Stablecoins are surging, but Hong Kong is about to slam the brakes

Key Points

1. Over $3.4 billion flowed into the stablecoin market following the passage of the GENIUS Act, increasing total market capitalization by 1.32% to nearly $266 billion.

2. Hong Kong's Stablecoin Ordinance, effective August 1, has attracted over 50 companies seeking licenses, but approvals will be slow and selective, likely in single digits.

3. HKMA chief Eddie Yue emphasized strict AML and tech standards, meaning only well-prepared firms will qualify for stablecoin licenses.

4. Chinese tech giants like JD.com and Ant Group are pushing to issue offshore Yuan stablecoins, viewing U.S. dollar dominance as a strategic concern.

5. Stablecoin-related stocks, such as OSL Group, OKX Chain, and Winsway, have seen market movement even before licenses are granted.