cryptographic algorithms (quantum-resistant) ensure cross-border payment security.
-   Blockchain terminals and cross-chain oracles synchronize liquidity data from note-issuing banks in real-time, enhancing clearing reliability.

### ⚠️ 5. **Potential Challenges and Market Restructuring**

**Licensing Scarcity Limits Participants**

-   The HKMA's first batch of licenses will only issue **single-digit numbers**, giving traditional banks (HSBC, Standard Chartered) and tech giants (Ant, JD.com) first-mover advantages, while startups face high compliance costs.

**Global Competition and Legal Conflicts**

-   Hong Kong imposes **criminal penalties** (up to 6 months imprisonment + HKD 50,000 fines) for unlicensed promotions, stricter than the EU's MiCA framework, which only imposes fines.
-   Cross-border regulation of USD stablecoins (76% global market share) must be coordinated to avoid fragmented rules.

### 💎 Comparison of Old and New Cross-Border Payment Models

The table below summarizes core changes in cross-border payments after the stablecoin regulations take effect:

| **Comparison Dimension**  | **Traditional Model (e.g., SWIFT)** | **New Regulated Stablecoin Model**                              |
| ------------------------- | ----------------------------------- | --------------------------------------------------------------- |
| **Settlement Time**       | Average 2-3 days                    | Seconds-level (fastest 27 seconds)                              |
| **Fees**                  | High (typically 0.5%-3%)            | Very low (less than 18% of traditional channels)                |
| **Supported Currencies**  | Major international currencies      | Multi-currency (HKD, offshore RMB, etc.)                        |
| **Regulatory Safeguards** | Relies on bank compliance systems   | 100% reserves + real-time monitoring + circuit breakers         |
| **Applicable Scenarios**  | General trade settlements           | Innovative scenarios like bulk commodities and RWA tokenization |

### 💎 Conclusion: A Strategic Pivot for Reshaping Global Payment Order

Hong Kong's stablecoin regulation is not just a technological upgrade but a critical move in geopolitical financial strategy:

-   **Short-term**: Reduced costs and efficiency leaps in cross-border payments will incentivize ASEAN and "Belt and Road" trade to adopt RMB stablecoins.
-   **Long-term**: The "**rare earth binding + multilateral clearing network**" challenges USD's on-chain settlement hegemony, extending RMB's reserve role into the digital realm.

> Hong Kong is reshaping the digital financial order with "regulatory sandbox + legislation first"—when seconds-level cross-border payments become the norm, the underlying logic of global capital flows will undergo profound changes.
> 
> 
-   **Access to virtual asset trading:** $GUOTAI JUNAN I(01788.HK) , $Futu(FUTU.US), $FOSUN INTL(00656.HK)$CM BANK(03968.HK) , $VICTORY SEC(08540.HK) etc.;
-   **Stablecoin issuance applicants:** Related to Round Dollar Technology ($ZA ONLINE(06060.HK) , $GOFINTECH QUANT(00290.HK) , $Z FIN(01168.HK) etc.), $JD-SW(09618.HK) , $STANCHART(02888.HK) , and other state-owned enterprise applicants;
-   **Hong Kong virtual asset exchanges (with VATP licenses):** $OSL GROUP(00863.HK) , $HKE HOLDINGS(01726.HK)$LIANLIAN(02598.HK) , $Futu(FUTU.US) , $PUXING ENERGY(00090.HK) (holds Hashkey);
-   **Stablecoin downstream applications:** $YEAHKA(09923.HK) , $GOLDSTREAM INV(01328.HK) , $LIANLIAN(02598.HK)
-   **RWA-related:** $CRYPTO FLOW(08198.HK) , $SENSETIME-W(00020.HK) , $ETHK LABS INC.(01931.HK) , $PHANCY(06682.HK) , $LINEKONG(08267.HK) , $RF GREEN EN AI(00527.HK) , $FOSUN INTL(00656.HK) , $GOFINTECH QUANT(00290.HK) , $SYNAGISTICS(02562.HK) , $YUNFENG FIN(00376.HK) , $DL HOLDINGS GP(01709.HK) , $EASOU TECH(02550.HK) , $VOBILE GROUP(03738.HK) , $CMGE(00302.HK) , $GCL TECH(03800.HK) , $LINKLOGIS-W(09959.HK), $COOLPAD GROUP(02369.HK) , $GREENLAND HK(00337.HK) , $DMALL(02586.HK)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**