Just now! Hong Kong’s stablecoin license “wang zha” has landed—the strongest move—36 firms are vying for just 2 licenses; the old guard sweeps in, and every Web3 newcomer is wiped out!

This afternoon at 5 o’clock, the Hong Kong Monetary Authority announced the allocation of the first batch of stablecoin issuer licenses. HSBC and Standard Chartered’s fintech subsidiary, Dingdian Financial Technology, stood out from thirty-six applicants. This regulatory marathon, which began last August, concluded with a very low approval rate of five percent.

As one of Hong Kong’s three statutory note-issuing banks, HSBC’s balance sheet is the cornerstone of HKD credit. Last May, it took the lead in deploying tokenized deposit infrastructure for commercial use. The license approval signifies that its off-chain credit is systematically migrating onto the blockchain.

Standard Chartered chose a different path. It partnered with Web3 gaming giant Animoca Brands and Hong Kong Telecom to form a joint venture, Anchorpoint, planning to issue the HKD stablecoin HKDG, covering retail payments, cross-border trade, and DeFi applications. This is the only approved entity among the three major note-issuing banks that explicitly incorporates Web3 native forces.

In the global race for stablecoin regulation, Hong Kong’s start seems somewhat delayed. The EU’s MiCA regulations took full effect at the end of last year, and the U.S. ‘GENIUS Act’ entered Congress proceedings in June last year. HKMA Chief Executive Eddie Yue stated in February that the number of licenses issued initially would not be many, aiming for prudence. It now appears he keeps his word.

Looking back at the thirty-six applications, they form an industry ecosystem map. Applicants come from six major categories: banks, tech giants, payment platforms, securities and asset management firms, e-commerce companies, and Web3-native startups. This list itself sends a clear signal: stablecoins are seen as the next-generation payment infrastructure, not just a game within the crypto space.

Among them, JD.com, Yuanbi Innovation Technology, and the Standard Chartered consortium had already entered regulatory sandbox testing before the application window opened, completing over a thousand on-chain transactions. JD.com demonstrated the highest stance among tech companies, planning to issue fiat-pegged stablecoins directly serving its e-commerce ecosystem. Ant Group, Xiaomi, and Bank of East Asia are also on the application list.

However, when the results were announced, the outcome reverted to tradition. Web3 newcomers and tech giants were all rejected, with two licenses firmly held by two century-old note-issuing banks. Regulators stated that approval mainly considers applicants’ risk management capabilities, compliance records, and specific business plans and development strategies. The high threshold is evident.

This license is not a permit for “free money printing.” Its core is a sophisticated reserve system. Every circulating stablecoin must be backed by sufficient cash, short-term bank deposits, or government bonds, and must be strictly segregated from the issuer’s own assets. Holders’ claims on reserve assets take precedence over all other creditors.

Redemption is a statutory right of coin holders; issuers cannot refuse, impose harsh conditions, or charge unreasonable fees, and must process redemptions within one business day. Disclosure requirements are extremely strict: daily reports, weekly submissions, and monthly reports audited by independent auditors and publicly disclosed.

Additionally, regulations explicitly prohibit paying interest to coin holders; all income generated from reserve assets belongs to the issuer. This effectively closes the path for “stablecoin financialization,” strictly limiting its function to a payment tool.

The capital market has already reacted. At today’s Hong Kong stock market close, CMB International’s stock surged over 27%. Other related concept stocks like Yunfeng Financial and Shenwan Hongyuan Hong Kong also saw significant gains. The market logic is not simple speculation but the expectation that, once the stablecoin ecosystem is established, it will generate new business demands such as digital asset custody, RWA market-making, and on-chain clearing.

The true value of stablecoins lies in their role as the fundamental settlement unit of on-chain economies. Hong Kong’s launch of the world’s first comprehensive legal currency stablecoin license system aims to secure a position in future cross-border connectivity negotiations. Whether it’s RWA asset tokenization settlement or cross-border trade digital bill systems, a compliant, trustworthy, and redeemable stablecoin is essential as a starting point.

The HKD 8B paid-in capital is merely an entry fee; the real test lies in the system itself: full reserves eliminate arbitrage, independent custody prevents fund misuse, and real-time audits ensure no mismatches go unnoticed. This is a highly cautious experiment tailored for “old money.”