September 29, 2025, Hong Kong — Nearly two months after the official implementation of the "Stablecoin Regulation," the market is beginning to show signs of structural adjustment. It is understood that at least four Chinese financial institutions, including Guotai Junan International, have quietly withdrawn or postponed their stablecoin license applications, and their related real-world asset (RWA) business layouts are also contracting. This trend is not an isolated phenomenon but a direct reflection of the recent cautious guidance issued by mainland regulators.
1. Shift in Chinese Institutions: Decline in Applications and Slowdown in RWA Business
Since late September, several Chinese institutions that previously expressed strong interest have adopted a more cautious stance. Senior executives from Chinese banks revealed that some institutions chose to pause their subsequent application processes after submitting letters of intent to the Hong Kong Monetary Authority (HKMA) on August 31. Guotai Junan International has internally decided to postpone its stablecoin issuance plan and refocus its business on traditional cross-border financial services. This adjustment is closely related to the guidance from mainland regulatory authorities. It is reported that the relevant opinions require Chinese institutions in the stablecoin field to be "low-key and prudent," explicitly prohibiting business operations within the mainland to prevent the disorderly cross-border flow of mainland funds through this channel, and emphasizing that the parent company must bear joint compliance responsibilities.
The RWA sector, as a related area of stablecoins, has also been affected. Some brokerage practitioners pointed out that certain Chinese institutions have suspended RWA pilot projects such as private equity tokenization in Hong Kong. Industry analysis suggests that the regulatory intent is to avoid a rush of business and prevent potential systemic risks. Previously, several banks with Chinese backgrounds, including Bank of China Hong Kong, Bank of Communications Hong Kong, China Construction Bank (Asia), and China Citic Bank International, had explored stablecoin business, but their pace has noticeably slowed after the regulatory direction became clear.
2. Hong Kong Regulatory Framework: Seeking Balance Between Innovation and Stability
The HKMA has set a clear path for stablecoin regulation. The "Stablecoin Regulation" came into effect on August 1, 2025, requiring issuing institutions to be licensed and ensuring that reserve assets are 100% backed and subject to strict audits. The HKMA has established two key deadlines: institutions must express their intentions by August 31 and submit formal applications by September 30. Since the launch of the sandbox mechanism in March 2024, a total of 77 institutions have expressed their intention to participate. However, the strategic adjustments of Chinese institutions may reduce the number of formal applications submitted.
In the RWA sector, Hong Kong's practices are more early-stage and prudent. Since the pilot program started in 2023, there are currently about 30 to 40 projects in the market, mainly focused on the primary market, involving the tokenization of assets such as U.S. Treasury bonds and gold, with individual project scales generally ranging from HKD 10 million to 20 million. Secondary market trading is still in the early exploration phase.
3. Hong Kong's Position in a Global Context
Globally, major financial centers have varying strategies and progress in the development of stablecoins and RWAs. The table below clearly shows the comparison of key indicators in this field among Hong Kong, the United States, and Europe:
Indicator
Hong Kong
United States
Europe
Number of Stablecoin Application Intentions
77 (August 2025)
No unified license; PayPal and others have issued over $1 billion in USDC
9 banks jointly issuing Euro stablecoin (2026 issuance)
Number of RWA Projects
30-40 (Primary Market)
Hundreds; U.S. Treasury RWA issuance exceeds $50 billion (e.g., Robinhood)
Pilot phase; expected to explode under MiCA framework in 2026
Market Size (in $100 million)
Total pilot scale approximately HKD 200-400 million
Total RWA value exceeds $100 billion (Q3 2025)
Euro stablecoin aims to cover 10% of EU payment market share
Regulatory Pace
First batch of licenses to be issued by the end of this year or early next year
In full swing; Nasdaq supports RWA trading
Driven by MiCA regulations, prioritizing strategic autonomy
From the comparison, it is evident that Hong Kong is more cautious in its market opening pace. The U.S. market is the most aggressive in the RWA sector, with tokenization projects on platforms like Robinhood enabling retail investors to access previously hard-to-reach asset classes. Europe is systematically advancing through a clear regulatory framework (MiCA), aiming to enhance the digital competitiveness of the Euro.
4. Evolution of Market Participants in Hong Kong
Despite the phenomenon of Chinese institutions "withdrawing," the overall development of Hong Kong's crypto asset ecosystem is still progressing. Since the implementation of the Virtual Asset Service Provider (VASP) licensing system, the first batch of licensed institutions, such as HashKey and OSL, have been operating for over two years. The approval of Bitcoin spot ETFs has also attracted traditional financial institutions like Huaxia Fund and Bosera Fund to enter the market. In the stablecoin and RWA sectors, internet brokerages like Futu Securities and Tiger Brokers are actively laying out trading ecosystems based on VASP licenses. Institutions like Yunfeng Financial are also actively exploring the digital asset field, and their recent actions have drawn widespread market attention.
5. Future Outlook
Industry analysis indicates that the current strategies of Chinese institutions can be seen as a phased adjustment in a complex regulatory environment. The first batch of stablecoin licenses is expected to be issued by the end of this year or early next year, at which point institutions like Futu and Victory Securities may become among the first licensed entities, initially forming a "VASP + stablecoin" business closed loop.
The rapid development of international markets, especially the proactive advancement of the U.S. and Europe in the stablecoin and RWA sectors, may create a "compelling" effect on Hong Kong, accelerating the maturity and openness of its local market. The HKMA has repeatedly emphasized that its regulatory goal is to balance innovation and risk. The current localized adjustments in the market may be aimed at building a more sustainable and healthier development foundation. With the issuance of the first batch of licenses, Hong Kong's crypto asset market is expected to enter a new stage of development.
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